MULTI-LEVEL Marketing, also known as network sales or MLM, is a method of selling. It depends on networking between people. The sales people not only sell their products, but also recruit other salespersons, thus, bypassing the traditional form of promotion and distribution in favour of a large network of independent distributors. These independent distributors earn commission at two levels: one, commission generated from their own sales and two, a proportion of commission earned by other distributors appointed by them. None of these distributors are employees of the company to which they represent. Personal interaction is not only convenient but add value as customers get valuable knowledge of the product and its utility. Mouth publicity is the best publicity.

Normally, one is recruited as an ‘independent’ distributor of products by buying products from the one who recruits you. He or she is known as you’re ‘up line’. Distributors are not allowed to sell these products to retailers. Every distributor in turn tries to recruit more distributors. Income is generated by sales of products by the distributor plus ‘bonus’ from sales of his or her recruits and their recruit-descendent.

Multi-level marketing offers a genuine product, costs little to become a distributor, and emphasis’s selling to customers. No matter where you are and when you join, you can advance to the very highest income levels and even make more money than those above you in the network. There’s compensation based on the training and managing of your marketing team. There are number of terms used to describe business format that are essentially equivalent to multi-level marketing. Here are a few of them:
Network Marketing: Commonly used by the industry, this term implies that success depends on building a distributor network. In some cases, this is used to indicate that there is a network of product suppliers enabling distributors to offer a broader selection of products. Promoters of MLM frequently try to claim that what they have to offer is new or different from other programmes that prospective distributors are familiar with.
Consumer Direct Marketing: Promoters who are trying to differentiate themselves from MLM use this term. Essentially, the distinction is that distributors are described as consumers. At the end, the result is likely to be a problematic situation in which people are buying something, not because they really want the product or service, but because of the business opportunity that goes along with it.
Pyramid Scheme:
This is the most common term found in state order regulating this business format, and is generally objected to by the industry, on the grounds that pyramid schemes are illegal. However, pyramid sales plans are ordinarily permissible, provided that there is a bonafide product or service being sold and certain other conditions are met.
Ponzi Scheme: Often misued as a synonym for a pyramid scheme, the essential difference is that Ponzi scheme participants are not offered any direct financial incentive for bringing in other participants. However, they are likely to tell their friends about the investment opportunity. Only the operator of the Ponzi scheme normally knows the fact that early participants in a Ponzi scheme are paid off from the money collected by later participants.

Advantages of Network Marketing:
Network marketing can be done successfully on a part-time basis without giving up your current source of income until your network marketing business is generating the income you require. And the best part is that you can continue to operate indefinitely on a part-time basis.
No limit to the amount of money you can make.
The bottom line is that you’ll get out of it what you have put into it.
The beauty of it is that you are the sole in-charge. It’s up to you to take it as far as you can.
For the work you do today, you have the potential to earn money not only for today but for years to come.
Most importantly, this business can be started with very low initial investment.

How to begin with:
Virtually, all network-marketing companies require you to first purchase some kind of a ‘Starter Kit’, apart from paying the amount for entering into the channel. This is a one-time cost, and quite low. In addition, you might have monthly petty expenses such as postage, advertising, surfing, traveling, etc.

Highly Flexible:
Now the question comes if network marketing is so great, why aren’t more people involved? That can be summed up in one word: misconceptions. There are fair network marketing companies, great network marketing companies, and, yes, even some bad network marketing companies. But network marketing works! You just need to link up with the right company. In India, multi-level marketing has been slowly growing. Word of mouth has a strong impact on purchase decision of a consumer, especially in personal care and cosmetics products. Direct marketing has been extensively used in marketing of household appliances like vacuum cleaners, etc. However, given the wide spread geographical area in India, direct marketing can’t be easily used to build an extensive national reach and is likely to be used as a supplementary channel. The only answer to this is multi-level marketing.