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What is multi-level marketing (MLM)?

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Question added by Rahaf Masri , Account Sales Director , MT3 Digital
Date Posted: 2015/07/23
Muhammad Adeel
by Muhammad Adeel , Sales And Marketing Executive , TANZEEM HEAVY EQUIPMENT RENTAL LLC

Multilevel marketing (also called network marketing), describes systems in which companies contract with individuals to sell a set of products door to door or office to office. It is called multilevel because a contractor can also invite others to work and earn money on their performance.

MLM is a sales system under which the salesperson receives a commission on his or her own sales and a smaller commission on the sales from each person he or she convinces to become a salesperson.

Sashikanta Mohapatra
by Sashikanta Mohapatra , Manager - Business Development/Sales Process Deployment , Vodafone Spacetel Limited

Multi-Level Marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant's "downline", and can provide multiple levels of compensation.

PRADEEP MEHRA
by PRADEEP MEHRA , CEO , Angel international Inc.

Thank you for your invite. MLM is a marketing model where products are sold through direct marketing by independent  sales persons who work on free lance basis. They are not on the payroll of the company who's products they sell. They are paid commission on the sales made by them also under MLM model they are expected to enroll more sales person under their team and are entitled for commission on the sales made by the sales person enrolled by them. This marketing model is followed by Amway and World Book Encyclopedia that I am very well aware of.  

Deleted user
by Deleted user

I rreally and totally agree with you 

Bhojraj      Dahal
by Bhojraj Dahal , supply chain coordinator , L’Oréal

A Good Question Rahaf ,

 

Multi-level marketing is one type of direct selling MLM is a business strategy where multiple People are promoting a company product as a representative, distributor or affiliate.

 

Find here a nice demo about Multiple Level Marketing . MLM

Mikhail Krishnani
by Mikhail Krishnani , Dealer Development Intern , AVME Volkswagen

A marketing strategy in which you are compensated for the sales you provide , in addition to the sales of the people you have recruited. 

Muhammad Yousaf Khokhar
by Muhammad Yousaf Khokhar , Director Marketing And Sales , Relaxsit Private Limited

Most of the companies who have chosen the Distributors as their Distribution System are engaged in the Multi Level Marketing.  Distributors recruit the sales team which is not part of the regular sales team of the company.  Normally they get commission over the sales they made. 

The sales force of the company who are getting salaries from the company upon the sales they are making but also they get incentives over the sales made by the Distributors sales team as they fall in the territory of a particular sales person,

Jeffer Basilan
by Jeffer Basilan , ICT Systems Administrator , Rezayat IT and Communications Company - Rezayat Group

It covers different kinds of medium.

Hatem Al Sharif
by Hatem Al Sharif , Senior Digital Executive , TRACCS

It can be equivalent to a pyramid scheme. distributors sell products to the public and earn a commission based on the sales of the people they recruit as well as their own sales.

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