The holidays are just around the corner and you know what that means? It means that majority of students will be out looking for jobs during the hols. But before you get attracted to the ads on Gumtree or JobStreet offering highass salary, read this post for a while. It'll only take you 10 mins and it will save you a whole lot of trouble.
I will now explain what Multi Level Marketing (MLM) is in a nutshell. Basically it is those kind of network marketing jobs that require no skill, no certs, no education and a lot a lot a lot a lot... A LOT of support from family and friends. Did I mention a lot? yeah.
And there is always a hierarchy in those kind of businesses. To climb up the hierarchy, you either need to hit a certain amount of $$ earned for the company OR accumulate a certain amount of points by doing sales.
This is what differs MLM companies from other normal companies. Instead of being promoted based on effort, hard work and experience, you can basically just buy your way up in MLMs. And the people in MLM companies will ALWAYS try to lure you in by telling you that the higher up the hierarchy you are, the more you'll earn, and they make a big deal out of this. ( I mean, which fucking company doesn't do that? wtf. )
Now, I'm not saying that MLM is evil. There are giant successful companies like Amway and Bel'Air and people do become rich from it.. But thats 1 in a few hundred thousands and at what price?
I used to be in a MLM company .. lets just name it ABC. It is located very near town but NOT the one a Chinatown. How I came to know about the company was that, I was looking for a part time job during the holidays. Then, this random guy that I did not know came to PM me on Facebook.
Lets name this person guy A. He told me that his company was hiring and it was free lance. He did not mention anything about the pay, only that it pays very well. So I went down to the company for an 'interview'. The interview was basically held at the showroom and guy A just kept telling me about the products sold in the company. (magnetic beds, beauty lotions etc. )
Im sure most of you have sat through talks like this. Usually it ends up with the person asking you to buy the product to try and to sell to your friends. So I was ready to say NO to the dude. But, he told me 'You do not have to invest any money. You can just start immediately and don't need to fork out a single cent'. So I was impressed. I didn't think it was MLM company because they told me they were direct sales (bullshit lol).
So I will now tell you the procedures that you have to go through after the interview. ( I worked with the company for 4 months and I was the 'executive' ) after the interview, they will ask you to come down to the company again for a 3 hours product training. (Don't worry they won't ask you to buy the product during the training. Not yet)
After the training, they will make you list down this 'Market Listing' where you basically write down ALL the contacts in your phone, their age and their numbers on a list and pass it to them. Right after that, they will do a family tree where they get to know ALL about your family members. How many auntie/uncles you have, their age, their health status, their FINANCIAL INCOME and what type of housing they stayed in.
After you have listed all that down, they will IMMEDIATELY tell you to call your closest family members (can be your parents/grandparents/uncle/aunty) to arrange for a sales appointment ASAP.
They will tell you that the purpose of this sales appointment is to give you exposure and not to sell them the products. Quote : " Your parents feed and support you. Do you think we would want to force your parents to buy?" (yeah thats what they always say btw. )
But the truth of the matter is, unless your family is in some kind of financial crisis or your parents are really against sales, they will most probably buy the product from you.
Now the prices of these 'magnetic beds' aren't cheap. The lowest cost $200 (without your commission, with commission its like $250) and it can go up to $3,300. After your first sales appointment, they will make you go for 3 to 4 more appointments in the same week.
And of course they will target your relatives next, followed by your close friends' parents, some adults you know. basically people with spending power and people you can get an appointment with.
When you have dried out your contacts, they will make you go do street surveys (you can usually find them scattered around at Somerset, Orchard and Dhoby) to look out for potential people to join your 'team'. This is because , like all MLM companies, you will actually EARN from your 'downlines'. So if someone under you makes a sales, you will earn a portion of it.
If I go through everything that happened to me in the company, this post will take a year to write. So these are what I have noticed and things I want you to know before you get lured in by them.
1. They mark up the price of the products A LOT. If the original price is $800, they will sell it to your family members at $3000.
2. The products they sell are not scientifically proven. They do provide a lot of 'proof' that it works but if scientists (who have obviously conducted these tests) say that its not proven, THEN IT IS NOT PROVEN.
3. They will make you go through a lot of brain washing session. They call these 'coffee sessions'. You basically get to talk to the CEO or the top management and they will tell you about how successful they are and how this business was better than everything else. They will make you want to be a business man/woman whether you like it or not, making you feel stupid if you had any other dreams.
And adding to this point, the top management have been in this business for MANY years. They claim that you will earn at least $3-$4k a month when you first start out and obviously earn MUCH more when you're higher up. But the top management themselves doesn't seem so rich or well off. They're always tight on budget and even the 'most successful' person there drives a second-hand car. Not to mention the ex CEO is bankrupt.
4. They will always talk bad about other competitor companies.
5. Remember the 'Market Listing'? Yeah they will use the lists by the people that left the company to call their friends and tell them to join the company. The conversation usually goes like this "Hi I just received your number from job search. My company has an opening . would you be interested to work?" And they do this without consent from the owner of the contact list.
6. They will have sudden 'promotions' and discounts. Just out of the blue. No prior warning or announcements. Like, there was this day A LOT of young people came down for a meeting, on the same day, they suddenly announced a ONE DAY ONLY discount on a product and they slashed off $140 from the actual sales price. You can't tell me that's not serious bullshit.
7. Oh and you know how I said that you don't actually have to BUY the product right? Well they have this habit of just forcing you to get the product and in the end, you just feel so bad that you'll buy it. Let me explain what happened. So one of the seniors from the company came to meet me for a sales appointment that day and she brought along a big product from the company. I did not know she was bringing it and I don't know why she brought it for. So at the end of the appointment, she told me that she brought it for me because she 'sincerely' want me to use it. I told her no. Because there was no way my mother can afford it. It cost like 2.8k wth. Then she started saying how I can slowly pay the company back and complaining how she had brought the whole product straight from office and how tiring it was. (She travels around in a car btw) . So in the end, she made me feel so bad and uncomfortable that I ended up getting the product.
8. They are liars. They will never let you say the true purpose of approaching someone. For example, if you're calling in to fix an appointment, they will make you say things like 'to share knowledge with you, not obliged to buy, it is not sales, just for your benefit, just want to let you know etc etc etc. ' IF you cannot honestly tell the customer that you are doing sales, then how honest can your business be? if it is SOOOOO good like they say it is, why not be proud of it and just tell them that they want to do sales?
9. They will FORCE you to bring your friends in and do everything they did to you , to your friends. And they do all this with the power of money. They will get students like us, who really need and want money, to risk everything for it. I almost ruined my friendship with SO MANY people because of this business but thank goodness I left before things got really bad.
10. I did earn about $1k/ month ONCE. that just happened ONCE btw. But to earn that 1k, I had to do a lot of shit and even my mom got involved in working for it. In the end, I brought in about $60k worth of sales for the company but I ended up with like.. $1.5k at most. Now lets calculate. I go to work everyday and sit there from 11 am to 11 pm doing shit for them and training the new sales agents, so thats 12 hours a work. And I work EVERYDAY. Even on weekends. 7 days a week.
Simple maths : $1500/ 31 (days) / 12 hours = $4/hour. That is literally what macs pay you. Earn a lot my ass.
I could actually go on all day about this but all that up there ^ should suffice for now.
oh and last important thing,
if you are on gumtree, jobstreet, etc etc and you're finding a job and you come across something like this : Hiring freelance/ flexible timing/ work any time you want
High salary. $400-$500 / week
Assist manager in doing sales, handling of store
THAT IS MOST PROBABLY A MLM COMPANY.
Just be careful.
If they don't pay you hourly for your work, if you are just basing your salary off commissions, then I rather you stick to low pay job with a fixed income. Don't listen to what they say about 'smart workers'. A smart worker will work for a job with fix salary because it is reliable. Not something based off commission where if you can't find sales, you're literally screwed.
Any questions, just leave a comment.
Love yo faces.