N etwork M arketing (NWM)

1. Network Marketing (NWM) Prepared by: Ln. Syed Nooray Alam Shiddique LLB (Hons), LLM Managing Director Amega International (Pvt.) Ltd.

2. History of NWM…1/3 • In 1949, two young men named Rich DeVos and Jay VanAndel became Nutrilite distributors. In the ensuing decade, they build a large, prosperous organisation across America. But, in the late 1950s, a problem arose that was to continue to plague many MLM companies even until now. And it almost sank their business. • The manufacturing arm of Nutrilite was owned separately from the marketing arm. And, as often happens in such circumstances (not just in MLM), the marketing arm was seen to be making most of the money. There’s nothing unusual in this. It’s a fact of life that those who connect manufacturers to their markets take the lion’s share of the selling price, in any industry.

3. History of NWM…2/3 • To make a long story short, a standoff developed between the manufacturer and the marketer. DeVos and VanAndel watched, alarmed, as their distribution network dwindled rapidly due to lack of product and the resulting lack of income from sales. Unable to bring the two parties to an agreement, they decided to create a product of their own that they could supply to what was left of their network. • Finaly, In 1959, they formed Amway Corporation with just one single product and a new and unique business vision. Within ten years, they’d bought Nutrilite, and Amway has rarely looked back ever since. It’s still the largest MLM company worldwide.

4. The 1980s saw a major shift as companies began managing the stocking and distribution of products as well as commission payments to their members. This allowed members to focus solely on marketing. Today, most NWM companies act as logistics companies that take orders, ship products and calculate and pay commissions. HISTORY of NWM…3/3

5. The definition of network means: INTRICATE SYSTEM There are various definitions, but the method we are using is: FORMING BUSINESS CONNECTONS AND CONTACTS THROUGH INFORMED SOCIAL MEETINGS. WHAT IS NETWORK MARKETING (NWM)

6. This is what Allan Pease has to say: “The network marketing business has evolved virtually overnight without fanfare or advertising and could eventually become the largest business system of them all. Its success relies on the referral – based distribution system and is driven almost entirely by the enthusiasm of its members. It is one of the most dynamic opportunities ever created by the mind of man.” WHAT IS NETWORK MARKETING (NWM) (contd)

7. Network Marketing • Network Marketing (sometimes called Multilevel Marketing, Referral Marketing or Direct Marketing), multiple levels of people are marketing a product to consumers. • A sales representative (also referred to as a distributor, member, affiliate, partner or associate) gets customers and recruits and trains another sales rep to get customers. • The products and company are usually marketed directly to consumers and potential business partners by means of relationship referrals and word of mouth marketing.

8. Sales rep gets customers and trains another sales rep to get customers. “Refer a friend and you’ll receive a discount on your next purchase,” this is multi-level marketing.

9. THE TRDITIONAL COMPANY • In a non-Network Marketing company, a sales manager and sales reps are hired by the company. • Once a sales manager is overwhelmed, the company can hire another manager or convert a sales rep into a manager.

10. Traditional companies (non-Network Marketing) use “Multi-Width” Marketing.

11. The Network Marketing Company • An Network Marketing company “starts” by recruiting one person who gets customers and recruits sales reps with the option to become a manager. • The Network Marketing company only pays commissions, not salaries. • This is beneficial to the company because of rapid expansion by the number of trained sales reps. • This is also beneficial to the sales reps because their income isn’t limited to only what they can sell - they can also earn commissions for having trained other sales reps.

12. The Network Marketing

13. Network Marketing is Organic Organically, the Network Marketing industry is a fantastic model. Here’s why: • In its organic state one person shares a valuable product or service with another • A person shares a business idea with another • The person who shares the business with another ONLY profits IF the person they shared the business with succeeds. These three steps are the organic concepts of Network Marketing and are absolutely brilliant.

14. What kind of products are sold most in Network Marketing? 1- Products should have a authentic presence other than Network Marketing system also. 2- Price should not be over for repurchases. 3- Manufacturer of Product should have good reputation. 4- Health Products are sold most in Network Marketing.

15. Criticism Of Network Marketing • The Federal Trade Commission(FTC) issued a decision, in 1979 in which it indicated that Network Marketing was not illegal in the United States. • Destiny Group is dealing a significant amount of financial matters of their enterprise issue illegally. • UniPay2U is criticized for Money Laundering Issues. • Network Marketing's are also criticized for being unable to fulfill their promises for the majority of participants • The exploitation of personal relationships for financial gain

16. Network Marketing Compensation Plan Unilevel Plan Matrix Plan Stairstep Plan Binary Plan

17. UNILEVEL Plan • As the name suggests, the plan allows a person to sponsor one line of distributors, called a "frontline.“ • There are no width limitations, meaning there is no limit to the amount of people one can sponsor in the frontline. • The common goal of this plan is to recruit a large number of frontline distributors and then encourage them to do the same. • Use only one commission type, the level commission type.

18. STAIRSTEP Plan • Sales volume is created by recruiting and by retailing product. • Various discounts or rebates may be paid to group leaders. • Once predefined personal and/or group volumes are achieved, a representative moves up a commission level. • The original upline usually continues to be compensated through override commissions and other incentives.

19. MATRIX Plan • Matrix plans often have a maximum width and depth. • When all positions in a representative's down line matrix are filled a new matrix may be started. • Representatives in a matrix earn unlimited commissions on limited levels of volume with minimal sales quotas.

20. BINARY Plan • It allows distributors to have only two front-line distributors. • This "spillover" is one of the most attractive features. • The primary limitation is that distributors must "balance" their two downline legs to receive commissions.

21. Network Marketing Companies • Avon • Cosway • Priamacare • Acn • Tiens • Harbalife • Attitue Trading (P) Ltd. • Amway • FLP • Tupperware • DXN • RCM • Modi Care • Oriflame • HLL • RMP

22. Network Marketing Companies in Bangladesh • UNIPAY2U Bangladesh Ltd. (Investment basis) • Destiny-2000 Ltd. (Product basis) • E-Links International Pvt. Ltd. (Product basis) • Bravo Limited Company (Earning & learning) • Neway Bangladesh (Pvt.) Ltd. (Product basis) • Daehsan Bangladesh Pvt. Ltd.(DXN2U)(Product basis)

23. General Structure of NWM You

24. Level Wise NWM Level 1 You Level 2 Level 3 Level 4 Level 5

25. Amega has 1:1 Binary Plan SB Tk. 400 SB Tk. 400 SB Tk. 400 You MB Tk. 400 MB Tk. 800 +

26. U Grand Generation Bonus Price 4,800 / = Sponsor Bonus TK400 /- Sponsor Bonus TK 400 /- 1st Line 2nd Line TK 400 /- Matching Bonus B A TK 800 /- A1 A2 B2 B1 Matching Bonus Matching Bonus 16 New sales 16 New sales Daily U can earn from 2 Lines maximum 16 X 400 = Tk. 6,400

27. SALES TECHNIQUES • Look for a prospect • Attending Business Meeting/Seminar • Convince prospect for the business profits • Take the joining • Give training

28. Amega Business Policies • Commission • Incentives • Reward • Car

29. Intellectual Distribution Of Products • Motivate • Educate • Train • Support Because intellectual distribution represents the best opportunity for network marketing companies and their sales forces to succeed, what it is called the METS Formula

30. What’s wrong with Network Marketing…?? • Network Marketing Sales Technique: Rumors, Slander, Defamation • Math and Common Sense • Learning the Hard Way(exploitation of personal relation) • High-pressure Selling • "Mother, Let Me Tell You About a Fantastic Opportunity..." • Dubious Claims • Motivation: Powerful but Misguided • Exaggerated income claims

31. REWARDS Commissions based on the ongoing sales volume of your downline group. Lots of personal recognitions, public recognition and encouragement from the entire team.

32. CAREER GROWTH IN Network Marketing • Most Network Marketing companies provide career growth in terms of Levels and Target is ceiling. • Commission earnings are week • These levels are, like: Model Member STAR SILVER STAR GOLD AMBASSADOR CROWN AMBASSADOR

33. Check points for the legal Network Marketing • Company must have their own branded products. • A good residual plan is must. • Value for money should be there at the time of joining. • Products should be of daily use or must have repurchase power. • Quality should be good as it is word of mouth business. • Management should not be a part of some past illegal things. • At least a Private Limited firm should be there.

34. www.amega2u.com Visit to:

35. Thank you !!