A Company Multilevel Marketing System Design

At present, the market competition is extremely fiercely, and although many Chinese medium-sized and small enterprises can produce the products which have their own distinguished features, they cannot establish their own brands and marketing channels because of the lack of funds. In such situation, the medium-sized and small enterprises urgently have to find a way which is suitable for their long-term development, so that they can keep winning in such fierce marketing competition. When the social economy develops into some specific period, one business model in which there is non-store selling comes out. This kind of business model is formed in the combination of many types of scientific technologies which includes management technology, communication technology, information technology and soon. And networking marketing is one of the ways of non-store selling. Flexibility and multifamily are the characteristics of networking marketing, which can effectively improve the operational efficiency of companies, figure out the problems of financing, and meanwhile promote the competition and save the transaction cost. The advantages of networking marketing can be concluded that it can bring stable and strong cash flow, large-scale selling teams, customers of high loyalty and small administration expense. To establish distinct and reasonable bonus system is the base of starting networking marketing in a company. Before the marketing or other specific direct selling activity is taken in a company of networking marketing, the bonus system should be designed, which is connected with the vital interests of every salesmen. In another word, the company should make use of this formula to calculate the sales compensation for every salesman before the specific activity of networking marketing is taken. After the analyzing of the background and significance of networking marketing and on the base of some related theory of networking marketing, this thesis analyses some problems that the networking marketing company a meets now. And in this thesis, Amway HongKong, Melaleuca Taiwan, and USANA are analyzed as the typical cases to discuss the characteristics of the multilevel bonus system of networking marketing in different types, and the bonus structures. This thesis offers some advices for the design of company A’s multilevel bonus system, which is combined with the culture and products features of the company.