How does multi-level marketing operate?
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If I buy $200 of stuff from Amway this month, I'll get a 3% bonus check (3% of $200 = $6). If I share the opportunity with nine others, and we each buy $200 of stuff from Amway this month, they each were responsible for $200 and will get $6, but I'm responsible for $2000, moving me to the 12% level. I get $240. However, I'm responsible for paying the bonuses of the people right below me - $54 - so I keep $186. I make more because I did more, I found nine people who wanted to buy at a discount and get a bonus for doing it. After I reach the 25% bonus level there are other bonuses that kick in, but they're all based on the volume of product flow, not on signing people up or having lots of people (Bob Queenan, personal correspondence). [April 7, 2004. Gary Elliot Murway writes: Please correct: distributors/IBOs no longer need to pay downline bonuses. Quixtar can pay each IBO directly.]\n\nbelow link for more info.
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Sorry, need more information from your post. \n\nItemizing basic marketing functions depends on the marketing dept and industry you are in. \n\nTypically a marketing dept needs the following:\n1) Marketing Communications (design and Brand) - field marketing\n2) Interactive \n3) Analysis and Reporting\n4) Industry and Primary Research\n5) Direct Marketing and Lead Generation (optional)\n6) Business Development/Partnership marketing\n7) Event Marketing (optional)
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Pyramids are illegal and network marketing is a great way to do business.\n\nPyramids... are generally set up so that there is more emphasis on the business opportunity, training and seminars, $$$ for the "Upline". Usually the only people who make any $$$ are those who got in first.... those on the bottom do most of the work with very little returns for their efforts. (AND one can't say this often enough...THEY ARE ILLEGAL!!!!!)\n\nNetworkmarketing on the other hand: We are  all networking... we have always done it from the time we could talk.  If Sally asked you where you got your lunch box, you advertised for K-mart or where ever mom and dad bought it for you.  As adults we refer people to every profession:  doctors, mechanics, hair salons... or even refer people to a particular STORE like Target or the Macy's THEN tell them which PRODUCT to buy which could come from Proctor and Gamble or Microsoft.  We will never stop networking, it's a part of life.\n\nHope this helps
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It depends on your target audience. I would say through websites/internet but then again, if you're selling to old people, that might not work out very well. That's why big companies like Nike, Apple, McDonald's.. etc have always mixed it up with TV,internet, billboards,.. etc
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This is a very broad scoping question.  Each specific industry will spend a different percentage of gross revenue on advertising.  If a company has good exposure to a physical location, lets say they are located on a busy street and they are a retailer, they don't need a large budget for advertising.  Furthermore, product specific companies will fluxuate advertising costs based on where they are in the product life cycle (Educational advertising costs may be larger than other costs).  \n\nThere are two primary ways that a company can decide budgets for advertising; top-down and bottom-up.  Imagine upper management on top and marketers on bottom.  In a bottom up situation, the marketers will design the budget and propose it to management.  In a top-down approach, the management will give marketers a budget cap.  From here, it gets more intricate and complex as to how actual figures are determined, but they are mainly determined by an analysis of your target market and the eficacy of different advertising channels in communicating the marketing message to said audiences.\n\nOverall, advertising is normally one of the largest expenditures that a company makes.  Consumer electronics companies like Sony and Panasonic spend a large amount on marketing.  Advertising is a part of marketing and represents a large portion of the marketing budget.  But, again, it all depends on the specific company and its current exposure and what point on the PLC you are talking about.  Answer those questions and you should be able to find a more specific answer via your resources.
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Check the site here for information BEFORE you invest anything with any company: http://www.mlmwatch.org/\n\nAlso here is informatin from the FTC (Federal Trade Commission)\n\nhttp://www.ftc.gov/bcp/conline/pubs/aler...\n\nThe Bottom Line About Multilevel Marketing Plans\nMultilevel or "network" marketing plans are a way of selling goods or services through distributors. These plans typically promise that if you sign up as a distributor, you'll receive commissions - for your sales and those of the people you recruit to become distributors. These recruits sometimes are referred to as your "downline." \n\nSome multilevel marketing plans are legitimate. However, others are illegal pyramid schemes. In pyramids, commissions are based on the number of distributors recruited. Most of the product sales are made to these distributors - not to consumers in general. The underlying goods and services, which vary from vitamins to car leases, serve only to make the schemes look legitimate. \n\nJoining a pyramid is risky because the vast majority of participants lose money to pay for the rewards of a lucky few. Most people end up with nothing to show for their money except the expensive products or marketing materials they're pressured to buy. \n\nIf you're thinking about joining what appears to be a legitimate multilevel marketing plan, take time to learn about the plan. What's the company's track record? What products does it sell? Does it sell products to the public-at-large? Does it have the evidence to back up the claims it makes about its product? Is the product competitively priced? Is it likely to appeal to a large customer base? How much is the investment to join the plan? Is there a minimum monthly sales commitment to earn a commission? Will you be required to recruit new distributors to earn your commission?\n\nBe skeptical if a distributor tells you that for the price of a "start-up kit" of inventory and sales literature - and sometimes a commitment to sell a specific amount of the product or service each month - you'll be on the road to riches. Often consumers spend a lot of money to "build their business" by participating in training programs, buying sales leads or purchasing the products themselves. Too often, these purchases are all they ever see for their investments. \n\nYour Responsibilities\nIf you decide to become a distributor, you are legally responsible for the claims you make about the company, its product and the business opportunities it offers. That applies even if you're repeating claims you read in a company brochure or advertising flyer. The Federal Trade Commission advises you to verify the research behind any claims about a product's performance before repeating those claims to a potential customer. \n\nIn addition, if you solicit new distributors, you are responsible for the claims you make about a distributor's earnings potential. Be sure to represent the opportunity honestly and avoid making unrealistic promises. If those promises fall through, remember that you could be held liable. \n\nEvaluating a Plan\nThe FTC suggests that you use common sense when evaluating a multilevel marketing opportunity and consider these tips as you make your decision: \n\nAvoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid. \n\nBeware of plans that ask new distributors to purchase expensive products and marketing materials. These plans may be pyramids in disguise. \n\nBe cautious of plans that claim you will make money through continued growth of your downline, that is, the number of distributors you recruit. \n\nBeware of plans that claim to sell miracle products or promise enormous earnings. Ask the promoter to substantiate claims. \n\nBeware of shills - "decoy" references paid by a plan's promoter to lie about their earnings through the plan. \n\nDon't pay or sign any contr
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Unfortunately, most people are uneducated in what a pyramid scheme really is.  All pyramids are illegal.  Multilevel Marketing is not a pyramid scheme and is obviously totally legal or it would be shut down before it ever got started.\nMultilevel marketing is just a "different" method of marketing a product than commercial. With a commercial business, eg your local grocery chain, they choose to market products in a store setting which ensures regular customers as well as convenience.  Now the Manager and the guys at the top earn the best income, cashiers and stock people earn close to minimum.  This is because they have a great deal of overhead, the store itself, employees, lights, advertising as well as logistics.\nMultilevel companies market in a different way. They choose to not have a store or do advertising commercially, instead they have the people in the field do the selling and pay them to ensure the product gets into peoples homes.  The people in the field essentially own their own business and one of the perks is tax write-offs, just like the commercial businesses have.\nSo you see it is just a different way of directing the dollar but still marketing just the same.\nThe reason MLM companies choose to do business that way is because they normally have a unique product that they don't want sitting on the shelves in a store. They want people to put the word out on what their experience is with the product and that is done by presenting it personally to people.\nI have found great success doing this and part of my job is to ensure the people I bring into the business also experience success.  As long as they are treating it like a true business and putting work into it, they cannot fail because their support team is there to help them every step of the way.
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Vertical selling (or vertical marketing) is selling to a specific industry. An example would be a company that makes electrical cable that only markets that cable to the aerospace industry, or the health care appliance industry. It is easier to identify the potential clients as well as the potential competitors in a vertical marketing strategy and makes it possible to tightly focus the marketing effort and offer customers a highly specific solution to their needs.
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Just take the sales for that particular company and divide that by the total industry sales. Now if you want to do this at the agent level, choose a business segment/product line in a particular company first. Then take the total base for that segment/product line and do the math.\n\nThis can be done for volume units or for revenue units.
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Without knowing what organization this is exactly and what it does or provides to whom, it is hard to answer in specifics. However, I can tell you that internet advertising&#92;presence is NOT completely a stand alone solution. You need other pieces to generate web traffic. While you can opt to try different internet mediums from meta-tags linked to search engines as first or primary results by location or industries, and banner advertising on other sites, what has proved more effective are other traditional media to drive web traffic. From mailings, to print ads or TV and radio announcements.\n\nI know it is a bit hard to hear if you had envisioned that by internet alone one could bring thier message to the masses or a targeted audiance which would be SO MUCH cheaper...but that is not the true dynamic of things. There are exceptions, however, but, by and large this is how it works. If you would like to inform me further of your organization, what it does and offers to whom...then I could help you further.
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Your question is too vague.  There are many more than five "philosophies" that can guide organizations in carrying out their marketing activities.\n\nExplain.
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Push and pull are two old approaches through which brands operate. While pull makes you a customer oriented brand communicating brand attributes directly to target market so that these attributes will 'pull' customers to the shops/outlets; push strategy targets the middlemen (shopkeepers, stockists) to really 'push' your brand via recommendations, word-of-mouth, tactical discounts, freebies etc. \n\nBoth of them works, depending on nature of product, product lifecycle stage, competition etc.\n\nProfiling (a better term is database marketing) is a newer approach that enables brands/shops to create profiles of customers and targeting them via that. Database marketing in the retail world is a key factor in boosting profits. Retailers specially spend massive amounts analyzing their retail operations. Market studies, periodic customer service surveys, and customer loyalty programs are just some of the tactics under this strategy.
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There are many ways to sell more products than before. Here are few that I could think of -\n\n1: Plan - Be sure that have done your paperwork and know all the information about the product you are going to sell. You need to know what kind of audience you are going to target and to findout what is the best way to approach them.\n\n2: Market, From step one, once you have the information about who you are going to target, you need to find a way to approach them. In our everyday life, the most common ways are flyers, local newspapers and word of mouth.\n\n3: Great service - Be sure to provide the best service possible. People love to return to someone who treated them more than just a customer. Not only that, they are rocommend you to others they know as well. \n\nThese are few points that I have learned in my journey to run my own business and thankfully, my small business did a gross of $2.5Mil this year so far.
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The answer will vary by industry and/or product line.  In most industries it is assumed that sales to existing customers come much easier and with much less expense than to new customers.  But in some industries where repeat business is rare, this consideration doesn't even occur.\n\nAnalyzing this would be next to impossible to accomplish at a national or even regional level.  Rather it would be more likely an industry association will survey a small segment of its membership and then apply the results to the entire industry.  Which industries would even do this?  I don't know.
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MULTI LEVEL MARKETING(M L M)\n\nit is indeed a very good concept fpr getting large scale success but one has to toil a lot to achieve in this multi level marketing......\n\nadvantages:\n1.not wasting money un necessarily for advertising:\n2.here the consumer is the dealer....benefit is directly acheived without any brokers.......
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How To Choose A Multi Level Marketing Company\nBy: Carlos Scarpero\n\nIf you have read any of the many financial books on the market today, you will discover that the multi level marketing or network marketing industry is exploding. There are hundreds of companies out there. But how do you choose the one that’s best for you? This article will give you some tips and insights to make your decision easier.\n\nProduct\nThe product is the most important thing that you need to consider when choosing a multi level marketing company. You must be passionate about the product. Don’t just like the product or kind of like it, but totally and completely passionate about it. Why is this important? You are going to be recommending this product to your friends and family. Don’t you think that they will be able to tell if you aren’t passionate about it? Sure they will! Any hint of doubt will inflect on your voice, your mannerisms, and your ability to close the deal.\n\nFirst of all, you should use the product for 30 days before you sign up as a rep. If you like it so much that you would use it even if you weren’t a reseller, then you have a winner.\n\nAsk yourself this: If I tell all my friends and family about this product and they do not buy it, will I really care? If you truly are with the right product, you will not care. You will just keep on using it.\n\nOther product consideration questions:\nWhat other products are similar to mine in the marketplace and how does the pricing and quality compare? Is the product unique? What do I like best about my product? What do I like least about it? It should be a unique product or service with little or no competition.\n\nHow will I market this product? Online? Offline? Can you think of a marketing plan in 5 minutes or less? If you have to think about it, then it’s not the right product. If you have 100 ideas, just flowing out of your head, then you are on the right track.\n\nWhat is your personality? Are you a fitness nut? Then maybe nutritional products are right for you? Are you ticked off at the current legal system? Then maybe pre paid legal. The product must match your personality.\n\nCompany\n\nLearn what you can about the company. Who are the founders? What experience do they have? How long have they been in business? If you get a new startup then you might have to deal with growing pains and lack of support. If you are going with an established company, then your growth potential is more limited. It’s best to stick with a company that is one to five years old.\n\nThe company should be keeping up with the latest technology. Does the company have a website? How is it? Can people sign up directly on the website? Do they have an email auto responder system set up to follow up on your leads? Do you get a custom web page? Do they set that up for free?\n\nAnother important consideration is training. What kind of training does the company provide? Do you have to pay for it? How much is it? The training cost should be less than $100. If they are constantly pressuring you into going to expensive trainings that are $500-3000 (and there are companies out there that do that), then stay away!\n\nWhat kind of people are involved? Anyone successful or famous? Anyone in there that has already made a fortune somewhere else? Has anyone in the company written any mlm related books?\n\nThe next area is compensation. Study the compensation plan. Run the numbers to figure out what you need to do to make each level. Talk to others in the company and figure out how much they are making. Ask them to show you their check. Make sure that they are making the check from actual product sales and not from sticking product in their garage.\n\nDo your due diligence on the company. The following are a few websites you should look at in your due diligence:\n\nBetter Business Bureau- www.bbb.org\nBad Business Bureau- www.badbusinessbureau.org\nFederal Trade Commission- www.ftc.gov\n\nFinally, ask around. Do a goo
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Look for a book named "The Business School" by Robert Kiyosaki.  He did explain it all.\n\nGenerally, the different are:\n1.  Network marketing plan is fair to everyone.  Pyramid marketing isn't.  It's mean whoever join first, will be always have higher pin or level than the person join under him/her.\n2.  There is no entrance fee for Network marketing.  you only need to pay a little amount to be a member.  But in pryamid marketing you will need to pay certain amount to join it and your upline will earn some from that amount.  Besides, the company may ask you to buy(or try in their opinion) lot of products before you can be a member.\n3.  You won't need to keep the stock in order to sell your product. in pryamid market you will need to have a place to put the product and sell it from there.\n4.  Some pyramid marketing, there is no product involve at all.  they only earn from membership fee.\n\nBesides, which company are you looking into? I can share some of my experience with you. Email me at tklynx@hotmail.com