multi-level marketing; bad or goods?
DESCRIPTION
To: Miss Al Huda Tajuddin Name: Raja Nur Wahyu Class: BM1115F Title : Multi-Level Marketing; Bad Or Good?TRANSCRIPT
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MULTI – LEVEL MARKETING BAD OR GOOD?
Prepared by Raja Nur Wahyu
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• 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)
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MLM PLANS AND
STRATEGIES...
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ADVANTAGES OF MLM…
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• The company is linked to a solid
track record and showcases
great work ethics.
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• By becoming a member you
can ask questions to
more experience marketer.
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• Don't need any experience. Just practice business
skills and knowledge and
obtain the mastery experience .
(Fu Dai a, 2011)
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• Both full-time and part-time.
• The competition
amongst peers is non-
threatening
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• Decent bonuses and numerous incentives
are given to top-workers
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• The fees to start-up are
low. • They offer a strong support
system. • Good examples
help lead the way.
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DISADVANTAGES OF MLM…
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When planning to create a
downline…
it can COST.
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• A lot of MONEY is usually
spent on gas for your car,
eating out, and hotel rooms.
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• Some companies only pay for recruiting and do not give out a
commission based upon total sales. This is pyramiding and it is
ILLEGAL!!!
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MLM ON ISLAMIC
PERSPECTIVE…
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HALAL or SYUBHAH
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Sales the product at higher
price so UPLINE can enjoy
higher rate return
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If downline
FAIL to
achieve this
target,
maybe they
would NOT
be entitled to
receive any
COMMISSION
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• 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!!
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TOP
10 MLM COMPANY IN 2010
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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
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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…
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• 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.