Multi Level Marketing (MLM) is once again a hot news and this time it’s not just with the participants but media is also involved – investigation, print report, interview and so much of exposure. I feel Multi Level Marketing should now be rechristened as Snakes And Ladder Marketing
Soon after my college one of my friend was joining Amway around 1993 and I use to attend some of these session with him. I was never ever convinced with the idea. No doubt Amway was wrongly sold then (that’s the way I look at it) – no idea whether is it still the same case. Between 1993 and 2000 odd, I came across many Amway guys who use to literary chew my brain out. The best part was starting the conversation as to how would I like to retire or what if I had my own business.
After my close association with my friend and few third degree torture I was well educated and use to have select questions which none of these aspirant were able to revert on.
Are you selling me the product or asking me to join? Why when I don’t like their products? What is the revenue percentage of re-sales volume in India V/s percentage of new joinee and so on. I have due respect for Amway as a company but no idea why the company doesn't push and encouraging more re-sales.
I use to work at Lower Parel, Mumbai and visit a hotel in the nearby area – the young son of the said hotelier was the latest abuser that I encountered last year. Around 1995-97 I recollect of even coming across Japan Life – Wow – magnetic bed worth around one lakh during those days and I don’t know how people use to sell it – or should I say buy it.
The concept of MLM has been around in India for quite some time largely with local / regional presence in form of chit funds, cosmetic products, real estate schemes, investment schemes and what not. However in the last couple of years the trend has increased and we have seen many such scheme getting launched. The best part is in spite previous personal experiences or ample awareness, people overwhelmingly participate.
I feel the key reason is we have more than 100 crores of population to cheat or fool. And the concept is very simple even if you are able to make 100 Rs after distributing the down line from even 0.05 percent of the population we are talking about making not less than 50 crores !! That’s a big money and worth a bet.
And see the other side, if you are a participant, you can be either the one who had made money last time and want to join again, or are lured (it may be wrong when I say majority of us would be quite aware about the high risk) or are genuinely IMPRESSED OR you really don’t mind taking that small risk!!
What I liked about the recent trend is the use of technology by these operators. Isn’t it great that after Super Lotto (online lottery – though it’s official as I understand) we are now having MLM getting tech savvy. The newer schemes are getting floated on web – Speak Asia, Ram Survey and many others which I may not know. We should not be surprised if the next scheme is available on mobile and SMS!!
But one thing is sure MLM is nothing but a Snakes And Ladder game wherein we try to maximize money and the operator is a snake who take away every time you try to reach on top – what say!!
