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Multi-Level Marketing (MLM) occupies a special place among modern methods of selling goods and services. This practice is spreading very quickly in the world, but at the same time it remains incomprehensible to many people.
Someone sees MLM as a fashion trend of the eighties, but its importance in the modern business world is much greater. MLM companies in the 90s had a turnover of more than 100 billion dollars a year and this cannot be underestimated.
The purpose of this book is to show you what MLM is with the help of illustrations and examples. And we will also show you how to explain the essence of Multi-Level Marketing to other people in an easy and understandable way.
This is a practical guide. Written to help educate your business partners. We recommend adding this book to the "package" of initial information for those who take the first steps in this business.
Since 1973, Don Failla has been constantly working on the material for Lessons on Napkins.
Before diving into the details of Lessons on Napkins, let me answer the main question: What is MLM? In the book you will meet the abbreviation MLM and Multi-Level Marketing. Marketing (selling) means the delivery of goods or services from the producer to the consumer. The expression Multi-Level (multi-level) means a system of encouraging people who deliver goods or services to consumers. Multi means "more than one". Level rather means "generation".
Thus, it is safe to call this sales system Multi Generation Marketing (selling with the help of several generations). But we will stop at the expression Multi-Level, as the most common. So common that a large number!!! illegal systems for the distribution of goods and financial pyramids also began to call themselves "Multi-Level programs." This led to the fact that Multi-Level companies undeservedly began to be identified with these dubious structures, and therefore many new MLM companies that appear on the market recently are forced to invent other names for their sales systems.
There are three main ways of selling goods and services:
1. Retail trade. This method, I am sure, is familiar to everyone: a department store, a vegetable shop, we go in and buy what we see.
2. Direct (direct) sales. This can be insurance, sale of kitchen equipment, etc. An example of direct sales is cosmetic products, or the exhibition-sale of home kitchen stoves.
3. Multi-level sales or Multi-Level Marketing (MLM) is what is explained in detail in this book. This form of sales should not be confused with the previous two methods, especially direct sales, which are also sometimes mistakenly classified as MLM.
The fourth method of sales is mail order, which also cannot be attributed to the MLM system. It's more like retail.
The fifth type of sale, which is also often confused with MLM, is the already mentioned Financial Pyramid. Its downside is that the activity of Financial Pyramids is illegal. The main reason for banning their activity is that this system is not suitable for promoting goods or services. If the product is not promoted, you cannot talk about marketing, especially multi-level marketing. It is possible that some pyramids are characterized by multilevelness, but in no way marketing.
The main misunderstanding comes from people not seeing the difference between MLM and direct selling.
I also recommend listening to one of the most popular audiobooks "The Richest Man in Babylon" • Video
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