The Multi-level Marketing Essay Example

a plan. He suggested his friends spread information about the product and earn a commission for successful sales. Furthermore, he extended this offer to employees who could promote the products among their own acquaintances. The result surpassed everyone's expectations as the company's revenue soared.

In 1934, Carl founded a company called Vitamins California, which implemented a new distribution method where buyers also became sellers. Despite not spending any money on advertising, his company quickly reached 7 million in sales. Joining his company offered individuals the opportunity to earn high rates of remuneration, thanks to the savings on advertising expenses and intermediary stages such as dealers, retail dealers, and storehouses. By the late 1930s and early 1940s, Carl had renamed his company Nutritive Products but continued to maintain the delivery method.

His collaborators found new employees independently. Collaborators not only provide product information but also train workers on expanding the distribution network. The company ensures that all independent distributors have enough products. Workers earn commissions based on the amount of product they sell, as well as commissions based on the amount of product sold by employees they directly recruit. A willing sponsor helps those who participate in the company's network wholeheartedly. Reenters' delivery method marked a new advancement in the Network marketing industry. Reborn had recently implemented a single-layer delivery system. Many documents consider 1940 as the beginning year of multi-level marketing, with Renoir regarded as its founder. After working effectively with Nutritive Products company for an extended period, Rich De Voss and Jay Van Ended, two collaborators of the company, recognized the significant role of network marketing.

Later, they established their own company called

"the American Way Corporation", abbreviated as Anyway. Anyway has now become a leading company in the multi-level marketing industry, with branches in over 80 countries. The main participants in multi-level marketing are freshmen and workers who share a strong ambition and desire to become wealthy. However, they lack experience. Researchers have conducted surveys to gain further insights into multi-level marketing. The survey included 100 individuals knowledgeable about multi-level marketing. Among the participants, 5% expressed a negative opinion about it. 50% mentioned their desire to become rich quickly as the reason for getting involved in multi-level marketing. A significant 78% agreed that multi-level marketing helps them enhance their communication skills. Moreover, 90% believed that multi-level marketing is a waste of time and money.
As young and enthusiastic freshmen, they desire two things in order to begin their new lives: independence and the ability to pay for their tuition fees without exhaustion from studying. However, they find themselves spending a lot of time studying, leaving very little time for part-time jobs that do not require much experience.

There are individuals who believe that working for a particular company or doing a specific job can bring about quick financial success, but this is not true. It is not possible to earn money without putting in significant effort over a long period of time. These claims of rapid wealth are often used to attract naive people, but they ultimately lead to disappointment. While engaging in multi-level marketing may have some benefits, it also requires the ability to persuade others.