This is a post in response to Naijasinglegirl post: My Terrible Experience With Multilevel Marketing In Nigeria - https://www.nairaland.com/2988885/terrible-experience-multilevel-marketing-nigeria. I decide to open a new thread for this because this is an important topic that require objective criticism. Before I proceed, as a recap, let me quote here her argument.

A friend approached me to say she had a brilliant idea on how I can get rich quickly.
She was going to give me a new range of consumer products that sells thrice the cost price. I asked if that is all and she explained that it was some sort of ladder marketing.
The more sellers I introduce under the scheme, the higher my profit…eventually, I will be eligible for perks like a fancy car and a trip to Dubai or the Caribbeans. As much as one of my aspirations for this year is to travel outside Nigeria even if it’s Cotonou, I started walking away.

You see, I have had a bitter experience with this multi-level marketing, network marketing or whatever it is called and I swore seven years ago never to involve myself again no matter how desperate I get.
Eight years ago, my family literally invested all we had in one IFFA multilevel marketing scheme that operated under the umbrella of Diamond Bank. That was when I first heard of multi-level marketing and my dad thought the idea was genius. Who wouldn’t when the package came with a customised debit card for each participant to cash out their ‘millions of naira’ months later.
We sold most of our shares in the stock market to fund this and introduced everybody we knew to our ‘tree’.
I remember when a rich uncle gave me my twenty thousand naira and my dad used all of it to get the IFFA forms so I could issue out to my classmates.

We spent weekends attending nerve-racking motivational rallies held by the stinking rich organisers of IFFA who rode on the ignorance of people like us to get to where they are. By the time the scales fell from our eyes, we had lost all we had including the goodwill of those we introduced. All we had left were thousands of IFFA registration forms we were now using to wrap melon seeds at home and debit cards littered like a pack of cards around the house. And where were the so -called organisers?
London, today;
Paris, tomorrow;
America during the weekend;
Because they worked hard and persevered unlike our lazy asses.

That was how a friend I met during NYSC told me on the day of POP that he is going to stay behind in the village he served to sell coffee under one multi level marketing scheme!
He was trying to convince me to stay and join the coffee scheme too since my house rent had a 2-year expiration period.
That was a 2’1 graduate of Electrical Engineering who started his service year with an aspiration of working with a multinational company and he’s was just going to abandon that beautiful dream to sell bitter coffee after he had been brainwashed.
I mean who even drinks coffee in Nigeria? Talk more of rural areas? I don’t know the story ended cos I cut off friendship with him after NYSC to avoid post POP stories that touch the heart and soul.
Same way I feel about GNLD and co. I don’t mean to knock anyone’s hustle but I refuse to be swayed by the vacation photos on Instagram of those who hammered by networking others 2000 years ago.
Never ever!
Currently, anyone who approaches my family house and mentions the words, ‘network marketing’ or ‘multi-level stands the risk of being stoned to death.
What are your experiences with multi-level marketing?

First, I belief you'd have to be living under a rock to never run into someone involved in multi-level marketing (MLM) (sometimes referred to as direct sales or network marketing). In reply to her post, I am going to point out 11 facts from her statement which shows that she will never have made it with MLM or network marketing.

Point #1: A friend approached me to say she had a brilliant idea on how I can get rich quickly.

MLM that promote get-rich-quick syndrome is a scam. Like any other business, small or large, MLM or network marketing requires time, effort and entrepreneurial skills. A MLM program that don't promote these qualities is a scam. But of course she was carried away with the promise to get rich quick.

Point #2: She was going to give me a new range of consumer products that sells thrice the cost price.

Just think about it, does it not sound too true to belief? A products that sells thrice the cost price. Honestly, I would have walked away because that sounds like greed to me. But of course she was carried away by the greed in the statement.

Point #3: The more sellers I introduce under the scheme, the higher my profit.

This is a pointer to the fact that this is a business that will succeed on your ability to convince others or communicate better. The question is are you a good sales person? If not do you acquire the right skills? I can bet that she failed because she didn't understand what network marketing is all about before she venture into it.

Point #4: I have had a bitter experience with this multi-level marketing, network marketing or whatever it is called.

This statement is an indication that you really do not know what you were getting into before you jumped in. For instance, MLM means you get paid on multi-level of income while network marketing means their is a group of people who share common interest and market inside that network. Like every business, for you to succeed, you need to do a lot of research to know what you are getting into. People make many mistakes when starting in MLM. Some don't research the company or product. Others don't read the contract they sign. Many newbies rely on the information provided by their sponsor. This is a problem because even the best sponsor won't be able to cover every little detail, and of course, some sponsors fail to disclose everything (in which case, you don't want that sponsor.). Problems people experience in MLM due to failure to research or study the contract is their fault, not MLM.

Point #5: We sold most of our shares in the stock market to fund.

I don't know what is your motivation to invest all your money into starting a MLM. However, many people join MLM because compared to many other businesses, the investment is small. Franchises and business opportunities run in the thousands just for the start-up. Because the start-up investment in MLM is much smaller than in traditional small business, it's also easier to quit. It's easier to walk away from a $100 than $5,000 or $25,000.

Point #6: I remember when a rich uncle gave me my twenty thousand naira and my dad used all of it to get the IFFA forms so I could issue out to my classmates.

Is that some sound marketing plan? Did your Dad find out if your classmates need the forms before investing? That is an indication that you may be lacking in some marketing plan. Meanwhile, another person may take the same form and sell it to your classmates. The fact that you do not have a clear-cut marketing plan is no other people's fault, it's simply lack of experience in the business you venture into.

Point #7: We spent weekends attending nerve-racking motivational rallies held by the stinking rich organisers of IFFA who rode on the ignorance of people like us to get to where they are.

I will say point of correction, they didn't ride on the ignorance of people like you to get to where they are. Ask them they will tell you patience, perseverance, hardwork, entrepreneurial skills, attention-to-details plays important part in they success. Meanwhile, those nerve-racking motivational rallies are design for you to learn the skills to succeed, to expand your network and to build your personal intellectual capacity. I supposed you miss the objective of those seminars hence I can safely conclude that you were not an active participant.

Point #8: And where were the so -called organisers?
London, today;
Paris, tomorrow;
America during the weekend;
Because they worked hard and persevered unlike our lazy asses.

I think that sound contradictory to the point you were trying to make but I am happy you spot what it takes to succeed in any business. You mention they worked hard and persevered unlike our lazy asses. Let me also mention that this days people don't just work hard, they work smart and without cutting corners and achieve success faster. It depends on your ingenuity.

Point #9: That was a 2’1 graduate of Electrical Engineering who started his service year with an aspiration of working with a multinational company and he’s was just going to abandon that beautiful dream to sell bitter coffee after he had been brainwashed.

While I am not saying that the coffee business will work for him, the fact that MLM or network marketing does not work for you does not mean it will not work for others. Besides, there are many 1st class graduates out there roaming the street. After many years of frustration, many go into apprenticeship. Plus where is the job out there. The Police advertise job position for 10,000 and in less than a month over 1million have applied. Even the IGP have to say he was surprised that Nigerians love the Police job that much. For instance, according to the Direct Selling Association, over 18 million Americans are involved in direct sales, adding $34 million to the economy in 2014. Those aren't small numbers. And some young Nigerians (graduates or no graduates) are becoming 1st generation millionaires from network marketing.

Point #10: Currently, anyone who approaches my family house and mentions the words, ‘network marketing’ or ‘multi-level stands the risk of being stoned to death.

Well, that is your own opinion but let me ask you a question. If you ate a bad meal at a restaurant, does that mean you will not eat again?

On a final note, I will leave you with some food for thought questions.
1. If you look back at the bad experience you have, does that bad experience equal I am not good at sales, does it equal network marketing is bad, does it equal vitamin is bad?
2. Based on available statistics, do you think network marketing works not for you but do you think the industry works?
3. Do people need products or services?
4. Have you ever recommend someone to do something based on how it works for you?

Conclusion
To be clear, MLM is a viable home-based business opportunity. Anyone interested in selling a product to generate income has the ability to achieve success. With that said, is crucial to research and investigate the company and products thoroughly to make sure that it's not a scam, and also, that it's a product and system you feel you can promote. There are many single-level marketing (selling products without a recruiting component) companies where the likelihood for generating income is much higher than typical MLM statistics. This is because compensation comes solely through selling products (no down-lines, minimums or recruitment tactics). Additionally, some MLM companies are product-centric and have compensation plans designed around richly rewarding product sales.

Now, someone ask the following question in the comment section and I just want to point to it.
Will I still make profit if I decide to use my own money to finance the deal instead of looking for more people to convince?
Basically that depends on the platform you are joining whether it is just a single-level marketing, network marketing or a Multi-level marketing. Some systems are design to reward you when you market within your network. Your success will depend on your ability to convince people to join your network. However, in most MLM no matter how much products you sell, you can only have minimal success.

Finally Someone with wisdom . Nice one op

Tocheagle:
Finally Someone with wisdom . Nice one op

Someone once said the different between the rich and the poor is that the rich use their head to work while the poor use their hand.

a little research will also help

please let us hear word . all MLM are scams. selling useless overpriced multivitamins and claiming they have wonderful curative properties and promising members with vague sumptuous rewards.

the companies don't give a damn about you as long as they have suckers who are willing to buy their products and initiate others into the ponzi scheme - more money for the company.

you think GNLD is not aware of all these scams and tricks people use to hoodwink the public to buy their products or join their scheme? ofcourse they know and they don't care. their major priority is SELL AS MUCH PRODUCTS AS YOU CAN NO MATTER HOW .

some these MLM clowns have now opened "herbal clinics" "diagnostic centers" etc where they have phony machines like "Quantum Magnetic Resonance Analyser" which is just a bogey Chinese designed software installed on a PC which claims to scan the whole body for every disease imaginable. They then come up with so many diseases and anomalies then prescribe their useless GNLD , TIANSHI or AIM supplements running into thousands of naira.

This OP is probably involved in MLM marketing hence his rejoinder to save their illicit trade.

Op, God bless you.

TCD:
please let us hear word . all MLM are scams. selling useless overpriced multivitamins and claiming they have wonderful curative properties and promising members with vague sumptuous rewards.

the companies don't give a damn about you as long as they have suckers who are willing to buy their products and initiate others into the ponzi scheme - more money for the company.

you think GNLD is not aware of all these scams and tricks people use to hoodwink the public to buy their products or join their scheme? ofcourse they know and they don't care. their major priority is SELL AS MUCH PRODUCTS AS YOU CAN NO MATTER HOW .

some these MLM clowns have now opened "herbal clinics" "diagnostic centers" etc where they have phony machines like "Quantum Magnetic Resonance Analyser" which is just a bogey Chinese designed software installed on a PC which claims to scan the whole body for every disease imaginable. They then come up with so many diseases and anomalies then prescribe their useless GNLD , TIANSHI or AIM supplements running into thousands of naira.

This OP is probably involved in MLM marketing hence his rejoinder to save their illicit trade.

The health and wellness industry is one of the most lucrative in the world. This is because it meets one of man's basic need - health. The companies you mention are in business and they have chosen network marketing as a means of selling their products. Mind you they may also use other forms of marketing.

The Quantum Magnetic Resonance Analyser is a WHO approved used even in developed countries. The QMRA is a high-tech innovation that combines the best of Medicine, Bio-informatics, Electrical Engineering and other sciences.

For now I am not involved but I have written several articles and journals on health. In the coming days I will launch my blog on healthy living. Besides, I have plan to join a good MLM program that solve one of man's basic need - health.

realunclej:

The health and wellness industry is one of the most lucrative in the world. This is because it meets one of man's basic need - health. The companies you mention are in business and they have chosen network marketing as a means of selling their products. Mind you they may also use other forms of marketing.

The Quantum Magnetic Resonance Analyser is a WHO approved used even in developed countries. The QMRA is a high-tech innovation that combines the best of Medicine, Bio-informatics, Electrical Engineering and other sciences.

For now I am not involved but I have written several articles and journals on health. In the coming days I will launch my blog on healthy living. Besides, I have plan to join a good MLM program that solve one of man's basic need - health.

Now I know you are a bloody scammer and a thief. The fact that you just defended that phony software installed on a PC that somehow performs body scans and laboratory tests by touch has proven to me that you are con.

please the Internet is very open show me where the WHO "approved" your phony Quantum Magnetic nonsense..

provide link to medical and scientific 'journals' you have written or have been published about the QRMA or health.

surely such a simple multifunctional , cheap "innovation" that can scan the whole body for every possible abnormality should have taken the scientific world by Strom.

you just bamboozle innocent and ignorant people with your fake diagnostics and diagnosis to scare them in to buying your overpriced multivitamins. you lot have no conscience.