Multi level marketing in business

New products based on modern technologies (high-tech), in order to enter the market, face a number of challenges such as high investment required for research and development of these products, high cost of labor force, high cost of products, making profit at advanced stages, low life expectancy, high level of associated risks and required innovation. In terms of marketing these products, issues such as centralized decision making by the manager or the owner, dynamic environment, existence of larger competitors with higher resources and influence in the market, high expectation of customers and lack of resources are just some of the issues to mention. Multi Level Marketing is a very popular business model in the Western countries. It is a kind of hybrid of the method of distribution of goods and the method of building a sales network. It is one of the safest (carries a very low risk) ways of conducting a business activity.The knowledge about functioning of this business model, both among theoreticians (scanty literature on the subject) and practitioners, is still insufficient in world.The aim of the study was, first of all, to describe Multi Level Marketing, to indicate practical benefits of this business model as well as to present basic systems of calculating a commission, which are used in marketing plans of companies.

Keywords:

Network marketing , Global , Multi level marketing , Low risk in marketing