I still remember the frustration on my friend’s face after she lost a huge sum in the “quick” money making multi-level marketing (MLM) scheme, which is also called “the pyramid scheme”. After she was introduced to it by people who supposedly benefited from the scheme, she invested over N100,000 (one hundred thousand naira). Today, her investment has gone under water, never to be seen again, as the founding MLM organization declared bankruptcy.

For those of you who are unfamiliar with the idea of Multi-Level Marketing (MLM), let me give a brief explanation of the idea: When sales force is rewarded for the sales they generate, and also for the sales of the other sales people they recruit, it is called multi-level marketing. The recruited sales force is referred to as the participant’s “downline”. At a point, the initial sales people recruited or those who are known to be on top of the pyramid will keep benefiting from the program if those below them keep on recruiting more people and more sales is made. Discounted prices for goods come with recruiting more people who will keep the chain strong and alive. Once the link is broken, many people get hurt.


Nigerians are today streaming en masse into this program without first counting the cost. This is partly due to our dwindling economy and the desperation to survive. Any idea that is declared as a quick money making venture is rushed into, even without proper investigation or legal consultation. Let’s take a proper look at the problems associated with multi-level marketing.

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