2018 delivered a skyrocket of multi-level marketing companies onto people social media feeds. Skin care, hair care, fitness, and many money companies are being promoted on Instagram and Facebook and are trying to get people to join their team. People have been complaining about these companies claiming that they are clogging up their personal social media accounts and promoting pyramid schemes to young adults who may not know better? Is this a fair statement? Are all multi-level marketing companies just scams? Well, the answer is no.
Professor Jan Kakluka is the director of business management and organizational studies at Huron College at Western and says that some multi-level marketing companies suffer from being labeled as pyramid schemes when they are actually legitimate businesses.
“Some multi-level marketing companies are legit, they would become more legit if they implemented a way for people to return the products if they decide to leave the company. In the corporate world, you are able to return anything you had to purchase upfront but with these companies you cant and that may serve as a deterrent.”
He says that there are other issues with them as well. The commission structure of multi-level marketing companies is one that he thinks needs some work. He believes that getting a commission when people join underneath you is something that would drive most people away because that is what pyramid schemes kind of encompass. He says that when someone is getting involved in a multi-level marketing company they should still ensure that they are aware of the commission structure of the company.
Monat is a multi-level marketing company that has recently hired a multitude of Western students. Kirsty Feely and Olivia Quondamatteo are two fo these students and they now are in charge of teams of people. They say that it is frustrating to have people think they are a pyramid scheme when there are so many things that prove they are not.
Olivia says “pyramid schemes are so clearly illegal and we completely function through our own social media accounts so why would we be lasting something that is against the law all over our personal pages? It doesn’t make any sense.”
Kirsty says that if anything this company has helped her in the business world, not made her time more difficult which is what a pyramid scheme would do. She says that the financial benefits have allowed her to focus on school. She also says that future employers have told her that having Monat on her resume puts her above the other competitors when it comes to job searching.
These girls are passionate about the fact that they believe this type of marketing is perfect for students.
“We make our own schedule, if I have a busy week I don’t have to do any work, and if I’m free one day, I can work all day. It is up to me and all I need in order to do my job is my phone or my computer.” – Olivia
There is no definite answer as to if multi-level marketing companies are all in the clear when it comes to pyramid schemes, but it is important to note that labeled them all as such is an unfair move.
There are some that benefit from them in ways most can’t understand, but it is always important before joining to make sure you know what you are getting yourself into.
