Saturday, February 2, 2013

Network Marketing and What I Hate About It

According to Wikipedia,
Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant's "downline", and can provide multiple levels of compensation. Other terms for MLM include pyramid selling, network marketing, and referral marketing.
Most commonly, the salespeople are expected to sell products directly to consumers by means of relationship referrals and word of mouth marketing.
Source: http://en.wikipedia.org/wiki/Multi-level_marketing


In Cambodia, MLM is often called Network Marketing. Some people do not know what it means by the term Network Marketing as they are not familiar with the term and do not even know that they are being in the game, what they know is that they could make a lot of money without much effort.

Are we clear with the definition? :) Let's go to the next part. I am going to share what I have experienced, not what you might have heard of in any books or elsewhere. Thus, please excuse me and bear with my personal idea regarding MLM.

Network Marketing Process in Cambodia:
The top level tries to gather people through holding a workshop to explain about the benefits of MLM with very little focus on the quality of the product they sell, and will tell you a lot of successful stories; for example, some people could make 50,000 USD per month, some starters could earn 2,000 USD per week and stuff. Some people might be inspired and register to be a member immediately through paying a hundred dollars or so. However, some who are smart enough to doubt about the quality and understand that it is not easy to get the money as others expected; and what is even smarter, they do not spend a hundred of dollar on the product they have heard for the very first time - and do not know about the origin of the company, never heard even a bit of it.  Blah! I treat them as smart people.

How are you going to get more members in order to boost your sales? You may approach your friends, family, and relatives so that they can become your distributors. You are not sure of the quality, but since you are so much absorbed into it. You go advertise so that you could grow more network; all you need is distributors, a lot of them. After your friends realize that the product should not be that expensive and is not as good as they were told - they hate you.

MLM of medicine, for example, the top level might brings a few types of medicine and explain the benefits of them; after the presentation, he would ask you to try buy some; and those are not cheap. They would dare you to try it. Only if it works well with you that you should distribute. That's what you might be told. Sound nice, eh? All you could hear is easy-incoming money.

What I really hate about the idea of MLM is that in Cambodia. Friends who are so much absorbed into it do not want to tell you what they are doing. They suddenly drag you to hear what you do not want to spend a single minute on it.

For example, a classmate who took a Master degree in Public Administration with me gave me a call and told me there was an opportunity to make a lot of money in a month. I did seek for the reason, but he could not help but told me to attend a workshop. Later, I asked another classmate who attended the workshop which was informed by the same guy. He said the speakers advertised about a type of medicine which would work with many types of diseases. He was promoting more distributors. Distributors would get a lot of benefits as he could make a lot of commission without having to do anything. Just sit still and the money will grow.

After knowing what it is about, I immediately gave the guy a call and told him I am not interested. 

Lately, another friend told me that there would be a translation business and I might get a loyal client. First, she posted a comment on my Translation Ad that she might introduce me to her CEO and stuff. We agreed that we would meet at some points. One day, I went to meet her at her shop as she said she would be available to talk at that time. What I do not understand is why we can't talk on the phone when she has nothing for me to translate at the time being, I went there anyway. We spent a couple of seconds to talk about translation and lots more to drag me into MLM.

Later, I got back home, we chatted and I told her it is beyond my business scope. I want to focus on my 8 hours work and translation. Then, I also told her if her CEO is going to introduce me to MLM, not straight to Translation; then, we do not have to meet. The answer is there! She responded if I think so, then there is no need to meet. All in all, her CEO is about to spread the sermons as well.

Moreover, the price of the products that you purchase are double or triple higher than the regular price after three or four layers distributors. :D

I would call that kind of activities deceitful. 

Victims: 
The possible victims are provincial people, older generation, uneducated people, and greedy people.


I do not suggest any of my readers try that Network Marketing. Money never comes easy. Even if it does, it will spoil you. You are supposed to earn it tough. Never do the gold digging!

All I hope now is that those who are involved in MLM bring a lot of quality products, not just to cheat through network down the line.

   

19 comments:

  1. Thanks for sharing your experience about the MLM. I would like to share this info with my friends and others who are so absorbed into this kind of business. And I want them to aware of it. Anyway, sorry that i alr shared without getting your acknowledgment in advance.

    Thank again for your kind sharing.

    ReplyDelete
    Replies
    1. Sopheak, thanks for spending your time to read and comment here.

      It's free to share. There is no need to ask for acknowledgement. You shared the link. More people would know about my blog; that's what I want as well.

      You take care.

      Delete
  2. Good day Dear Mr. Vuthy,

    I have enjoyed reading your good text pertaining to the MLM in Cambodia.

    As much as I understood and agreed with your good understanding about the ploy of such MLM companies bringing in sub-standard products especially health or nutrition supplements, plainly these companies need such sub-standard products not only to deceive the publi but also to enjoy an average mark-up profits of about 6 to 7 times the costs of such sub-standard products.

    Recently, there is one MLM company called 'What City' located along MOnivong Blvd, Cambodia. This MLM company even invited top political VVIPs to join in that company events.

    The 'What City' MLM company is so so desperate that, its leaders trained all its downline distributors to cheat the public by providing a 'Guarantee after 90 days' just use its health supplements and do away any medical prescribed medication for Chronic Diabetes patients.

    This desperate act will clearly destroy the HOPE of chronic diabetic Cambodians because without medical doctors' precribed medication, the health status of these poor deceived chronic diabetics will suffer more and worst health implications to come.

    Why these chronic diabetic Cambodians' health status will worsen because the products of that 'What City' do not have any proven health records that are verified by the patients' blood test reports.

    Sadly to mention, one of the Directors of that 'What City' MLM company is a top officer in the Ministry Of Health, Cambodia. And its handbook was design and complied by one irresponsible doctor and lecturer in IU, Cambodia.

    Cambodia is one of the Member of the ASEAN Health Congress, but its Ministry Of Health has lax its lawful enforcement, thus allowing such irresponsible MLM companies to continue cheating the Hope of fellow Cambodians and to rob them of their only wealth....that is Health.

    Thank you Mr. Vuthy

    ReplyDelete
    Replies
    1. Thanks for reading and sharing your precious idea regarding Unicity :D, to be precise.

      That means a lot to other fellow readers.

      Anyway, I have just seen your comment following your call this morning.

      Delete
    2. Mr. Vuthy, you did not get inside and watch from the outside and pre-judge the business from your feeling, why do not you take a moment to think? not use your feeling, use your brain to think. pl go to my website to verify and understand more about MLM.''

      regards,

      Delete
    3. I join all unicity, klink , aim star network.... they are using pyramid schema for explanation and persuade people by some richers example.
      So pitty cambodian. Sorry forget I am telling by experienced from brain not feeling.

      Network Marketing is existed in this world in 1920. We just see it recently in cambodia.

      Cambodian cannot apply that business model as we are poor country

      @Sophal if possible when you search in search engine please search that multi level marketing problems phong. I take one week to understand their business concept finally I realize that Zero sum money theory should not be apply in cambodia. Especially with the upline from Thailand.

      We should think again about developing our country but must not this kind of business.

      Your down line exactly not happy and end up with regret because of lack info from you.

      Delete
  3. hi, I am one of person who is in network marketing era. I do enjoy read your post, but do you really think network marketing is scam or useless?

    it does have bad and good one. The only company which can help you is the company that is good, reputable, and international corporation. A company that has good record with DSA.org.

    The think is that network marketing is not an easy rich quick scheme, but if you are working hard after 4 or 6 months, you will see result. Do you know why people quitting from network after 1 or 2 months? Because it is like walking a long a street with people who are waiting to hit you one after another.

    No body can force us to join, but us by itself who see the result and want it to be like the successful people but can't take responsible go forward to get the dream. People like to quit in the middle of the road.

    Here is an idea to be a successful or core leader! It doesn't mean people joining network is bad but the result should prove. You said you hate it, but did you really put yourself to explore the MLM world yet? You said you just heard a friend said it is bad and your mind already thought it was bad already.

    It is my recommendation, if you want to be successful in life, you need to learn to open your mind a little bit more to learn or get to know more about stuffs.

    ReplyDelete
    Replies
    1. Thanks for your idea. I could see successful people from MLM as well. Those people could earn a lot of money. However, the way BAD PEOPLE dragged people to MLM is horrible. At least, admit that. It is somehow annoying.


      Delete
    2. Hi Vuthy:
      Have you ever experience in the MLM business before?
      or you just hearsay?
      study more and express your opinion better visit this http://www.explorefreedom.com/searphat

      Network Marketing helping people to get out the most out from people life.

      visit the website above and i am sure you will not spread bad opinion about other people business.

      regards,
      Sophal
      Richdad coaching graduate

      Delete
    3. Kiyosaki didn't write about MLM alone. So, that's not the only way to get rich. Stay calm. Let me do it my way.

      Delete
    4. This comment has been removed by the author.

      Delete
  4. netowrk marketing is not qualify for poor people or old people with poor-mindset. to learn more how network marketing work for you or not just visit http://www.explorefreedom.com/searphat

    enjoy the discovering and define the fact vs. opinion.

    Regards,
    Sophal

    ReplyDelete
    Replies
    1. People have right to say what they believe in. It is all about opinion. You have yours, I have mine.

      Maybe because I have bad experience with MLM that's the part I want to share. Maybe you have good experience with MLM, so you want to share.

      Thanks for sharing another side of the story.

      Delete
  5. Thanks for your post, I searched about more infos about MLM in Cambodia. some friends brought this to me now. Your post helping me to many choices of thinking to do this kind of Job.

    Thanks bro

    ReplyDelete
    Replies
    1. Samnang, you're welcome; and thanks for reading my blog post.

      Delete

 
Copyright © . Vuthy and His Ideologies - Posts · Comments
Theme Template by BTDesigner · Powered by Blogger

My Instagram

Affiliations