MAL 19/17 (MARKETING AFRICA) | Page 22

ONLINE NETWORK MARKETING ONLINE NETWORK MARKETING: CREATIVITY OR SCAM? By Eugene Wanekeya O nline Network Marketing has been touted as one of the best cash cows for idle unemployed youth not only in Kenya but also globally. Advocates of the concept sell the idea as the ultimate avenue for financial freedom, convincing so many youths to buy into it. Another school of thought however, has branded the concept as a scam, just another pyramid scheme. that they personally recruit into their network. So how does it work? In a nutshell, network marketing is presented as a multi-level marketing strategy that remunerates a sales force not only for sales they personally generate, but also for the sales of the other sales people The bone of contention regarding this concept is twofold. First, every new sales person recruited into the company is often required to pay a fee to be trained and given access to the respective company’s ‘money What is important to note is that when it comes to most online network marketing ventures, an individual does not even have to make a single sale simply because they can earn a comfortable living from the income they receive for every recruit they bring into the sales force. ‘‘ Online Network Marketing has been touted as one of the best cash cows for idle unemployed youth not only in Kenya but also globally. Advocates of the concept sell the idea as the ultimate avenue for financial freedom, convincing so many youths to buy into it. Another school of thought however, has branded the concept as a scam, just another pyramid scheme.’’ 20 MAL 19/17 ISSUE making’ online platform, and a further monthly fee to retain their access to this platform. What this means is that whether or not the sales person makes any actual sales, the owners of the company are still generating revenue. Second, most of the products that are usually up for sale are virtually impossible to sell especially in the African market at present because they are not business critical solutions. Most business entities are doing quite well without these products. However, if I play devil’s advocate, I may argue that a good sales person is one who can sell you running water from your own tap. This network marketing system presents itself like the infamous Ponzi Scheme in that the company’s sales force spends more time trying to recruit sales people into their networks and less time making actual sales. The more the number of sales people under your network, the more money you generate for the company through the various fees and the more your commissions. For those who are still not getting the drift, a Ponzi Scheme is a fraudulent investment operation where the