5. INTRODUCTION
What is Multi-level Marketing?
Multi-level Marketing (MLM) or multi-level Sales
(common name in Vietnam) is a general term used
to describe a method product marketing. This is a
activity which sales products to consumers
directly.
On the world:
Currently, multi-level business is booming in most
of the countries and territories on the world,
6. In Viet Nam:
Multi-level Marketing is a new business model which was
come to Vietnam in the early 21st century.
TAM MAT TROI Investment Corporation was
established as multi-level business model.
9. - The government facilitates the development
of multi-level model.
- Tam Mat Troi Investment Corporation was
born.
ATTRACTS MANY PARTICIPANTS
Reasons
1. The new model:
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10. 30%-40%
20% - 30% 100%
40%
2. Benefits:
Manufactory
Consumer
company
General
agent
Local
dealer
Retailer Customers
Manufactory Distributor Customer
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Marketing + Advertising +
Sales promotion
11. TMT company doesn’t take
responsibility for their word of mouth
advertising, so members of this network told
the wrong information about products and
issue virtual benefits to attract others.
Some of the people knew they are
cheated by the company but they do not want
to lose their money, they cheat more people
to bring fund in the return.
D
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N
A
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3. Unethical:
12. CONSEQUENCES
1. SOCIETY:
• Effect to life quality: lose “salary” or
“legacy”
• Increase the evil society: robber, heroin
addicts, whoredom, etc.
• Suicide: each 28 hours have 1 people
suicide, most of them feel sad or good
for nothing
D
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T
A
A
N
A
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13. D
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• In 2012 (from January to June):
we have 533 robberies and 744
robbers
• In 2012: caught 4543 people
whose job is whoredom
• The report in 9/2012 show that
there are 171.392 heroin addicts
are caught, 12.987 addicts
higher than 2011
14. 2. INDUSTRY:
•Effect:
- Other industries:
- Viewpoint of people about Multi-
level.
•Model for other people or companies.
Produces are
used could
reduce
companies
Supplier &
manufactory
Jobless
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15. 3. GOVERNMENT
• Lose the tax
• Lose the belief: easy to entice
by react person.
• Effect to the people who
receive the salaries for
government
D
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A
A
N
A
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Y
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S
16. Overview, a part of people release that
customer do not have enough experience in this
new marketing. This survey focus on the reason
why a large of people interesting the new model,
the implementation of cheating and the
consequence that they probably break customer’s
belief.
17. REASONS CONSEQUENCES
SOCIETY
MANY PEOPLE LOSE THEIR MONEY AND
BECOME JOBLESS.
INDUSTRY
LOTS OF COMPANIES GO BANKRUPT
BECAUSE OF PEOPLE DO NOT HAVE
MONEY TO BUY THEIR PRODUCTS
GOVERNMENT
THE GOVERNMENT SHOULD HAVE
RESPONSIBILITY, UNLESS THEY WILL
LOSE PEOPLE’S BELIEF.
THE NEW MODEL
PEOPLE DO NOT HAVE ENOUGH
INFORMATION AND
EXPERIENCES
BENEFITS
CREATE MORE JOBS AND THEY
WILL RECEIVE MORE INCOME
UNETHICAL
PEOPLE WANT TO TAKE MONEY
EASILY AND QUICKLY.
SOME OF THEM KNOW THEY
ARE CHEATED BUT THEY STILL
CHEAT MORE PEOPLE TO TAKE
MONEY.
18. RECOMENDATION
o Multi-level Marketing can create more jobs in order to help some
unemployees
o MLM company will capture more benefits in return and the government can
takes more money from taxe annually
o The government should have a strict punishment for the scams company
to prevent more people do the same things
o Customer should have knowledge in this new model mastering