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How coronavirus pandemic affects Multilevel Marketing
By Jason Tsang CEO/Founder of Pyramid Termination Cause
With the events resulting from worldwide Corona Virus Pandemic including quarantines, business shutdowns and decrease/reduction of business activity, I initially thought and hoped that MLM pyramid schemes would take a big hit and decreased in their prevalence, since I thought how are they able to recruit with these hurdles? The reality is actually some MLMs have adapted themselves to the pandemic. They promised themselves as an alternative business opportunity through social media that can function in spite of the times. They are using this pandemic to advertise their own quackery that a regular J.O.B (Just Over Broke) is a flawed rat race system as opposed to the flawless "business investment" they are promoting through a black and white picture. Believe or not, the increased revenue and enrollments of some multi-level marketing his really a good thing. You may ask how is that even good? As per statistics, the vast majority of those people are going to waste there time, dedication and money! The reason this is good is because the fact that MLMs have increased "business" shows there really can't be direct selling since the pandemic environment hinders direct selling with quarantines limiting person to person interaction. The fact that some MLMs are sustaining themselves show through the process of elimination that the only thing they are selling is the so called "business opportunity" which is mixed with a bunch of self help. Where is the direct selling? Where is the door to door knocking to get people to try the so called miracle products or the "party" events? Where is the on hand product demonstration? Who would even buy those overpriced MLM products to begin with during hard times when similar products are retailed at 1/3 the price?
MLMs (Multi Level Marketing) was never about direct selling to end users but to promote an endless chain business opportunity. It is never really about the product that people join but the enticement of a "business opportunity". It is unfortunate how in hard times with the pandemic, our civilized society is like the wild. You would expect a solution for your hard situation but instead of that, you get hyenas to take advantage of your weakness. In this Pandemic where people are struggling, it is important for money to flow into a more honest economy rather than those MLM traps. Imagine if the estimated 100 Billion dollars of the MLM industry were to flow into the economy to people with honest jobs. That would be progress! Donate to our project if you wish.
MLM - All Avenues of Direct Selling = Only Promotion of Business Opportunity
(Due to Covid)
In 2013, the “Direct Selling” Association proclaimed this definition of “direct selling”:
“Direct selling is a business model that offers entrepreneurial opportunities to individuals as independent contractors to market and/or sell products and services, typically outside of a fixed retail establishment, through one-to-one selling, in-home product demonstrations or online.”
Note: MLMs can't compete online with established retail companies due to a lack of advertising and all other outlets provide substantially more inexpensive pricing due to the goal of product value to end user customers. Retail companies like Walgreens, GNC or CVS or not trying to launder product purchases for an endless chain compensation system. Due to an endless chain compensation structure, MLM products are often 3x more expensive than normal due to top weight compensation obligations that all other retail companies don't have.
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