With the current state of the world, people are forced to stay inside to prevent the spread of the coronavirus. Working adults and companies are suffering as the economy is getting worse, making business to stay afloat difficult and resulting in more unemployment. Some talented individuals, however, use this opportunity to start their own business through online as they are able to provide services that would benefit the cause for the greater good. However, there’s a marketing strategy that is considered as a taboo among the business world that everyone must avoid getting themselves into and that is multi level marketing.
Multi level marketing, or MLM for short, has been a widely known controversial strategy that is frowned upon by most businessmen and marketers. This is because most MLM companies would attract their recruits with enticing rewards when they achieve certain goals during their business. There are many articles that talk about how MLM companies are practicing unethical business methods to entice their recruits to remain loyal to their company while scamming their money. With the advancement of technology, recruiting new members is an easier chore than before especially during the coronavirus as people are forced to stay at home suffering from low income generation. Because of that, many victims and businessmen created groups and forums on popular social media platforms like Facebook, Reddit and Twitter to inform the public about the immoral practices that would leave new recruits vulnerable to fake promises and contracts.
Although MLM companies have received a bad reputation in recent years, some lesser known or equally largely known MLM companies are still reputable and offer services appropriately for almost as long as their competitors. For example, Tupperware is a popular MLM software developer known for more than just selling their tupperwares despite its namesake. They specialize in selling cooking related products, utensils and services around the world for over 80 years earning a positive reputation and making their distributors feel assured affiliating with them. Another example is Nu Skin which is an American MLM company that specializes in selling beauty products all over the world. However, just because they may seem legal that doesn’t mean they are legal all the way through as some MLM companies use a loophole to exploit their members. As more people are made aware and become more educated about MLM, MLM companies are struggling to find recruits, forcing them to shut down their business for good. Rachel Hollis, who is widely known as “Queen of MLM” has even advised people to stay away from MLM related activities despite being persistent about her role of being the queen that she even got sued for plagiarism.
Overall, MLM in recent years have received negative backlash from almost everyone. With inconsistencies and immoral business practices that they use as a loophole to get around the law, it is no wonder that no one trusts any MLM companies anymore. In the future, we will see the MLM business disappear and it will be interesting to see how the world adapts to the dying MLM business.
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