I just have to disagree with your definition of MLM and network marketing.
MLM is a form of network marketing with many different commission plans. Affiliate marketing also has various forms of commission plans also. There are tiered affiliate commission plans as well, though they are not like the typical MLM.
There are performance bonus structures all over the business world, i.e. Your team sells better, so much, saves the company so much money, or whatever you get so much in bonus commissions. This isn't multilevel or maybe it is to a degree in some instances, but it is a type of incentive used to ensure growth of the particular business....there are many other types of bonuses in business.
In much the same way, a MLMer is given bonuses for building a salesteam and a customer base for their team's performance. Just as you said about GM- they can't reach as far as their dealers can. MLM companies choose to use people, not dealerships to spread the word about their products,etc.
(BTW, there is a bit of multilevel in that....the managers make commissions [albeit small) off the salespeople's efforts and the dealership owner(s) does as well....]
A good MLM is not selling cheap products or services just to steal people's money or to run a pyramid scheme. A good MLM will have a legitimate product or they will not stay in business very long- and many don't.....just as many other types of businesses do not stay in business. there can be many reasons for this....not always the product or structure, but poor management,etc.
Most companies go to great and expensive lengths to get the name of their product out and consumers desiring that product. MLM companies use networking and compensation of their customers for bringing in other customers,etc. as their marketing strategy-therefore the expense of advertising goes to the people in the company or the team and not CBS or major newspapers,etc.
There have been pyramid schemes in the history of MLM and that is what gives it a bad name.
However, a properly ran and lawfully structured (there are pyramid scheme laws they must adhere to or be forced to shut down) MLM is a great way for a company to market a product or service.
The Multi-level type of marketing is still very much networking with the compensation structure being different.
Most of us have a slighted view of MLM because there have been so many scams, but there have been scams and scandals in just about any company (think Enron) and we must not throw the baby out with the bath water.
My husband has held a very slanted view of MLM (ever since a bunch of Amway people hassled him to death about 15 years ago) until recently. It took a long time to understand that MLMs have come a long way...partly due to laws that now govern them and partly due to the learning curve of business managers,etc.
There are a lot of MLMs out there and many still have a lot of issues.....
Just as I choose not to go work for one brick and mortar company over another, I can chose any MLM over another.
If I am wrong about this view, please put me in the proper perspective!
Thanks again,Ed...you are a valuable asset to this group.
Sincerely,
Kim
CanDoMom
http://www.TheCanDoMom.com
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