Abstract

The multilevel marketing system which has been mentioned frequently nowadays takes place in marketing literature at direct selling, a non-store retailing’s subsection. In the multilevel marketing system that is a type of direct selling, there are two different selling incomes promised for the direct sellers. One of them is selling income which occurs to sell products and the other is a payment income over a new member’s selling who is sponsored by an old member referred as sponsor. The multilevel marketing firms can use different compensation plans and income calculation methods when income is distributed to their members. These compensation plans and income calculation methods in multilevel marketing system have been explained in this research.