In multilevel marketing,salespeople have an incentive to:
A)recruit new salespeople,because they receive a commission on the sales made by the people they recruit.
B)perform as many of the marketing functions as possible,because each function they perform adds to their commission.
C)sell the product using both direct and indirect marketing methods in order to reach different types of customers.
D)limit the number of salespeople in their franchise area so that they can maximize their own sales.

Question

Quizplus · Accepted Answer

In multilevel marketing, salespeople receive a commission on the sales made by the people they recruit, so there is a strong incentive to recruit new salespeople. This can create a hierarchical structure where top-level salespeople earn commissions on the sales made by those below them, leading to a focus on recruitment rather than direct sales.

In Multilevel Marketing,salespeople Have an Incentive To