Multi-Level Marketing as a business model

- Gregor Bogdan, Wadlewski Aron-Axel

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 Poland. Thus, the presented paper has been prepared as — in the Authors’ opinion — it, at least infinitesimally, bridges the gap in the recognition of Multi-Level Marketing issues. 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. The discussion was based on the study of literature and the knowledge gained in the course of free-form interviews with the leaders of the sector.

Prof. Bogdan Gregor, University of Łódź, Poland – professor at the University of Łódź, the head of the Department of Marketing, for many years the dean of the Faculty of Management of the University of Łódź, from 2008 vice-rector for economic affairs at the University of Łódź. Humboldt Foundation Scholar. His interests in the field of science and research are focused on challenges for contemporary marketing resulting from far-reaching changes in the environment of companies. He pays special attention to the issue of using new communication and IT technologies in marketing. Author (or co-author) almost 300 publications, including about a dozen books. Numerous apprenticeships at foreign universities (among others, USA, Germany, Holland).

Contact: prorekonom(at)uni.lodz.pl

Aron-Axel Wadlewski, M.Sc., University of Łódź, Poland  – Graduate of the Faculty of Management of the University of Łódź, currently participating in a doctoral programme concerning management sciences. President and founder of the Student Scientific Group MLM at the Department of Management of the University of Łódź. The author’s interests associated with research are focused on modern business models and strategies, as well as contemporary concepts of marketing used in business

DOI: 10.14611/minib.07.01.2013.09

Contact: aron.wadlewski(at)gmail.com

MINIB, 2013, Vol. 7, Issue 1

Resize of Open_Access_logo_PLoS_white  Available in Open Access.

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