In his book, According to Kotler, Paul Kotler defined this subject as follows: "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." The sales representative thus has incentives to enlarge the sales force and to earn added commissions on the sales of his or her recruits.
Network marketing is a business model that depends upon a network of distributors for growth, such as in multilevel marketing. It is a direct selling method that features independent agents that make up a distribution network for goods and services. Some network marketing systems are based on tiers that denote how many levels deep a sales and distribution network goes. In two-tier or multi-tier examples, the people that make up the top tier of a distribution network are also encouraged to build and manage their own networks of salespeople. Each network creator (or "upline") then earns a commission on their sales revenue, as well as on the sales revenue of the network they have created, otherwise known as "downline." There are many examples of reputable network marketing operations, though some have been criticized of being pyramid schemes and have been banned in some countries as a conduit for consumer fraud.
In Europa ontstond in 1991 de FEDSA (Federation of European Direct Selling Associations). Zij behartigde de belangen van netwerkmarketingorganisaties. In 2011 veranderde de organisatie haar naam naar SELDIA (The European Direct Selling Association). In 2015 worden 28 landelijke DSA's (Direct Seller Associations) en 16 zakelijke ondernemingen zoals Amway vertegenwoordigd.
Multi-level marketing is a strategy some direct-sales companies use to encourage their existing distributors to recruit new distributors by paying the existing distributors a percentage of their recruits' sales. The recruits are the distributor's "downline." All distributors also make money through direct sales of products to customers. Amway is an example of a well-known direct-sales company that uses multi-level marketing.
Multi-level market (MLM) or network marketing is an American institution. Companies like Amway, Tupperware, Herbalife, Avon, Mary Kay and The Pampered Chef support huge networks of distributors and recruits who sell every type of product from dietary supplements to kitchenware to beauty products. Salespeople are called independent business owners (IBO) and generally work from their homes.
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Network marketing programs feature a low upfront investment--usually only a few hundred dollars for the purchase of a product sample kit--and the opportunity to sell a product line directly to friend, family and other personal contacts. Most network marketing programs also ask participants to recruit other sales representatives. The recruits constitute a rep's "downline," and their sales generate income for those above them in the program.
But if you understand how traditional direct selling used to work before MLMs, you’ll see that they really aren’t in the direct sales biz. If your grandpa sold encyclopedias door-to-door when he was in college, ask him if he was required to buy the encyclopedia sets himself in order to sell them to others. Ask him if he had to personally purchase a certain number of encyclopedias a month or year to keep his job. And then ask him if he was pressured to recruit more salesmen beneath him. The answer to all of those questions will be no. He didn’t make any money recruiting people to be salesmen — he made his money selling encyclopedias to housewives.
Mike, what kind of breast cancer (invasive ductal, I presume)? How many of her lymph nodes were positive? How big was the primary tumor? Reason I ask is that in women with Stage I or IIA tumors that are estrogen-and progesterone-receptor-positive and HER2-negative (ER+/PR+/HER2-) with three or fewer positive lymph nodes, there is a genomic assay test on a sample of the tumor, called OncotypeDX, that will tell doctors whether chemo is necessary or would even work at all. Medicare covers that test 100%.That type of breast cancer mentioned above, which I had as Stage IA, is treated in postmenopausal women with anti-estrogen drugs called aromatase inhibitors(aka AIs: anastrazole, letrozole, or exemestane)which have as a side effect joint pain. CBD oil is effective for this joint pain it is not, I repeat, NOT a substitute for chemo, radiation or these anti-estrogen drugs.So don’t assume your mom’s cancer will require chemo; but if it does, CBD helps with those side effects as well. If she lives in a state where medical marijuana is legal, there are doctors who sub-specialize in certifying applications for a medical marijuana card, and in the interim before the card is issued can advise as to the appropriate dose of CBD oil (legal and over-the-counter in all 50 states). Some (though not most) medical oncologists will certify their own patients’ medical marijuana card applications so she need not seek out another doctor; and will advise the appropriate dose for her symptoms. Once she gets her card, the “budtenders” in the licensed dispensaries can advise her as to the right CBD product (with or without THC), strength, and dosage. If she lives in a state where recreational weed is legal, the “budtenders” in the marijuana shops can steer her to the right strength of CBD oil and the right dosage.
CBD Oil, derived from agricultural hemp, has been widely recognized for its many benefits on human health. It has grown in popularity amongst the medical community as a key supplement for maintaining homeostasis. Because CBD oil has the ability to talk to nearly every organ system in the body via the Endocannabinoid System (ECS) this plant-based nutrient plays a key role in optimizing balance and enhancing quality of life.
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The gist of the matter is that the courts have found that as long as an MLM can show that its primary purpose is to sell product (even to people within the MLM) and not recruitment of distributors, the company is considered a legitimate business and not a pyramid scheme. But this line is really fuzzy, and little to no effort is made by law enforcement agencies to make companies prove that they emphasize retail over recruitment.
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Wild claims is seen most in health and wellness companies in which reps boast that their products cure ailments or work miracles. Outlandish hype is a red flag in any industry, including direct sales. A successful business is founded on quality products. If the company you're considering joining has bizarre products or products that seem too good to be true, use caution. The last thing you want your name tied to is a faulty product or a product which is the focus of litigation.
De opkomst van multi-level marketing in Europa leidde in 1999 tot aanbevelingen van de Europese Commissie om wetgeving in alle landen van de Europese Unie gelijk te trekken. Hierbij werd ook rekening gehouden met de bestaande wetgeving op het gebied van kansspelen en piramidespelen. Essentieel is echter dat bij multi-level marketing het grootste deel van de winst tot stand komt door verkoop van producten voor een reële prijs en niet door werving van nieuwe wederverkopers. Het gevaar van een piramidespel blijft dus op de achtergrond aanwezig. De bestaande wetgevingen hielden ook te weinig of geen rekening met het feit dat een persoon tegelijk koper en verkoper kon zijn van een product. Dit gaf, gecombineerd met de vaak geringe ervaring van veel MLM-verkopers en het risico van een piramidespel, reden tot zorg.
Some companies will hide under a cloak of darkness that the Internet can provide, but it’s a pretty good sign if the company lists an honest-to-goodness phone number you can use to reach real people. The companies with inferior products will often be very difficult to reach. Before ordering, try to reach out to the company. If someone picks up the phone or gets back to you in a timely manner, you’ve probably found a company that not only takes accountability seriously, but cares about their customers and the quality of their products.
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The U.S. Federal Trade Commission (FTC) states: "Steer clear of multilevel marketing plans that pay commissions for recruiting new distributors. They're actually illegal pyramid schemes. Why is pyramiding dangerous? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people—except perhaps those at the very top of the pyramid—end up empty-handed."
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