Multi-level Marketing Schemes
- Price: £3.60
- Published: November 2016
- Type: Business Information Factsheet
- Format: PDF
Multi-level marketing (MLM) is a method of organising a direct selling business using a network of independent distributors and direct sales agents. Instead of recruiting, training and motivating employed salespeople, a direct selling business appoints independent 'lead' distributors who are encouraged to recruit their own network of distributors and sales agents.
In any MLM scheme, distributors are able to generate income from their direct sales to consumers. They also receive payments in the form of commission on the sales achieved by sales agents they have recruited.
All distributors encourage each person they recruit, train and mentor to recruit their own distributors and sales agents. A single distributor is rewarded for sales made by their 'downline' distributors and sales agents. This means that the lead distributor in an extended multi-level network benefits from the sales made by the total network of distributors and sales agents they have created.
This factsheet is aimed at anyone considering joining an MLM scheme as a distributor. It explains how the MLM process works and provides guidance about relevant regulations. It also provides information about how to operate successfully as a distributor in an MLM network.