Can you use Multi-level Marketing (MLM) System to sell property? Part 1.
This is an interesting question to discuss because there are firms in the competitive market trying to adopt newer scheme in recruitment of field force.
Rules and Acts aside. I just take this discussion onto a level of business structure and strategic viability and leave the right or wrong to the regulators.
MLM Scheme has a special feature which conventional selling does NOT have. It is the heart and soul of MLM. This characteristic is Users as Sellers, vice versa. It simply means sellers are using the products as well as selling it to new users.
Hence, it is repeatedly used by its sales force, the sales force becomes the spokesperson for the product and market share increases as they virally invade their competitors. It is like a tumour, growing to an enormous size which outstrip their own needs of oxygen and nutrients. Eventually, the core itself die of starvation, in MLM the core die of immense wealth – and that is deadly.
So, MLM system is aggressive and engineered to fast growth but it is not necessarily suitable for all products. Property is definitely not a commodity to be marketed by MLM platform. There are a couple of reasons.
Tomorrow we will visit some of these reasons.