Applied Research Methods

Group Members:
Anusha kumari(2035148)
Sadia
Waleed
Introduction:

Multilevel marketing (MLM) is a kind of direct selling and it gets significant international growth
in 1990s. Plans of multilevel marketing are also knows as matrix or network marketing and it is
the way of selling goods through distributors. Furthermore, if you are signing up as a
distributor, then these plans will typically promise that you will receive commissions for both
your sales for the plan’s goods and services and for other people you will recruit to join the
distributor. It is usually promised by multilevel marketing plans that they pay commissions
through two or more levels of recruits that are known as distributor’s downlines. On that time
there will be ratio of investigation and prosecution of illegal pyramid schemes increased.
Commissions are only earned on the sales of company’s products or services in a legal MLM
company. Money cannot be earned from recruiting alone (sign up fees). Company is considered
as illegal pyramid scheme if participants are primarily paid from money received from new
recruits.