lunes, 6 de junio de 2016

What is Multilevel?

Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for sales of other vendors they recruit. This contract sales force is known as "downline" of the participant and can provide multiple levels of compensation.

Other terms used for Multilevel Marketing include pyramid selling, network marketing and referral marketing. According to the US Federal Trade Commission, some companies that use multilevel marketing exploited members of their networks and are illegal pyramid schemes.

Companies using the MLM compensation models have been a frequent subject of criticism and demands. Criticism has focused on their similarity to illegal pyramid schemes, pricing of products, high initial entry costs (for marketing kit and first products), the emphasis on recruiting others through sales real encouraging if not requiring members to buy and use the company's products, exploitation of personal relationships as sales and recruiting goals, schemes of complex and exaggerated compensation, company and / or distributor leaders making major events money out of training and materials, and techniques such as the cult that some groups use to enhance the enthusiasm and devotion of its members.

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