Are you ready for that business opportunity that will change your life for good? Read This!
I received a Facebook friend request from a breathtakingly beautiful damsel (basing to her profile picture) in this world of filters and Photoshop you can’t be so sure. Of course I accept with in the second, she might change her mind and cancel the request. Immediately she sends a text “hello”. Today is my lucky day, I’m thinking as I return the pleasantry. She responds
I know what she is about. If you have been living on this rock that is the Pearl of Africa for the past decade chances are you have come across someone trying to recruit you into one of these Multi Level Marketing businesses. GNLD, forever living, BF Suma, Trevor and the currently the most popular one being Alliance In Motion Global (AIM Global) among many others.
Also known as network marketing, what exactly is multi level marketing?
Basing to the trainings I’ve attended, conversations with current and former members, you can make money by using & reselling the company’s products. You become your own customer, marketing and selling to others and finally recruiting others from whose sales you earn a profit expressed as a percentage. For each level of descendants beneath you, you earn a percentage off their sale’s profits. Multi level marketing is not a pyramid scheme since the former has actual products sold to the customers whereas pyramid schemes don’t have actual products sold.
So what are the benefits of this system?
If you want to start your own business, be your own boss, have flexible working hours, I’ve been told Multi Level marketing is the easiest and cheapest way to that life. To join you have to invest money in products or pay a sign up fee. For one of the companies I was wooed to join, both alternatives cost UGX 700000 (approximately 200 US dollars). Comparing that to the cost of starting up a conventional business in downtown Kampala, one need about UGX 20 million. So it is a considerably cheaper way to become self employed.
The multi level marketing system is built to encourage mentorship by members higher up the ladder since they have financial interest in your success. Regular meetings are held together develop strategies and teamwork. You meet people from all walks of life accumulating social capital. For some categories of people like stay at home parents and retirees, network marketing is an opportunity to get out of the house and keep busy. A father of a friend falls under this category. Travelling to events and meetings breaks the monotony of staying home all day.
And the other side, The REAL SIDE!
A friend joined this line of business in 2009, making a profit is almost impossible even after successfully recruiting a number of people. After a year, she was earning UGX 70000 a month. This was not enough to cover the costs involved (.i.e. purchase of products, travelling to meetings and events etc). This is because the system is designed to pay the higher ups more than those down the ladder. Therefore as long as there is someone above you they shall enjoy higher profits than you. This is frustrating after a lot of hard work in put.
I intentionally avoid meeting people known to me that they are involved in multi level marketing. I can’t stand the wooing anymore. These people are persistent, they shall bombard you with success stories of success, show you bank statements of the more successful members, some even go to the extreme of lying about their own financial success, needless to say, it doesn’t reflect on them. A person who earns a million shillings a day definitely can afford a decent pair of shoes, water to shower up, cologne to smell good, and a shirt whose collar is not torn.
The bottom of the Bottom line!
If you find yourself in a situation that you want to join a multi level marketing business, ask a lot of questions, read and understand the terms and conditions, find out about their refund policy and any other information that might be useful. For me, I’ll pass and try to save for more substantial businesses in the future.