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Latest post Tue, Jul 4 2006 10:37 AM by Itasan. 2 replies.
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Itasan  +  242535 Tue, 04 Jul 06 08:31 AM

I don't know the system very well, but something like this:
"A is a sales agent for some company. He introduces another
person B to the company. B in turn introduces another C to
the company, and so on. A gets some percentage of B's and
C's sales. B gets some percentage of C's sales, and so on."
I think this kind of marketing activity is illegal, but I often
hear of such a thing. I wonder what you call this kind of business.
1. multilevel marketing [sales]
2. pyramid selling
3. chain referral
4. any other?
A Japanes classic term for this is NEZUMI KOH, literally
'mice marketing' or something like that.

Thank you.

Joined on Wed, May 11 2005
Japan
Full Member 402
nona the brit  +  242563 Tue, 04 Jul 06 10:23 AM

Pyramid selling is illegal in the UK. This is a form of business where essentially you only earn money by signing up new members, and don't really directly sell anything yourself.

Multi-level marketing is the name for the system you describe and it is legal as there is a product being sold, as well as new sales people/members being signed up. Examples of MLM are Avon cosmetics, Amway products, and many others. Still often something to avoid as there are lots of companies that just stay within the legal limits but few people make any money from them.

Joined on Wed, Sep 22 2004
England
Veteran Member 11,713
The name says it all.
Itasan, 3 yr 142 days ago
Thank you very much, Nona, for the valuable information as always.
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