According to Wikipedia, multi-level marketing is a marketing strategy in which the sales force is compensated not only for sales that they personally generate, but also for the sales of the salespeople that they recruit.
Some of you might think of few products that you have purchased through a salesperson. This would be a personal selling, not a multi-level marketing. Multi-level marketing focuses on expanding its compensation through gathering more and more people to generate more money.
This marketing strategy is considered a trap for many salespeople in Korea. Many young salespeople have gone into multi-level marketing and end up with debts that they cannot pay back. For the worst example, there are people who use this strategy in a prostitution. I have seen number of news that talked about how corrupted this strategy is. It is always sad to see many young salesperson become victims of those who are blinded by money.
No comments:
Post a Comment