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Multi-Level Sales Networks are Rat Traps

Jul 15, 2008
Modern companies are striving to get their products to different target consumers. In the modern times, the distribution of products is really a great challenge for manufacturers. The prevailing economic situation is so intense that aside form competition, there are other significant factors that affect marketing of products.

The challenge has been plaguing global companies for the past several decades. Thus, during the 1980s, the sales industry came up with another selling scheme that is currently known as multi-level selling.

Multi-level sales

Multi-level sales involves different people. The set up is almost like a cake in a pyramid stature that has many different layers.

These layers in the multi-level sales set up vary. On top of course is the company that manufactures the goods to be marketed. The company is so crucial because the network would not run without the merchandise to be distributed.

Then, the second layer would be the direct marketing personnel. These group of people are directly buying the company's products. In that way, when they sell the products to another layer of sales people, the price is heavier and reflects their own profits and commissions.

More and more layers of sales people will be involved as long as there would be people who would openly embrace the selling ideas. Thus, the network is becoming huge, and the layers are piling higher and higher.

It is in this reason that when the cake falls down, many layers would be involved and the mess the destruction would cause would be too much to handle.

Why do people fall into the rat trap?

The multi-level sales scheme can be treated as similar to rat traps. The trap is open for gullible rats, who are aiming to get more food and live comfortably.

People never seem to learn the fact that what goes in easily goes out as easy. Easy money is the main convincing factor of almost all multi-level sales schemes.

People would always long for that. They are always on the look out about how they could generate more money without exerting too much effort.

Thus the idea of making their money work for them almost always work. Sales people and recruiters of multi-level sales networks would always thrive on that weak human spot. And apparently, they always succeed in doing that.

There are numerous multi-level sales networks that fall apart, left and right, from time to time. But is somehow surprising to note that people would still continue investing their hard earned money at such ineffective and deceiving schemes.

Legitimacy

So if the multi-level sales networks are always beneficial, why do they still thrive? Why do governments from around the world act against them?

The answer to these questions would be the vested legitimacy to these business schemes. The structure can be considered as a simple marketing and franchising scheme. Thus, nothing is illegitimate about that.

It is also left to individuals' discretion whether they would invest in such marketing schemes. After all, some people really do reap profits and income from such activities.

It is just so hard to replicate luck people's fortunes. Invest your money wisely.
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