A long lost friend contacts you out of the blue and asks you out for coffee. You accept, jumping at the chance to rekindle an old friendship.
But as the coffee date progresses, your "friend" utters those dreaded words: "Are you open to exploring a new business opportunity?"
Most Singaporeans have been solicited at least once in their lives by a friend or relative who works for an MLM. Then there are rumours of people who've lost thousands after investing significant upfront capital on MLM products.
WHAT'S THE MEANING OF MLM OR MULTI-LEVEL MARKETING?
MLM is a type of marketing strategy which lets a company earn money by recruiting salespeople. These sales people are not paid but instead earn through commissions.
In practical terms, MLM companies in Singapore usually get their members to pay an upfront fee for their products. They are then told that they can make back this money from commissions earned by recruiting new members. The company's main source of revenue is thus not the sale of actual products, but rather the recruitment of salespeople.