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Direct Marketing against Multi-Level Marketing, Pullback and Implication

Volume: 63  ,  Issue: 1 , October    Published Date: 06 November 2020
Publisher Name: IJRP
Views: 62  ,  Download: 26
DOI: 10.47119/IJRP1006311020201490

Authors

# Author Name
1 Ajayi Olalekan Ezekiel
2 Oyedele Toba

Abstract

The goal of this paper is to further explain the process of direct marketing and multi-level marketing. Direct marketing is a type of advertising that uses tangible materials such as catalogs and fliers to communicate information about a particular product or service to potential customers. The information is aimed at potential customers, thereby allowing for a more accurate forecast of sales. This means a cost-effective means of advertisement to corporations or organizations with a small advertising budget. Multilevel Marketing (MLM) is, on the other hand, a technique for sales distributors to concentrate more on recruiting new members who will become sales distributors themselves. However, good recruiting is crucial for the very survival of most direct selling companies, including multi-level marketing organizations, because the viability of these entities depends on the ability to make more and more new hires to replace those who have ceased to be hired. MLM distributors may have a partnership with both their "upline" sponsor and their "downline" contractors. They often regularly cooperate through joint recruitment meetings and sales training sessions. Distributors of multi-level marketing companies foster a mixture of friendship and instrumentality in expanding networks, and the long-term incentive of these MLM chains is that, with each new individual recruited, the recruiter will receive a certain amount of money each time their downline sells something. The balance is used to pay the salaries of higher-level officials in the MLM hierarchy. “Some MLM initiatives have all the implications and characteristics of the pyramid scheme, but the MLM industry has nevertheless been allowed to continue and flourish, and this paper concludes that, while the MLM industry is controversial, it must be evaluated and assessed from a number of points of view, such as morality, culture and the country in which it is implemented.

Keywords

References

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