Multi-Level Marketing; Bad Or Good?

MULTI – LEVEL MARKETING BAD OR GOOD?

Prepared by Raja Nur Wahyu

• MLM firms sell their goods

not through a conventional

distribution system and retail

outlets, but through individual

people, selling to their friends,

acquaintances and strangers.

(Bloch, 1996)

MLM PLANS AND

STRATEGIES...

ADVANTAGES OF MLM…

• The company is linked to a solid

track record and showcases

great work ethics.

• By becoming a member you

can ask questions to

more experience marketer.

• Don't need any experience. Just practice business

skills and knowledge and

obtain the mastery experience .

(Fu Dai a, 2011)

• Both full-time and part-time.

• The competition

amongst peers is non-

threatening

• Decent bonuses and numerous incentives

are given to top-workers

• The fees to start-up are

low. • They offer a strong support

system. • Good examples

help lead the way.

DISADVANTAGES OF MLM…

When planning to create a

downline…

it can COST.

• A lot of MONEY is usually

spent on gas for your car,

eating out, and hotel rooms.

• Some companies only pay for recruiting and do not give out a

commission based upon total sales. This is pyramiding and it is

ILLEGAL!!!

MLM ON ISLAMIC

PERSPECTIVE…

HALAL or SYUBHAH

Sales the product at higher

price so UPLINE can enjoy

higher rate return

If downline

FAIL to

achieve this

target,

maybe they

would NOT

be entitled to

receive any

COMMISSION

• Some MLM companies manipulate their product, coerce the member to use their product or sell haram products. All these activities are Cleary prohibited or…

HARAM!!

TOP

10 MLM COMPANY IN 2010

TOP 10 MLM COMPANY IN 2010

1. Amway (M) Sdn Bhd

2. Avon Cosmetic (M) Sdn Bhd

3. Cosway (M) Sdn Bhd

4. Elken Sdn Bhd

5. Extra Excel (M) Sdn Bhd

6. Hai-O Marketing Sdn Bhd

7. Herbalife Products (M) Sdn Bhd

8. RZ Corporation Sdn Bhd

9. Tupperware Marketing (M) S/B

10. Zhulian Marketing (M) Sdn Bhd

CONCLUSION

So, how much the entrepreneurs will be able and are willing to LOSE if MLM doesn’t work?

Is it fit with Islamic perspective?

THINK ABOUT IT…

• Bloch, B. (1996). Multilevel marketing: what's the catch? Journal of Consumer

Marketing, 18 - 26.

• Fu Dai a, K. Y. (2011). Chinese immigrants in network marketing business in

Western host. International Business Review.

• Bakar, A. A. (2009, 04 20). Need to change public view on Multi-Level Marketing.