Network Marketing and What I Hate About It

According to Wikipedia,

Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant's "downline", and can provide multiple levels of compensation. Other terms for MLM include pyramid selling, network marketing, and referral marketing.
Most commonly, the salespeople are expected to sell products directly to consumers by means of relationship referrals and word of mouth marketing.

Source: http://en.wikipedia.org/wiki/Multi-level_marketing

In Cambodia, MLM is often called Network Marketing. Some people do not know what it means by the term Network Marketing as they are not familiar with the term and do not even know that they are being in the game, what they know is that they could make a lot of money without much effort.

Are we clear with the definition? :) Let's go to the next part. I am going to share what I have experienced, not what you might have heard of in any books or elsewhere. Thus, please excuse me and bear with my personal idea regarding MLM.

Network Marketing Process in Cambodia:

The top level tries to gather people through holding a workshop to explain about the benefits of MLM with very little focus on the quality of the product they sell, and will tell you a lot of successful stories; for example, some people could make 50,000 USD per month, some starters could earn 2,000 USD per week and stuff. Some people might be inspired and register to be a member immediately through paying a hundred dollars or so. However, some who are smart enough to doubt about the quality and understand that it is not easy to get the money as others expected; and what is even smarter, they do not spend a hundred of dollar on the product they have heard for the very first time - and do not know about the origin of the company, never heard even a bit of it.  Blah! I treat them as smart people.

How are you going to get more members in order to boost your sales? You may approach your friends, family, and relatives so that they can become your distributors. You are not sure of the quality, but since you are so much absorbed into it. You go advertise so that you could grow more network; all you need is distributors, a lot of them. After your friends realize that the product should not be that expensive and is not as good as they were told - they hate you.

MLM of medicine, for example, the top level might brings a few types of medicine and explain the benefits of them; after the presentation, he would ask you to try buy some; and those are not cheap. They would dare you to try it. Only if it works well with you that you should distribute. That's what you might be told. Sound nice, eh? All you could hear is easy-incoming money.

What I really hate about the idea of MLM is that in Cambodia. Friends who are so much absorbed into it do not want to tell you what they are doing. They suddenly drag you to hear what you do not want to spend a single minute on it.

For example, a classmate who took a Master degree in Public Administration with me gave me a call and told me there was an opportunity to make a lot of money in a month. I did seek for the reason, but he could not help but told me to attend a workshop. Later, I asked another classmate who attended the workshop which was informed by the same guy. He said the speakers advertised about a type of medicine which would work with many types of diseases. He was promoting more distributors. Distributors would get a lot of benefits as he could make a lot of commission without having to do anything. Just sit still and the money will grow.

After knowing what it is about, I immediately gave the guy a call and told him I am not interested. 

Lately, another friend told me that there would be a translation business and I might get a loyal client. First, she posted a comment on my Translation Ad that she might introduce me to her CEO and stuff. We agreed that we would meet at some points. One day, I went to meet her at her shop as she said she would be available to talk at that time. What I do not understand is why we can't talk on the phone when she has nothing for me to translate at the time being, I went there anyway. We spent a couple of seconds to talk about translation and lots more to drag me into MLM.

Later, I got back home, we chatted and I told her it is beyond my business scope. I want to focus on my 8 hours work and translation. Then, I also told her if her CEO is going to introduce me to MLM, not straight to Translation; then, we do not have to meet. The answer is there! She responded if I think so, then there is no need to meet. All in all, her CEO is about to spread the sermons as well.

Moreover, the price of the products that you purchase are double or triple higher than the regular price after three or four layers distributors. :D

I would call that kind of activities deceitful. 

^Victims: 

^{The possible victims are provincial people, older generation, uneducated people, and greedy people.}

I do not suggest any of my readers try that Network Marketing. Money never comes easy. Even if it does, it will spoil you. You are supposed to earn it tough. Never do the gold digging!

All I hope now is that those who are involved in MLM bring a lot of quality products, not just to cheat through network down the line.