Multi-Level Marketing - a Tool of Relationship Marketing

Abstract

This paper aims to analyse the opportunity of using multi-level marketing (MLM) as a tool of relationship marketing. The research is firstly based on an analysis regarding the issues about the legality of MLM techniques in the context of EU and US regulation systems. The outcomes of this research stress the main characteristics of legal network marketing and how a person which wants to become independent distributor could avoid the cooperation with an illegal pyramid scheme. The second research is based on a case study at the level of an insurance broker, which emphasizes the benefits that all parties involved in a transaction (broker, distributor and customer) could obtain by using an MLM scheme.