Multi-Level Marketing

A strategy that 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 known as a 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 marketing is a legitimate business strategy, though it is controversial. One problem is that pyramid schemes, which use money from new recruits to pay the people at the top, often take advantage of people by pretending to be engaged in legitimate multi-level marketing. Pyramid schemes can sometimes be spotted by their greater focus on recruitment than on product sales.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Multi-level marketing — Marketing Key concepts Product marketing · Pricing …   Wikipedia

  • multi-level marketing — An increasingly common way of selling goods is through trading schemes, which operate on more than one level. Participants (or downliners ) in such schemes buy goods from the scheme organiser or other participants and then sell them to the… …   Law dictionary

  • Multi-Level-Marketing — Als Netzwerk Marketing (engl.: Network Marketing, auch: Multi Level Marketing (MLM), Empfehlungsmarketing oder Strukturvertrieb, seltener Mundpropaganda) wird im Marketing das Generieren von Referenzen im Sinne der von einer Vertrauensperson… …   Deutsch Wikipedia

  • Multi Level Marketing — Als Netzwerk Marketing (engl.: Network Marketing, auch: Multi Level Marketing (MLM), Empfehlungsmarketing oder Strukturvertrieb, seltener Mundpropaganda) wird im Marketing das Generieren von Referenzen im Sinne der von einer Vertrauensperson… …   Deutsch Wikipedia

  • multi-level marketing — N UNCOUNT Multi level marketing is a marketing technique which involves people buying a product, then earning a commission by selling it to their friends. The abbreviation MLM is also used. ...multi level marketing schemes …   English dictionary

  • multi-level marketing —  Direct marketing system where sellers recruit other people into the organization as sales representatives, earning a commission on their sales. Critics refer to such practices as PYRAMIDING; multi level marketing sounds more professional …   American business jargon

  • Multi-Level-Marketing — Form des Direktvertriebs, bei der bereits für ein Unternehmen tätige Verkäufer weitere Verkaufsmitarbeiter gewinnen (Subunternehmer) und die Vergütungen der Verkäufer der Vorstufen von der Verkaufstätigkeit der nachgelagerten Verkäuferstufen… …   Lexikon der Economics

  • Multi Level Marketing — Mundpropaganda (selten); Netzwerk Marketing; Empfehlungsmarketing; Strukturvertrieb; Network Marketing (engl.) …   Universal-Lexikon

  • multi-level marketing — noun 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. See Also: direct selling, network marketing …   Wiktionary

  • List of multi-level marketing companies — This is a list of Wikipedia pages about companies which use multi level marketing (also known as network marketing,[1][2][3][4] …   Wikipedia

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