Multi level marketing is also known as network marketing. As the name implies, this direct form of selling involves people and building network of people as sales distributors. Typically in multi level marketing, the individuals take up distributorship from the company in the first instance. The distributor works as a sales person too. Selling happens through identifying and recruiting a new distributor for the network. Every distributor happens to become a buyer as well for the starts using the product for self, for family and friends. Thus the sales take place through self use as well as through the distributor who have been enrolled by the individual. In this case the distributor focuses on increasing the network of and recruiting other distributors rather than selling the product alone. Thus with extension of distributor network and the subsequent purchases as well as recruitment done by the chain the sponsor distributors earn rebates and commissions from the company. The income generation happens when the distributors as well as in providing sales training and sales kit to the distributors who are the salesmen. The companies spend a lot of effort in training the sales distributors and teaching them the art of communication, of building and managing relationships as well as in providing them the product training and sales training. In this effort the companies use audio visual media, books as well as marcom materials extensively. Team meetings, conferences, seminars and membership to various achievers club are the main stream activities that help build the spirit and participation of the individual distributors. What attracts people to multi level marketing is the dream of earning millions as income without having to invest anything but one’s effort and time and without having to sacrifice one’s career or other priorities of life.
