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MULTI – LEVEL MARKETING
     BAD OR GOOD?
           Prepared by Raja Nur Wahyu
• MLM firms sell their goods
   not through a conventional
  distribution system and retail
 outlets, but through individu...
MLM PLANS AND
 STRATEGIES...
ADVANTAGES
          OF MLM…
• The company is
  linked to a solid
    track record
   and showcases
     great work
       ethics.
• By becoming a
   member you
     can ask
   questions to
      more
   experience
    marketer.
• Don't need any
  experience. Just
 practice business
     skills and
  knowledge and
obtain the mastery
    experience ....
• Both full-time
 and part-time.
      • The
   competition
  amongst peers
      is non-
   threatening
• Decent
bonuses and
 numerous
 incentives
are given to
top-workers
• The fees to
     start-up are
         low.
  • They offer a
   strong support
       system.
• Good examples
    help l...
DISADVANTAGES
   OF MLM…
When planning to create a
  downline…




                  it can COST.
•A lot of MONEY is usually
 spent on gas for your car,
eating out, and hotel rooms.
• Some companies only pay for
  recruiting and do not give out a
commission based upon total sales.
    This is pyramiding...
MLM ON ISLAMIC
     PERSPECTIVE…
HALAL or
SYUBHAH
Sales the product at higher
price so UPLINE can enjoy
    higher rate return
If downline
    FAIL to
 achieve this
    target,
 maybe they
 would NOT
be entitled to
 receive any
COMMISSION
• Some MLM companies manipulate their
  product, coerce the member to use their
  product or sell haram products. All thes...
TOP



10 MLM COMPANY
     IN 2010
TOP 10 MLM COMPANY IN 2010
1. Amway (M) Sdn Bhd
2. Avon Cosmetic (M) Sdn Bhd
3. Cosway (M) Sdn Bhd
4. Elken Sdn Bhd
5. Ext...
CONCLUSION
 So, how much the entrepreneurs will be able
and are willing to LOSE if MLM doesn’t work?
       Is it fit with...
•   Bloch, B. (1996). Multilevel marketing: what's the catch? Journal of Consumer
    Marketing, 18 - 26.

•   Fu Dai a, K...
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  1. 1. MULTI – LEVEL MARKETING BAD OR GOOD? Prepared by Raja Nur Wahyu
  2. 2. • MLM firms sell their goods not through a conventional distribution system and retail outlets, but through individual people, selling to their friends, acquaintances and strangers. (Bloch, 1996)
  3. 3. MLM PLANS AND STRATEGIES...
  4. 4. ADVANTAGES OF MLM…
  5. 5. • The company is linked to a solid track record and showcases great work ethics.
  6. 6. • By becoming a member you can ask questions to more experience marketer.
  7. 7. • Don't need any experience. Just practice business skills and knowledge and obtain the mastery experience . (Fu Dai a, 2011)
  8. 8. • Both full-time and part-time. • The competition amongst peers is non- threatening
  9. 9. • Decent bonuses and numerous incentives are given to top-workers
  10. 10. • The fees to start-up are low. • They offer a strong support system. • Good examples help lead the way.
  11. 11. DISADVANTAGES OF MLM…
  12. 12. When planning to create a downline… it can COST.
  13. 13. •A lot of MONEY is usually spent on gas for your car, eating out, and hotel rooms.
  14. 14. • Some companies only pay for recruiting and do not give out a commission based upon total sales. This is pyramiding and it is ILLEGAL!!!
  15. 15. MLM ON ISLAMIC PERSPECTIVE…
  16. 16. HALAL or SYUBHAH
  17. 17. Sales the product at higher price so UPLINE can enjoy higher rate return
  18. 18. If downline FAIL to achieve this target, maybe they would NOT be entitled to receive any COMMISSION
  19. 19. • Some MLM companies manipulate their product, coerce the member to use their product or sell haram products. All these activities are Cleary prohibited or… HARAM!!
  20. 20. TOP 10 MLM COMPANY IN 2010
  21. 21. TOP 10 MLM COMPANY IN 2010 1. Amway (M) Sdn Bhd 2. Avon Cosmetic (M) Sdn Bhd 3. Cosway (M) Sdn Bhd 4. Elken Sdn Bhd 5. Extra Excel (M) Sdn Bhd 6. Hai-O Marketing Sdn Bhd 7. Herbalife Products (M) Sdn Bhd 8. RZ Corporation Sdn Bhd 9. Tupperware Marketing (M) S/B 10. Zhulian Marketing (M) Sdn Bhd
  22. 22. CONCLUSION So, how much the entrepreneurs will be able and are willing to LOSE if MLM doesn’t work? Is it fit with Islamic perspective? THINK ABOUT IT…
  23. 23. • Bloch, B. (1996). Multilevel marketing: what's the catch? Journal of Consumer Marketing, 18 - 26. • Fu Dai a, K. Y. (2011). Chinese immigrants in network marketing business in Western host. International Business Review. • Bakar, A. A. (2009, 04 20). Need to change public view on Multi-Level Marketing.
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