multi-level marketing

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multi-level marketing

a system of selling a firm's product which involves a ‘pyramid’ of sales persons. Persons sell the product to friends, acquaintances etc. but are also offered a financial inducement to recruit other people as sales persons who, in turn, recruit yet more sales persons. In this way, person A recruits person B who recruits person C and so on thus creating an expanding chain of sales persons, each receiving a commission on their own sales and additionally further commissions based on the sales of people they have recruited directly or indirectly.
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References in periodicals archive ?
Among the MLM companies in the country, JC has been the most generous to its distributors, making it easy for them not just to earn a good income but also snag valuable incentives.
The FTC closely monitors MLM companies and cautions that the compensation structure, which incentivizes participants to recruit additional participants, "poses particular risks of injury." While the financial risks of getting involved with an MLM are well-documented, the personal ones are harder to quantify but are just as real.
FitzPatrick said the success stories that some of the MLM companies tout are hard to verify.
And then there's Mitt Romney, whose ties to Nu Skin and other MLM companies have yielded a torrent of campaign cash to fuel his presidential bid.
Nearly 30 MLM companies have headquarters located in the state, and many attribute the success of these businesses to Utah residents' dedication to healthy lifestyles, the multi-lingual capability of the populace and the flexible work schedules available with MLM.
While pharmacies dominate the retail space, about one-third of weight loss supplements are sold by MLM companies, who also do quite well with sales of a variety of other dietary supplements.
By contrast, industry estimates appear to be looking at annual reports from public MLM companies about their claims of sales of VMS.
The MLM companies persistence at recruiting health professionals puts the doctors at a decided disadvantage.
In response to your article by Roddy Scheer, "Greening Up the Downline, Multi-Level Marketing Comes of Age" (Consumer News, July/August 2006) I will say that unfortunately the author has not been introduced to the new generation of environmentally friendly MLM companies. The business model is based on multi-level marketing, but it allows its independent representatives to approach retail stores and markets to carry the products.
The reports on the CD cater to a wide variety of businesses, from mail order and MLM companies to retail shops and consulting firms.
The weasel words of MLM companies do not cover up the reality of this exploitation.