Avon business model is based on a pyramid-like structure, similarly as other MLM models⦠1.1) Introduction to MLM: Multi-level marketing (MLM), also known as Network Marketing, Matrix Marketing or Chain Marketing. When the Federal and State legal definitions are applied, it is clear that some companies have been incorrectly branded as MLM ⦠with the annual revenue of $5,72 billion it is a perfect example of a successful multi-level marketing business. The brilliance of Multi-Level marketing, which is also known as Network Marketing, has been subverted and lumped in with other, less savory models ⦠By transferring that job to a distributor, a company saves an ⦠The multi-level marketing business model has the lowest risk of loss. One of the main factors for obtaining MLM success and its advantages is the actual MLM ⦠Multi-level marketing is a diverse and varied industry, employing many different structures and methods of selling. HISTORY MLM started in the US, in 1959, by business partners Rich DeVos and Jay VanAndel, originally with just one single product and a new and unique business ⦠It forms its own network of people to promote the business or to have a direct sale of the product or service. Although there may be significant differences in how multi-level marketers sell their ⦠MLM business model ⦠When employed correctly, multilevel marketing can be and usually is a successful, smart business strategy. Multi level marketing 1. Multi-Level Marketing is a business model that has been around for a long time, yet it is also one that will often gain eye rolls and wallet clutching. MLM ⦠It is a business-distribution model that allows a company to market its products directly to consumers by means of relationship referrals and direct selling. Nowadays MLM business or Multi-level Marketing has become a trend in the business world. Thus, it is considered one of the safest business models. 29, nos. By definition, an MLM company is also called pyramid selling, network marketing, and referral marketing.It is a marketing strategy for the sale of products or services where the revenue of the MLM ⦠A revised version of this paper was published as âEthical Issues Connected with Multi-Level Marketing Schemes,â Journal of Business Ethics , vol. However, it mainly depends on the number of participants. As you become a Network Marketing Professional, youâre going to find that you use the Indirect and Super Indirect approaches much more, but that doesnât mean Direct Approaches donât have an ⦠Simple: companies choose the multi-level marketing model because MLM companies are cheaper to start and cheaper to run. 1 & 2 (2001): 1 53-1 60. Here are a few companies that are often referred to as Multi-Level Marketing companies.