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How to Succeed in Network Marketing
How to Succeed in Network Marketing
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Most commonly, the salespeople are expected to sell
products directly to consumers by means of
relationship referrals and word of mouth marketing.
Some people equate MLM with direct selling, although
MLM is only one type of direct selling.
MLM companies have been a frequent subject of
criticism as well as the target of lawsuits.
Criticism has focused on their similarity to
illegal pyramid schemes, price-fixing of products,
high initial start-up costs, emphasis on recruitment
of lower-tiered salespeople over actual sales,
encouraging if not requiring salespeople to purchase
and use the company's products, potential
exploitation of personal relationships which are
used as new sales and recruiting targets, complex
and sometimes exaggerated compensation schemes,
and cult-like techniques which some groups use to
enhance their members' enthusiasm and devotion.
Not all MLM companies operate the same way, and MLM
groups have persistently denied that their techniques
are anything but legitimate business practices.
In contrast to MLM is single-level marketing. In
single-level marketing, the salesperson is rewarded
for selling the product, but not for recruiting or
sponsoring other salespeople
products directly to consumers by means of
relationship referrals and word of mouth marketing.
Some people equate MLM with direct selling, although
MLM is only one type of direct selling.
MLM companies have been a frequent subject of
criticism as well as the target of lawsuits.
Criticism has focused on their similarity to
illegal pyramid schemes, price-fixing of products,
high initial start-up costs, emphasis on recruitment
of lower-tiered salespeople over actual sales,
encouraging if not requiring salespeople to purchase
and use the company's products, potential
exploitation of personal relationships which are
used as new sales and recruiting targets, complex
and sometimes exaggerated compensation schemes,
and cult-like techniques which some groups use to
enhance their members' enthusiasm and devotion.
Not all MLM companies operate the same way, and MLM
groups have persistently denied that their techniques
are anything but legitimate business practices.
In contrast to MLM is single-level marketing. In
single-level marketing, the salesperson is rewarded
for selling the product, but not for recruiting or
sponsoring other salespeople
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