Network marketing on example of the company Amway

Mrežni marketing još se naziva i višerazinski marketing (eng. multi-level marketing, kratica MLM), a uključuje pružanje dobara i usluga izravno potrošačima na temelju individualnih kontakata, obično kod kuće klijenata, na radnom mjestu ili na drugim mjestima izvan stalnih poslovnica s maloprodajnim mjestom. Mrežni marketing zapravo je direktna prodaja s kojom ima niz sličnosti. Razlika je u tome što se direktna prodaja odnosi se na metodu distribucije, dok se multi-level marketing posebno odnosi na vrstu plana naknada u direktnoj prodaji. Članovi MLM poduzeća mogu zaraditi novac na dva načina: prvi je direktnom prodajom proizvoda, dok se drugi način odnosi na zapošljavanje i obučavanje drugih ljudi da postanu novi članovi, tj. postotkom prodaje novih članova. Često se mrežni marketing poistovjećuje s prodajnom piramidom koja predstavlja ilegalnu organizaciju prodaje. Jedan od glavnih razloga tome je da se ilegalni sustav predstavlja kao MLM sustav. Razlika između prodajne piramide i multi-level marketinga je u tome što prodajna piramida nema mogućnost distribucije proizvoda ili pružanja usluga, pa ako nema prodaje proizvoda, nemoguće je govoriti o bilo kakvom marketingu. Da bi se bolje shvatila razlika između ilegalnih piramidalnih sustava i strukture mrežnog marketinga, potrebno je razumjeti pravila funkcioniranja planova nagrađivanja u multi-level marketingu. Mnogi govore da je multi-level marketing najproduktivniji način plasmana roba i usluga. Zadatak ovog rada je razjasniti što je to mrežni marketing, kako funkcionira sustav naknada u mrežnom marketingu, te provesti istraživanje na temu.Network marketing, or as it is called, multi-level marketing (MLM), involves providing goods and services directly to consumers based on individual contacts, usualy at client's home, at a workplace or at other locations outside a permanent retail place. Network marketing is actually a direct sale with whom it has a lot of similarities. The difference is that direct sales refer to the distribution metod, while multi-level marketing specifically refers to the type of compensation plan in direct sales. The members of MLM companies can earn money in two ways. First one is from the direct sales of products, and the other one is from employing and training other people to become new members, which means through the percentage of sales of the new members. Network marketing is often identified with a sales pyramid which is an illegal sales organisation. One of the main reasons for that kind of identification is a presentation of the illegal systems as a MLM system. The difference between the sales pyramid and the multi-level marketing is that the sales pyramid doesn't have the ability to distribute products or provide services. So, if there is no sale of the product, it's impossible to talk about any kind of marketing. To better understand the difference between illegal pyramid schemes and network marketing structures, it is necessary to understand the rules of functioning of the rewarding plans in multi-level marketing. Many say that multi-level marketing is the most productive way how companies can place and present the goods and services on the market. The task of this paper is to clarify what network marketing is, how the system of compensation works in network marketing, and do research about the theme