Multi Level Marketing (MLM)

Multi Level Marketing (MLM), the Clothier (1996: 33) is

One way or method of selling directly to customers through a network of distributors developed by a freelance distributors introduce the next; income generated profits of retail and wholesale profits plus the payments based on total sales of the group was formed by a distributor

Or also known by the name of Network Marketing (the marketing of the network), which is marketing the products or services by a person or a group of people independent of the established network of stratified. Multi Level Marketing, this term refers to a business system, in which marketing products or services performed by individuals (distributor) independent (that is not bound by contract with the company's business manager). Distributor this work formed a network to market products or services. From the sale and private networks, each month the company will consider a bonus or commission as a result of business
(Harefa, 1998 a: 11).

MLM is a marketing concept is simple and often not properly understood and valued less as a serious business opportunity (Clothier, 1996: 6). MLM network structure is not basically different from the distribution system other goods. Each person in the network is to buy goods that are depending on the amount purchased, and receive a percentage of retail price as labanya. In every MLM distributor in private business have been introduced to this by perusahaanya or, more often, by the distributor that has been there. In conventional business, the sales often be as employees. In MLM, the distributorlah which the staff it, and employ their own.

Channel zero level (also called direct marketing channel) consists of a producer who sells directly to consumers, a channel that is one level channel involving new retailers to consumers, two-level channel of the channel involving the wholesale and retailer.

MLM system is cut in the sales distribution channels as conventional no longer involve wholesalers, retailers and directly to the distributor as well as consumers. This channel is used by the MLM system. Savings MLM company may also enable the company to use more money for research and development. Therefore, products that are usually have a superior quality. All MLM sales made through direct sales (direct selling).
(Harefa, 1998 a: 4)

According to the Direct Sales Agents, MLM is a free association wiraswastaan in direct sales with a goal to create the institutions that are strong enough to represent the interests of its members kepetingan in all situations in which to act to act alone is not sufficient. MLM offers the opportunity to build a business for people who do not have capital and experience. In the other perspektip explain Mahatir Muhammad MLM is the way to survive in the global market.
(Harefa, 1998 b: 13)

Even though his career as a very promising MLM distributor, namunmeraih success via the MLM is not an easy thing as reverse palmar.

Taken from :
http://id.wikipedia.org/wiki/Wirausaha
http://www.damandiri.or.id/file/isaunairbab2.pdf