Multi level marketing from direct marketing principles

The important developments in techonology, busy work life, the increase in thenumber of businesswoman, the traffic and the parking problem in big cities and theconsumers thoughts that the stres and the time are both expenses in addition to cost paid forproduct and the service forced the marketing experts tı find new methods for makingshopping easier and at the same time decreasing the marketing costs.Direct marketing is a contemporary marketing method used in marketing theproducts and services that has its own rules and specialities and it makes shopping easier forconsumers.One of the most effective methods of direct marketing is Multi Level Marketingand this method has a wide applying area in developed countries. Recently, especially since1990, this method has also started to improve in our country. The population, unemployment,urbanization, income level, part time job oportinities, means of communication , infrastructureand the banking system in our country has a big role in improvement of Multi LevelMarketing.At this system, the distrubuitors who deliver products to consumers areindependent entrepreneurs. These distributors make other distributors do the same job and sothey enlarge their systems. Each distributors has chance to make big incomes this way.Because, the discount that they got from total sale increases as the team becomes larger. Also,each distributors earns from the sales.There are two main themes in the model of Multi Level Marketing. Referral andthe residual income. In this organization, the people who use these products and the peoplewho advice the products to the others are awarded ?systematically? and ?continiously?. Inaddition, if the new members who are included in the system advice the products to theothers, the people are awarded again.Keywords: Direct Marketing, Multi level marketing, Database Marketing, PyramidOrganization, Personal Selling.