Sunday, November 19, 2006


Multi-Level Marketing

How often have you hear this line when one of your friends or relatives want to talk to you privately or invite you to go somewhere with them. "Let me tell you about an incredible business opportunity," and you are invited to a company to hear someone speak."

You feel in your gut that there is some hidden agenda. "Probably a multi-level marketing (MLM) organization," you think. Suppose it is? Should you trust your instincts? Is there anything wrong with MLM? And why is it that in the Philippines its usually cast in a bad light.

Whats wrong with MLM? For one, MLM can no longer claim to be new and, thus, exempt from the normal rules of the market and the way goods and services are sold. They have been tried and, for the most part, have failed. Some have been miserable failures in spite of offering excellent products or being innovative.

A very good basic question that needs to be asked is this: If this product or service is so great, then why isn't it being sold through the stores or the malls? Why dont we see the product is SM or Robinsons? Why does it need to resort to a special marketing scheme like an MLM?

MLMs work by geometric expansion, where you get ten to sponsor ten to sponsor ten, and so on. This is usually shown as an expanding matrix with corresponding
kick-backs at various levels.

The problem here is one of common sense. At a mere three levels deep this would be 1,000 people. At six levels deep, that would be 1,000,000 people believing they can make money selling. But to whom? Thats a LOT of people to convince! And the MLM is just getting its steam going. Think of all the meetings! Think of all the "dreams" being sold! Think of the false hopes being generated. Think of the money being lost.


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  • 1 comment:

    Chris Varvaro said...

    Thanks For The Great Information. Good Luck!