I have an amazing opportunity for you. You can work from home and earn as much as you want. Plus, there is almost no risk. But hurry - you don't want to miss out!' You might have received a similar spiel from a friend, family member or someone on social media. When I saw that a friend of mine had started selling essential oils, I began looking into the company that she tagged in all her Instagram posts. What I found was a world of deception and double-speak. Companies that operate in grey areas, where they’re relatively safe from consequences. And people who are afraid to speak out, who blame themselves for their failure when, really, what we’re dealing with is a business model designed for failure.
‘The legal cousin of pyramid schemes’
Multilevel marketing (MLM for short, also known as network marketing or direct selling) is nothing new. But its prevalence is. Thanks to social media, MLM proponents are everywhere, from Facebook groups and TikTok to Instagram reels, all touting an ‘amazing opportunity’ that cannot be missed.
I won’t mention company names here – you can Google ‘MLM companies in South Africa’ for the names. Many of these companies originated in the US and they’ve found fertile ground in developing countries such as South Africa, with its high levels of poverty and unemployment.
In MLM, contractors or sales reps sell products directly to consumers in a non-retail environment. But they also recruit others to sell below them – this is known as their downline. Reps make money when they sell the products, and also get money from the sales of those who work below them; those they’ve recruited, the people they have, in turn, recruited, and on it goes.
This story is from the March/April 2024 edition of Fairlady.
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This story is from the March/April 2024 edition of Fairlady.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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