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AMSOIL Dealer alaska » Amsoil Information, Amsoil MLM, Amsoil News, Featured » AMSOIL Network Marketing for 40 years and still growing

AMSOIL Network Marketing for 40 years and still growing


Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation. Other terms for MLM include network marketing,pyramid selling, and referral marketing.

Most commonly, the salespeople are expected to sell products directly to consumers by means of relationship referrals and word of mouth marketing. Some people equate MLM with direct selling, although MLM is only one type of direct selling. Making money on-line is easy now day, because of this business model.

MLM companies have been a frequent subject of criticism as well as the target of lawsuits. Criticism has focused on their similarity to illegal pyramid schemes, price-fixing of products, high initial start-up costs, emphasis on recruitment of lower-tiered salespeople over actual sales, encouraging if not requiring salespeople to purchase and use the company’s products, potential exploitation of personal relationships which are used as new sales and recruiting targets, complex and sometimes exaggerated compensation schemes, and cult-like techniques which some groups use to enhance their members’ enthusiasm and devotion. Not all MLM companies operate the same way, and MLM groups have persistently denied that their techniques are anything but legitimate business practices.  In contrast to MLM is single-level marketing. In single-level marketing, the salesperson is rewarded for selling the product, but not for recruiting or sponsoring other salespeople.

Amsoil has 7 revenue streams of making money with it’s network marketing business model.  You work at your our pace.

1) AMSOIL Personal Retail Sales (click here to read more)

2)  AMSOIL Preferred Customer (click here to read more)

3)  AMSOIL Catalog Sales (click here to read more)

4) AMSOIL Internet Sales (click here to read more)

5) AMSOIL Commercial Accounts (click here to read more)

6) AMSOIL Retail on the shelf accounts (click here to read more)

7) Sponsoring New Amsoil Dealers (click here to read more)




Direct selling, network marketing, and multi-level marketing

“Network Marketing” and “Multi-level Marketing” are generally considered to be synonyms, and a subset of direct selling.While “direct selling” and “network marketing” refer primarily to the distribution system, the term “multi-level marketing” emphasizes the compensation plan more.  Other terms that are sometimes used to describe multi-level marketing include “word-of-mouth marketing”, “interactive distribution”, and “relationship marketing”. Critics have argued that the use of different terms and “buzzwords” is an effort to distinguish multi-level marketing from illegal Ponzi schemes, chain letters, and consumer fraud scams.Some sources classify multi-level marketing as a form of direct selling rather than being direct selling.

The Direct Selling Association, an American industry body, reported that in 1990 twenty-five percent of members used MLM, growing to 77.3 percent in 1999.   Companies such as Avon, Electrolux, Tupperware,  and Kirby all originally used single level marketing to sell their goods and later introduced multi-level compensation plans.  By 2009, 94.2% of members were using MLM, accounting for 99.6% of sellers, and 97.1% of sales.  The DSA has approximately 200 members  while it is estimated there are over 1000 firms using multi-level marketing in the US alone.



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Independent, un-salaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents, etc.), represent the company that produces the products or provides the services they sell. They are awarded a commission based upon the volume of product sold through their own sales efforts as well as that of their downline organization.

Independent distributors develop their organizations by either building an active customer base, who buy direct from the company, or by recruiting a downline of independent distributors who also build a customer base, thereby expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they purchased from the company at wholesale price.

The Synthetic market is expected to continuing growing well into the future.   Project annual growth  is expected to grow about 7.3% a year by the year 2013. 2011_June_whats_driving_the_growth_of_synthetics.pdf


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