Marketing is an important aspect for business companies to spread the awareness of their brands around the country or the world. Different strategies have different approaches that when used appropriately can attract a lot of attention which could increase their profit by a significant amount. As technology advances, business companies must adapt to the evolving trend among their consumers to attract more attention and reward their loyal members. However, there is one marketing strategy that is frowned upon by most businessmen and marketers and that is multi level marketing.
The world of multi level marketing, or MLM, is a complicated business as it is regarded as one of the most controversial marketing strategies by businessmen and marketers around the world. It was infamous for tricking naive recruits into investing their services with enticing promises. With the surge of COVID-19 recently, the MLM software developer was booming with people who were desperate to earn money when they were stuck at home. Housewives, unemployed and even working adults turned to MLM when they could not generate enough income to pay for rent or event food to feed themselves. On paper, MLM is a marketing strategy that involves the distributors to sell the investor’s products and are paid according to the amount of sales they have made. However, those who are uneducated about the dark side of MLM will be forced to not only recruit people and meet a quota, but to also pay a certain amount of money as a “registration fee”. This is because most distributors are promised of getting paid based on the amount of successful recruits they have. Some of the largest MLM companies like Amway, Herbalife and Plexus have been reported of using this practice as well, shaking the trust of citizens, businessmen, investors and marketers.
In order to combat against these MLM companies, victims and knowledgeable businessmen aim to educate the general public about MLM and companies that are misusing the name and concept of MLM so that they won’t fall victim to these companies by identifying jargons and promises they offer. As more people become educated and more aware of the schemes, MLM companies are struggling to recruit and keep themselves afloat making even legitimate MLM companies harder to recruit distributors. With social media platforms becoming more prominent for people who are stuck at home, MLM companies are more likely to approach them as the perfect opportunity to recruit more people to join their cause. Many uneducated people fell victim to their schemes because they entice their soon-to-be distributors with attractive rewards for committing and staying loyal to their services by asking them to recruit more people and they’ll get paid according to the successful recruitments.
As the MLM industry starts to lose more distributors, most people involved in it will definitely not miss it by a long shot except for those who are still willing to invest into MLM. It is a pity for legitimate MLM companies who are willing to offer their services as honestly and transparently as possible to only have their reputation tarnished. However, we must still keep an eye on these MLM companies to update on new jargons or fake promises they will use to fool other naive people especially on social media.
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