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MLM Compensation Marketing Plan
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What is Multi-level marketing (MLM)? Criticism & Evaluation
Multi-level marketing (MLM) is a business model in which companies sell their products or services directly to consumers, through a network of independent distributors. The distributors earn income from the sale of products and also from network of distributors.
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SLM (Single-level Marketing) vs MLM (Multi-level Marketing)
Single-level marketing (SLM) is a traditional business model in which a company sells its products directly to the end-customer through a salesperson.
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Types of MLM Compensation Plan
There are several types of MLM (Multi-Level Marketing) compensation plans, including:
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Overpaid MLM Compensation Plan
MLM compensation plans are often criticized for overpaying because they tend to heavily incentivize recruitment over actual sales of products or services.
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Direct Sales MLM / AJL License Application in Malaysia
In Malaysia, a Direct Sales License is required for companies engaged in direct selling activities, including door-to-door sales, telemarketing, and sales from place to place not being a fixed place of business.
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Pyramid Scheme vs MLM
A pyramid scheme is an illegal, unsustainable business model in which participants receive payment for recruiting others into the scheme, rather than for selling a legitimate product or service.
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Running a Successful MLM Company
To run a successful MLM (Multi-Level Marketing) company, here are some key factors to consider: