NETWORK MARKETING
“ Many months and years down the road , my comrades had dropped the venture . It was not as green as they had hoped . They were stuck with drugs they did not need or sell , debts and foiled relationships with their kindred . They did not want to talk about it .”
purchase a specified minimum amount of the product .
Distributors are often the biggest market for MLM products and therefore , the ultimate aim of somebody in MLM is to recruit as many people in their pipeline as possible . This is because each time the recruits buy the products , the original person gets a commission from the sale , enabling them to make passive income for little work . This is again very similar to a pyramid scheme .
MLMs are mostly famous in the USA and have been around for years . Popular MLMs include Amway , Avon , Arbonne , Herbalife and Tupperware ! The multi-level marketing industry generated a staggering $ 192 billion in 2018 alone . This is a figure we cannot ignore but are they making money while those in their sales pipelines are sinking into debt and depression ?
The most viable answer is that most of the money made goes to the business owners while the distributors and their families get stuck with products they cannot sell . This may be because most of the products are way overpriced and the idea is to make money from membership fees and mandatory purchases .
In addition , by default , those who sign up become very annoying as they try selling to family , friends and social media followers . I am sure you have come across some of your social media friends whose entire timeline comprises aggressive promotional content on MLM products and messages such as ‘ get paid to post on Facebook ,’ and ‘ become a millionaire by just using your smartphone !’
In the end , there lies a thin line between truth and reality in regards to the validity of Multi-Level Marketing and pyramid schemes . While we may not necessarily use multilevel marketing as a synonym for a pyramid scheme , it is a marketing model purely stacked against the distributor ’ s favor . ■
Denis Mbau is a corporate communications and media expert working in multiple sectors , helping organizations communicate effectively through strategy to enhance impact . Commune with him via email at :
Mbaud2010 @ gmail . com www . zippy . co . ke
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