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Wednesday 16 January 2019

Is Network Marketing A Scam?

Network Marketing is a business model that ensures that goods and services are passed directly from the producers/manufacturers to the retail customers/end users thereby bye passing the middlemen. In this model, profits made by the company is shared directly with the retailers.

Wikipedia defines Network Marketing  (also known as Multi-Level Marketing, Referral Marketing or Direct Sales as 

"a marketing strategy for the sale of products or services where the revenue of the MLM company is derived from a non-salaried workforce selling the company's products/services, while the earnings of the participants are derived from a pyramid-shaped or binary compensation commission system."

Its a multi-billion dollar industry in the United States.

However due to the emergence of many Ponzi schemes (a Ponzi scheme is a form of fraud which lures investors and pays profits to earlier investors by using funds obtained from more recent investors. The victims are led to believe that the profits are coming from product sales or other means, and they remain unaware that other investors are the source of profits.) which present themselves as Network Marketing opportunities through which many people have lost tons of money, a lot of people have developed apathy, nay hatred for it. So much so that the very mention of the phrase Network Marketing repels and puts off a lot of people. Sergey Mavrodi MMM comes to mind at this juncture!

Kindly share your opinions. What do you think? Is Network Marketing a scam?


  1. I don't see anything wrong with it. Some people have done well for themselves through it. Some of us, however, have no flair for it. I just don't like the idea of my earnings depending largely on what somebody else does or doesn't do. My opinion please. So I recruit three downlines, like it usually is, hoping they'll get busy and sell stuff so I can earn commission. What if they get lazy and stall? Many friends have tried to talk me out of the phobia, they are yet to succeed. Those who have the flair and are especially good at talking to people should please go ahead.

  2. The scam population of online and crowd funding has made it a no go to a lot of potential clients. Everything about network marketing has been termed fraud to the Niverian populace and can't blame people with the economical conditions being metted on the citizens

  3. Not all are scam. Mostly when products are involved, I don't discourage people. It's a way of expanding a business. Through referrals, companies are advertised and grow in income and profits are made. Partners also share in the profits

  4. If you have to get paid with someone's money, without exchange of goods, services/skills. Its PONZI scheme.

    PONZI is parasitic, you feed off other people, the only way to get paid is to feed off other people.

    That lots of people have made money from it doesn't change it.

    I am not condemning it, just saying it as it is

    Not everyone has the stomach for it


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