Multi-Level Marketing as a business model

• Main Authors: Bogdan Gregor, Aron-Axel Wadlewski
• Format: Article
• Language: English
• Published: The Institute of Aviation 2013-03-01
• Series: Marketing of Scientific and Research Organisations
• Subjects: multi level marketing; Uni-Level system; binary system; matrix system; business; distribution; sales network
• Online Access: http://minib.pl/en/multi-level-marketing-as-business-model/

Multi Level Marketing is a very popular business model in the Western countries. It is a kind of hybrid of the method of distribution of goods and the method of building a sales network. It is one of the safest (carries a very low risk) ways of conducting a business activity. The knowledge about functioning of this business model, both among theoreticians (scanty literature on the subject) and practitioners, is still insufficient in Poland. Thus, the presented paper has been prepared as — in the Authors' opinion — it, at least infinitesimally, bridges the gap in the recognition of Multi Level Marketing issues. The aim of the study was, first of all, to describe Multi Level Marketing, to indicate practical benefits of this business model as well as to present basic systems of calculating a commission, which are used in marketing plans of companies. The discussion was based on the study of literature and the knowledge gained in the course of free-form interviews with the leaders of the sector.