Multi level marketing: A scam for financially vulnerable people

As the COVID-19 pandemic took over the world by storm, many people were forced to stay inside to prevent the further spread of the virus. During this period, working citizens are either let go or forced to work at home while getting lesser pay as their companies are keeping their business afloat. Because of that, most people are financially struggling and continuously search for other ways to generate income. For some people, they are able to use their experience and knowledge to establish their own business to provide services for people who are unable to adapt to the new lifestyle through various social media platforms. But, there are times where some people are approached by a stranger that offers business propositions that could entice them to join the company and it is called multi level marketing. 

Multi level marketing, or MLM, is a marketing strategy that is used by MLM companies to recruit distributors to sell their products. These distributors are then paid according to the amount of sales they have made. To some, this sounds like the perfect business to do when you’re stuck at home as all you have to do is to actively advertise and sell the products to get paid. But with so many people investing into MLM, how do these companies keep track of their distributors and keep each other updated on their current situation? THis is where MLM software comes in to save their day. MLM software is a software that can do pretty much almost anything MLM related, from selling products to keeping documents and providing a platform for investors and distributors to communicate while increasing work efficiency. These multi level marketing software demo helps to keep data online anytime and anywhere to ensure that the data is constantly saved and serves as a backup in the events that will cost physical data to be destroyed or lost. With the increasing popularity of MLM during the pandemic, more people are investing into the MLM industry as they are promised with great fortunes and enticing rewards for affiliating with MLM companies. 

However, MLM has garnered a bad reputation recently with even some of the biggest MLM companies such as Amway, Herbalife and LuLaRoe were reported to use unethical business methods to continue operating. Despite being legitimate, MLM is considered a bad investment as well as distributors would only get paid RM 800 at the very least. Most MLM recruiters would entice people with promising rewards and the “potential” of investing into the MLM business but deceiving them from how MLM actually works. Even most legitimate MLM companies who follow the code of conduct would use a loophole in the code to force their distributors to pay more money than normal.

Overall, MLM is considered a bad investment even if you are desperate to earn money as there are many uncertainties that could ruin you financially. People must be educated about MLM and familiarize themselves with the jargos to do a fact check against the recruiters before investing into MLM.

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