A post on MLM

Well, dunno why the sudden impetus in wanting to blog about this topic. Think it’s been at the back of my mind somewhere just din think of blogging about it till now.

Guess everyone’s heard of multi-level-marketing by now. So, what’s the first thing that comes to mind when you hear about MLM? Money? Cars? Health products? Uplines? Downlines? I personally happened to have an experience with regards to MLM. Here’s how the story went.

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A friend of mine(lets call him W) was (and still is) working for this MLM company in Clarke quay. I of course did not know of this fact then. I din even really know anything about MLM prior to this, save for a vague memory that my bro was involved in MLM before for a short duration.

So anyway me and W were pretty close friends then and met up often to lunch and play bball occasionally. Then one day he told me that he had a friend who recently opened a café in Clarke quay and asked if I’m free to go and patronize the shop. Sensing nothing amiss, I agreed and went to Clarke quay to meet him. First surprise when I saw him in office-wear (long sleeve shirt with dress pants), cos I didn’t know he had a job then. I din ask much then and we proceeded to this café owned by his friend. Second surprise came when I realized it was not really a “café” per say, but rather a very small eatery that sells economic bee hoon and nasi lemak (which I later learnt served as a cheap meeting place-cum lunch area for the MLM people).

So after sitting down and having dinner there, W told me another friend (colleague) will be joining us. After a short talk to this seemingly nice colleague he suggested W bring me up to his working place and take a look around. And there’s where it all started. Lots of people started coming to talk to me, introducing me to their product, telling me how important health is, how great the company (and the boss) is by, how my pay as a regular won’t be enough to see my life through comfortably), how great it would be to own a BMW at the age of 20, showing me newspaper cuttings, as well as the many professionals who endorsed their product etc etc. For those who went to MLM companies before, you’ll know what I’m talking about. As for those who hadn’t, no harm going to listen, but try not to bring your wallets along hahaha.

So after a night of “brain-washing” (I went there at 7-plus, I left at 1 am), I was part of the company. The next few days I went down to the company often, driven by this beautifully-woven dream to own a BMW and to be financially-secured at the age of 20. Then slowly, bit by tiny bit, many untold truths behind the company came to me.

First of all, I learnt that from what the consumers pay by buying the product, only one-third goes to the cost of the product. One third goes to the company itself, and one third is distributed amongst the “distributors”, that is, the MLM people. Meaning the product actually maybe only costs $1000 and you’re selling it at $3000. Hereon comes the moral issue.

You are selling these products to your RELATIVES. These are family, people whom you’ve seen for your whole life. People who watched you grow up. The uplines tell you its worth it, that the product will dramatically improve your relative’s health, convincing you that if you really care for them, you should encourage them to use the product. But the fact is I don’t even know if the products really work. So what if its endorsed by professionals? So what if it has a warranty of 10 years? To be perfectly cynical, I’m not even sure if the company would still be around in 10 years’ time, for MLM companies are infamous for being short-lived. And even if the product is as miraculous as foretold, it costs a bomb, and I know my relatives are paying for the commissions for my uplines rather than for the product itself.

Then I also learnt that there are tested-and-proven methods to make appointments to ask your friends down to the company, or to make appointments with your relatives to sell them the product. These are methods that have proven to be the most effective and guarantee the highest rate of success. Methods that I would definitely not wish to consider using on my relatives or friends. Methods that I find too shocking to even mention here.

And then it struck me. W used the exact same method on me! The realization slapped me across the face. I left the company shortly after.

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Till today W is still striving for his car, in a company where like-minded youths are united in the belief of a comfortable life in exchange for a couple of years of hard work. I only hope what he’s gained would be at least of equal value of the friends he lost.

Please do not misunderstand, for I am not condemning all MLM companies. Granted, there’s MLM companies of reputable backgrounds, whose products have really helped countless people, who do not have “methods” to close deals. The basic principle is the same, it is a network of uplines and downlines, and the company gives you a bonus for every quota met. Those that succeed are seen as gods, driving around in Porsches, Mercs, BMWs and taking home fat paychecks every week. But do remember that there are countless others who are stuck in these companies, unable to move up the ladder, and stuck too deep to withdraw from it all. And it’s these people who are contributing to the pockets of the top-flyers.

MLM activists lament that the society in Singapore views them in a negative light, when they’re being embraced in Europe and the US. But most of the time, its due to these “methods” that people abhor them. Just some food for thought =)