MULTILEVEL MARKETING APPROACH : EVALUATION OF SATISFACTION OF STAKEHOLDERS
The problem, in general, is that the activity of recruiting people into MLM schemes is socially and psychologically unacceptable to most people in our society. In other words, the process of network marketing brings with it some situations, attitudes and types of behavior that are highly problematic in ways that will be described below. People promoting multilevel marketing praise it as an opportunity of a lifetime. The conventional process of promoting this so-called opportunity to friends and virtually everyone else in someone’s circle of acquaintance is, for the most part, unacceptable. The big draw card is that commission is paid not only for direct sales you have made yourself, but from sales made by your recruits as well. Theoretically, you can make a fortune as this process expands in a sort of multi-layered network which, when drawn on paper, fans out into a pyramid-like structure. It offers great advantages to company itself, distributors and members. The advantages vary in nature and from company to company. Companies involved claim they are different than others. But the ethnical association of human values results into discontent and break down of relationships as eventually the plan fails. In terms of the Fair Trading Act, MLM frequently treads a very fine line between genuine marketing of goods and an attempt to sell a pure investment or moneymaking scheme.