final SWOT-linhchi - 1 Strengths 2 Weaknesses According to...

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1. Strengths 2. Weaknesses According to a report conducted by the Federal Trade Commission (2009), multi- level marketing (MLM) or multi-level direct-selling depends on their local distributors to recruit, train and supervise the sales force. These distributors are inspired to do so because they can earn commissions from the sales they make and from the sales of anyone they recruit, who are called “downline”. In other words, salespeople benefit from the number of productive sales levels they set up, so does Oriflame. For this reason, those who want to recruit as many people as possible are likely to employ anybody even if they have no idea about their potential abilities and appropriate qualities for marketing. Thus, there is no limitation on the qualification of becoming a member in a multi-level marketing company which is considered its most fundamental weakness. Becoming a direct salesperson requires a little or no capital which implies low start-up expenditures; however; this also means a minor initial commitment. People, mainly students, usually join multi-level marketing not as a career choice but only to earn extra money in a short-term. Thus, they often find their own training and advice, perhaps by trials and errors without taking company-sponsored training programs. It is estimated
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This note was uploaded on 03/12/2012 for the course MANAGAMENT 103 taught by Professor Ling during the Spring '12 term at RMIT Vietnam.

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final SWOT-linhchi - 1 Strengths 2 Weaknesses According to...

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