1. Fashion Retail Management Presented By: Cai Yun Jing & Eileen Loh

2. Content  Objectives  Introduction to Multilevel Marketing  MLM VS Network Marketing  MLM VS Pyramid  Advantages & Disadvantages  Traditional Vs MLM  MLM in Singapore  Interview

3. Objectives  To understand Multilevel Marketing  Multilevel Marketing Vs Network Marketing  Multilevel Marketing VS Pyramid Scheme  Advantages & Disadvantages of Multilevel Marketing  Traditional Business VS Multilevel Marketing  Multilevel Marketing in Singapore

4. Introduction to Multilevel Marketing  A system for selling goods through a network of distributors rather then conventional advertising.  Earn money not only from your own sales, but from those you bring into and from those they bring in.  The distributors that you sign up with are called your downline.  The distributor that originally recruited you is called your upline  Some successful well-known MLM businesses include Amway, NuSkin, Mary Kay Cosmetics, Avon, and Tupperware

5. MLM VS Network Marketing MLM  Only distributors who have reached a leadership level are contracted directly with the company.  They buys from the leader at a slightly higher price, which results in a wholesale profit for the leader.  The company pays bonuses to the leader and the leader redistributes to the distributors below Network Marketing  Everyone who signs up is contracted directly to the company.  Purchase products directly from the company and receive their bonus directly from the company.  The arrangement is closer to franchising than MLM.

6. MLM VS Pyramid MLM  Legal  Based on teaching other to help them succeed.  Involve moving products from the producer to the consumer.  Consumer can purchase products without getting involved in MLM; conversely, those in MLM do not have to purchase the products.  Those who join the programme later can be successful than those who joined before them.  Multilevel company gain assorted tax benefits from the government. Pyramid  Illegal  Based on getting in first, so one can sign up others and encourage them so.  Involves moving money from people on the bottom to people on top.  Everyone has to join the pyramid to participate.  Those who join the programme later make much less and eventually lose money.  Regarded as a fraud by the government, participants are thus subject to fines and punishment.

7. Advantages & Disadvantages Advantages  Reduced capital investment  Reduced advertising expenditures  High repeat sales  High earning potential  Tax advantages  No franchise fees to pay  Opportunity to make new friends Disadvantages  Longer start up time  Less control  More paperwork  Long hours  Demand on your work time by network members  Action of other MLM members reflect on you  Necessity of staying active in company so as not to lose network

8. Traditional Vs MLM Traditional  It employs a few people to do a lot of work and produce large revenues.  You have to learn certain sales techniques and be good at closing sales  You can claw your way up the ladder, keeping all your creative ideas to yourself for fear that someone else will beat you to the top of the company. MLM  It recruits many people to work and sell a small amount of volume each.  You find product that you love and share the results or provide samples to the people you know.  You give them your creative ideas and hope that they beat you to the top position in your company as you earn a percentage of their volume. (Subjected to different company’s plan)

9. MLM in Singapore  In 1973 the Multilevel Marketing and Pyramid Selling was ban through the (Prohibition) Act.  In 2000, the Act was revised to allow for certain exclusions to the ban.  “So long as a scheme earns revenues not primarily by recruiting additional members, but through legitimate selling or leasing of products, we should allow that business to go on as usual.” said by Tang Guan Seng, senior parliamentary secretary for Trade and Industry.

10. Interview  Name: Zoey Kwa  Position: Part time Distributor  Company: Sathelyne International Co Ltd that carries Bel’Air, a bio-tech aromatherapy.  Time: 8 months  Member Fee: $60 for membership plus newsletters for a year.  Training: on-job training locally and overseas.  Job Experience: Get to meet a lot of people, gain knowledge of business skill, personal development

11. Bibliography  Successful Network Marketing for the 21st Century By Rod Nichols  Build Your Own Network Sales Business By Gregory Kishel & Patricia Kishel  The Graduate (A monthly subscription of the National University of Singapore Society)  http://sbinfocanada.about.com/cs/marketing/a/MLMpy ramid.htm http://sbinfocanada.about.com/cs/marketing/a/MLMpy ramid.htm  http://sbinfocanada.about.com/cs/marketing/g/mlm.ht m http://sbinfocanada.about.com/cs/marketing/g/mlm.ht m