Variations of Multi Level Marketing Schemes

Network marketing has caught on the fancy of millions of people across the world. Amway, Tupperware, Avon, Nu skin, Herbal Life & Oriflamme etc have become house hold names globally and established themselves as premium products thanks to MLM sales and distribution strategy that have been adopted by these Companies.

The novel concept of MLM or Network marketing involves sales and distribution of products through distributors who buy products for self use and focus on recruiting and building network of distributors under them?so that the sales happen automatically when each of the distributors buys products for self use and furthers the recruitment and building of network under them. This format of selling and distribution is also called as Pyramid Selling.

Though the concept has been highly successful and the success stories of people having made their millions through their MLM network has been publicized globally, there have been lot of criticisms, cynicism and unfair trading charges that have been leveled against the MLM system.

MLM companies have been members of Direct Selling Agents Associations and have been compliant with the Trade regulations and systems as set up by the authorities for the said system.

It is seen that those companies that have continued to invest on and focus on high quality of products have thrived in the market using MLM network for selling and distributing their products.

It is only the quality of the product that enables people to become distributors and buy the product for their self use. With the amount of training and product knowledge provided to the Distributors along with their own experience of the product helps create higher business volumes through the network.

Variations of MLM Concept

The success of MLM network globally for selling the products through the Distributor chain has paved way for creation of several modified concepts or variations of MLM networks.?There have been schemes where in networks of distributors have been established for selling not one company’s products but to provide a catalogue of products of various Companies and invite distributors to buy those products that they find useful and needful.

In many cases the catalogue is circulated like a periodical and the subscription is charged when the distributors subscribe to the same. At the same time each Distributor gets a discount on the catalogue that he orders for his network and thus earns an income here too.