Multi Level Marketing English

MAS SA

Multi Level Marketing Administration

Traditional marketing follows the traditional scheme of Manufacturer - Commercial company - Distributors - Resellers. Multi Level Marketing (MLM) is a selling method used since decades by companies like Tuppeware Inc., etc. In MLM each reseller can set up his own reseller's network. He can have a double activity: reseller and manager of a reseller's network. He is rewarded for his own selling and for the selling of his network.

Advantages

The advantage of MLM is a rapidly developing network. The commercial company is rapidly at the head of a large network of hundred of resellers. However MLM needs a lot of administrative work. The commissions of each sell must be shared between many people according to their position in the network. This involves millions of calculations. MLADMIN is a software for the administration of a MLM. MLADMIN takes record of the position of each reseller in the network, that depends of the reseller's sponsor (who is himself a reseller) and of the resellers he has himself sponsored. The commissions of each sell his shared to the many resellers. Every reseller receives a detailed account of his selling and of the selling of his network. With MLADMIN the company can freely decide of the structure of the MLM and of the sharing of commissions.

Not a pyramidal network

Without proper administration the network collapse because the unpaid resellers give up and the network degenerate in a pyramidal scheme. Pyramid network a prohibited by law in certain countries. In the Multi Level Marketing the number of levels under each reseller is restricted to 4 or 5, like in the traditional marketing. The commercial company is the only responsible of the commissioning of all the resellers and of the products. The commissions each reseller receive do not depend of his position in the general network (no pyramid effect) but only of his selling and of the selling of his network.

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