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