What is Multi-Level Marketing (MLM) and How Does It Work?

Many people are already aware of how MLM works, so this article is for those who are not yet fully integrated into society or have just come out of school and are about to enter the world of fraud. The following points and expertise are based on my own personal experience.

When I was a student, I tried to look for my first (part-time) job during my school holidays. I had no prior work experience and was recruited for a multi-level marketing (MLM) organization. These businesses were already recruiting all year long. I don't remember the name of the company, but I do remember marketing itself as a Japanese firm with a Japanese work culture where the sky is the limit and your success is determined by your talent. It was an environment where your academic credentials were irrelevant.

First, the ostensible manager of the MLM firm told us about the organization and its culture. The manager himself would come and give the new hires a tour of the company, which didn't seem unusual to me when I was younger. Anyway, we were told that we are very lucky to be able to work for a foreign company. Working for a foreign firm that was 'officially' a multinational corporation (MNC) was quite attractive to a teenager (of course, there were other older people around). When it comes to company culture, there isn't much. When we see other directors, we greet them with 'Good morning, Mr. John' or anything like that, because Japanese culture places a lot of emphasis on seniority. Now that I think about it, that's the basic respect we show our bosses and even our colleagues wherever we work.

Intent: To give us the idea that this is a legitimate international company and we are lucky to be able to work for them.

Then they started to show us the goods. At that time, magnets were used in the products they offered. Magnetic mattresses, magnetic pillows, magnetic bracelets, magnetic necklaces and other magnetic items are available. The magnetic fields produced by the magnets inside each of these magnetic products are said to have scientifically explained medicinal properties of cleansing your body. From relieving physical pain to feeling more rejuvenated every day, from curing cancer (no kidding, people actually tell me that) to preventing kidney failure, $1,500 was a modest price for a queen mattress ($1500 was a significant figure 20 years ago). Pay for a healthy lifestyle. Then questions were directed to us. If we had money right now, who would we buy this bed for? Some claimed they would buy it for themselves, while others said they would buy it for their parents (buying for parents is the correct answer). Yeah! If we can afford it, receiving a gift like this for our parents is a great way to show parental devotion and love to those who feed us.

Intention: Not everyone is a natural salesperson. Get this idea in the minds of potential new employees while they're still fresh. First, turn these employees into consumers and offer them a few things. They did make some sales even though they didn't eventually join the company. Salespeople are constantly on the lookout for new potential recruits.

After introducing us to the items, they showed us around the company, introduced us to other managers along the way. They instilled in us the belief that our success depends on our own talent. Director Tom has barely completed Elementary 6, but is now a director. Director Harry joined the company in his 30s, transitioning into a completely unrelated industry mid-career and still succeeding. The company provided equal opportunities for all of us as long as we worked hard. Naturally, I discovered much later that this was true throughout the sales world. The only thing that matters is that you can track sales without violating the law.

Intention: To try to convince us that we have a future in the company. If we are talented, we will undoubtedly succeed. Every teenager today wants to believe that he can shoot for the stars, is different from others, is unique and will undoubtedly be successful in business. After breaking down a few social barriers, reality kicks in. After all, we are not that unique. However, expressing that right now has a certain appeal to young people.

We were then taken to another room where people divided us into small groups (in some businesses, you're split on the individual level) to discuss the finer points of the business. The traditional method of pulling out a blank A4 sheet of paper, giving a passionate pep talk, then scribbling on numbers and graphs. As a result, you can earn a certain amount of money for everything you sell. Plus, if you refer your friends, you'll get a share of their commission for every item they sell! You can get a share if your friends bring in more friends and they sell something too! Simply put, you get a percentage of all sales made by your downline. This is the job of a lifetime. You put in some effort for a while, bring a few friends, and you may find that a lot of money comes in because they work for you. You'll also be doing them a favor by bringing in more friends and introducing them to this great opportunity.

As a side note, even newly joined new members are always asked to invite their friends as well. You might get a call from a distant friend inviting you to dinner, and then you're dragged into one of many MLM recruiting efforts for no apparent reason. Then, as your friend sits next to you smiling gleefully, you watch with horror as a strange person pulls out a blank A4 sheet of paper and starts a passionate conversation with you about the financial freedom you can get by selling their magnetic bearings. These MLM organizations,