Multilevel selling is a marketing sales system that focuses on using independent distributors. The concept discusses the advantages and drawbacks of this approach and explains how to build multilevel sales channels effectively.
Multilevel Selling Definition
Multilevel selling, also known as direct selling and network marketing, refers to the practice of using independent distributors who are in charge of their own sales force selling company products. “These independent contractors or reps are paid a commission not only on their own sales but also on the sales of people they recruit and train” (Kotler et al., 2009, p. 557).
Multilevel Selling Description *
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Multilevel Selling References (4 of up to 20) *
- Bloch, B. (1996) Multilevel Marketing: What's the Catch?, Journal of Consumer Marketing, Vol. 13 (4), pp. 18-26.
- Blythe, J. (2010) Marketing Essentials, CIM, Oxford.
- BusinessWeek (2012) Company Overview of Unicity International, Inc., [Online], available at: http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=770170.
- Coughlan, A. T. (2012) Assessing an MLM Business: Herbalife as a Legitimate MLM, Kellogg School of Management, Northwestern University, July.
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