Database Answers US Dept of Treasury Organisation Chart

Home Ask a Question Careers Contact us Data Models First Timers Search Site Map
Multi-Level Marketing
Back to the Data Model
The Specifications
The Specifications have been taken from the text of this entry in Wikipedia :-
"Multi-level marketing (MLM), also known as Network Marketing, is a marketing strategy 
that compensates promoters of direct selling companies not only for product sales they 
personally generate, but also for the sales of others they introduced to the company. 

The products and company are usually marketed directly to consumers and potential 
business partners by means of relationship referrals and word of mouth marketing.[1].

Independent, unsalaried 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 parent company and are awarded a 
commission based upon the volume of product sold through each of their independent businesses 

Independent distributors develop their organizations by either building an active customer 
base, who buy direct from the parent 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 parent company at wholesale price.

Distributors earn a commission based on the sales efforts of their organization, which 
includes their independent sale efforts as well as the leveraged sales efforts of their downline. 

This arrangement is similar to franchise arrangements where royalties are paid from the sales of 
individual franchise operations to the franchisor as well as to an area or region manager. 

Commissions are paid to multi-level marketing distributors according to the company’s compensation plan. 

There can be multiple levels of people receiving royalties from one person's sales.

The Things of Interest are :-
  • Commission
  • Customers
  • Distributors
  • Products
  • Royalties
  • Sales
How are these Things related ? :-
  • Workers can be involved with zero, one or many Communities.
The Business Rules state :-
  • TBD
  • TBD
  • TBD
Barry Williams Principal Consultant May 18th. 2009 Database Answers Ltd. London, England
Home Ask a Question Careers Contact us Data Models First Timers Search Site Map