DD: Emerging Trends in Business
Network Marketing aka Multilevel Marketing (MLM) Direct marketing by the manufacturer by recruiting independent business persons who act as distributors of company’s products. Can reach potential customers that a company otherwise wouldn’t reach with traditional online or offline marketing methods. The distributors purchase products at wholesale prices and may either use discounted products themselves or retail the products to others for a profit. They receive a commission on their personal volume – the value of every product they personally buy or sell. Also receive a net commission on the total turnover they created from their group personal volume. The network grows continually. The distribution channel is at zero level where the firm is selling goods to distributors directly – reducing additional overheads of the firm. Lower overhead costs as no infrastructure is required. However, sales forecasting is difficult, and distributors may also become the largest customers and tak...