The multi-level marketing (MLM) business model has faced significant challenges over the past five years, with iconic companies like Avon and Tupperware experiencing sharp declines in stock value and profitability due to shifts away from traditional direct selling and increased reliance on recruitment-based sales strategies, which have proven unsustainable in modern markets.

Despite these challenges, the MLM industry continues to recruit millions annually, driven by promises of 'unlimited income' and the appeal of flexible work, although data shows high churn rates and financial losses for the majority of participants, raising questions about the model's long-term viability.

Some companies, such as Natura's Avon segment, have transitioned to hybrid models incorporating both direct sales and MLM elements, while others like Tupperware have diversified their sales channels by partnering with retail stores, reflecting broader trends of adaptation in response to market saturation and changing consumer preferences.

During the COVID-19 pandemic, MLM companies such as OptumRx and Cigna experienced significant revenue growth due to increased demand for healthcare-related products and services, but their market revenues returned to pre-pandemic levels by 2021 as vaccination campaigns and lower-cost medication availability stabilized market dynamics.

The pandemic also heightened interest in health and wellness products, a sector heavily represented by MLM companies like Herbalife and Amway, further driving their growth during this period.

MLM companies leveraged the pandemic-induced shift to digital platforms, enabling recruitment and sales through online channels, which reduced the need for traditional in-person sales and expanded their reach globally.

However, the post-pandemic economic climate has exacerbated challenges for MLM companies, as rising costs of living and stagnant wages have eroded workers' purchasing power, making recruitment and retention more difficult in a transformed labor market focused on employee wellness and hybrid work models.

Traditional direct selling companies like Avon and Tupperware, once iconic in the industry, have struggled to adapt to modern market demands, with Avon transitioning to an MLM model under new ownership and Tupperware facing financial instability, including a 90% drop in stock value over five years and warnings of potential bankruptcy.

Avon, once a prominent direct selling company, transitioned to an MLM-style model in the early 2000s but faced continuous revenue decline, eventually selling its North American business to LG Household & Health Care and its global operations to Natura, which now operates Avon as a classic MLM company focused on recruitment and inventory purchases rather than direct sales to end-users.

Tupperware, another iconic direct selling company, has struggled in recent years, experiencing a 90% drop in stock value over the last five years and warning of potential bankruptcy, while also shifting to selling products in retail stores like Target to move away from its MLM-style party plan model.

One common cause of financial struggles or closures for MLM companies is the inherent flaws in their business model, such as market saturation and reliance on recruitment rather than retail sales, which often leads to unsustainable growth and high churn rates among participants.

Economic downturns and external crises, such as the COVID-19 pandemic, have exacerbated financial difficulties for MLM companies by reducing consumer spending and disrupting supply chains, which particularly impacted small and medium-sized businesses reliant on MLM structures.

During economic downturns or periods of social change, MLM companies often adapt by emphasizing customer retention and loyalty programs, as seen in broader retail strategies where businesses focus on retaining existing customers through personalized marketing and exceptional service.

MLM companies may also pivot their strategies to address shifting market needs, such as reevaluating product offerings to align with new consumer behaviors or leveraging digital transformation to optimize operations and enhance customer engagement.

Demographic groups most likely to be recruited into MLMs include women, particularly those over 40, who are often overlooked by traditional marketing and employment strategies despite their significant spending power and influence.

In recent years, younger generations, including Gen Z and Millennials, have also become a focus for MLM recruitment, as these groups are drawn to entrepreneurial opportunities and flexible work models, especially in the context of economic uncertainty and the rise of digital platforms that facilitate MLM operations.

The shift in recruitment strategies has been influenced by broader societal trends, such as the increasing importance of digital literacy and the appeal of remote work, which align with the preferences of younger demographics and have been accelerated by the pandemic's impact on traditional employment structures.

MLM companies in the health and wellness industry, such as Herbalife and USANA, often emphasize recruitment-driven profitability, where salespeople are incentivized to purchase their own inventory and recruit others, creating a pyramid-like structure that disproportionately benefits top earners while leading to high churn rates among recruits at the bottom levels of the hierarchy.

In contrast, MLM companies in the cosmetics industry, such as Avon and Tupperware, historically relied on direct sales to end-users but have struggled to adapt to modern market dynamics, with Avon transitioning to an MLM model and experiencing significant declines in revenue and stock value.

The rise of social media and influencer marketing has significantly impacted MLM companies by providing them with new avenues to reach and engage potential recruits and customers, leveraging platforms like Instagram, TikTok, and YouTube to amplify their brand messaging and create a sense of community and trust among followers.

Influencer marketing has proven particularly effective for MLMs as it allows them to tap into the credibility and relatability of influencers, who can sway consumer behavior and attract younger demographics such as Millennials and Gen Z.

The integration of social commerce features on platforms like TikTok and Instagram has further streamlined MLM operations, enabling direct purchases and fostering seamless interactions between influencers and their audiences.

Recent regulatory changes have significantly impacted MLM companies, with some countries proposing stricter controls, such as Taiwan's legislative amendment to shift from a reporting system to a licensing system for MLM businesses, aiming to increase regulatory density and prevent fraudulent practices.

Legal actions have also targeted MLM companies for unethical practices, as seen in Taiwan where distributors of Dongsen Global were fined for misleading recruitment activities, highlighting the enforcement of the Multi-level Marketing Management Law to curb deceptive methods and protect consumer rights.

The promise of financial independence and entrepreneurial success is a key factor in attracting individuals to MLMs, as these companies often market the opportunity to escape traditional employment and achieve unlimited income potential through self-directed efforts and recruitment-based commissions.

MLMs use psychological tactics such as promoting self-empowerment and financial freedom to attract and retain members, often framing their business model as a path to personal independence and wealth.

They employ strategies like 'brainwashing conferences' to instill a sense of belonging and success, emphasizing the importance of recruiting new members to expand the organization and increase commissions, which creates a cycle of dependency and commitment among distributors.

MLMs also leverage interpersonal relationships and social pressures, encouraging members to recruit friends and family, which not only expands their network but also ties members emotionally to the business, making it harder for them to leave despite financial losses or unmet expectations.

Over the past decade, public perception of MLMs has shifted significantly, with increasing skepticism due to their association with pyramid schemes and deceptive practices, as highlighted by the decline of iconic direct selling companies like Avon and Tupperware.

The rise of social media and digital platforms has amplified criticism of MLMs, exposing high churn rates, low income potential for participants, and the reliance on recruitment over retail sales, which has led to growing awareness of the inherent risks and inequities in the MLM business model.

Economic factors, such as the Great Recession and the COVID-19 pandemic, initially boosted MLM recruitment by targeting individuals seeking flexible income opportunities, but the subsequent exposure of financial losses and unsustainable practices has contributed to a decline in trust and popularity among the general public.

The multi-level marketing (MLM) business model has faced significant challenges over the past five years, with iconic companies like Avon and Tupperware experiencing sharp declines in stock value and profitability due to shifts away from traditional direct selling and increased reliance on recruitment-based sales strategies, which have proven unsustainable in modern markets.

Title:

Content: 'Direct Selling' - Avon, Tupperware - Is Extinct

Nov. 18, 2022 11:25 AM ETHLF, MED, NTCO, NUS, PRI, TUP, USNA3 Comments
Robert FitzPatrick
394 Followers

Summary

  • Direct Selling became obsolete generations ago. So how is it that millions today get recruited for "income opportunity" in "direct selling" and billions are traded on "direct selling" stocks?
  • Avon and Tupperware are cited by "multi-level marketing," or MLM, promoters as "proof" that MLM, e.g., Amway, Herbalife, is "direct selling."
  • Usable data on actual income and churn rates of MLM "direct sellers," market saturation, and retail sales to actual customers are not provided.
  • In fact, Avon and Tupperware for years have been walking dinosaurs, still trying to do "person-to-person" sales to end-users with commodity products, while MLMs hype "unlimited" income.
  • The shrunken and devolved state of Avon and Tupperware today reveals that direct selling is extinct. MLM is not, and never was, direct selling.

It is generally accepted that "direct selling" was killed off generations ago by mass merchandising, big box stores, mail-order and then the internet, among other societal changes. The "Fuller Brush man" is long gone. No one's at home. No one wants or needs or has time for a "personal" salesperson. Everything's in stores or online. And, even when "direct selling" still lived, no one ever went into that tough line of work thinking they would get rich from it.

Yet, each year, millions are recruited, and pay thousands, for the "opportunity" to work as "direct sellers," with promises and expectations of "unlimited" income. The number involved today is many, many times greater than ever worked in that "extinct" field decades ago. Billions are being traded on Wall Street for shares of "direct selling" companies. How can this be?

In my book, Ponzinomics, the Untold Story of Multi-Level Marketing, I document the death of "direct selling" and the 1945 invention of "multi-level marketing," or MLM. I describe how "MLM" falsely assumed direct selling's revered old identity. I trace MLM from its Adam, a little California-based company called "Nutrilite," to today's "industry" led by Amway, Herbalife (HLF) down 64% YTD, Nuskin (NUS) down 31%, USANA Health Sciences (USNA) down 49%, Primerica, Inc. (PRI) down 13%, and Medifast (MED) down 45%. MLM's financial solicitations for consumers to become "direct sellers" have reached into – and led to losses for – virtually every household in America.

In the newly invented "MLM," the main source of revenue shifted from end-user customers to the salespeople themselves who are incentivized to "be their own customer" by buying their own products. Obviously, no one makes money purchasing their own inventory, but MLM offered a unique reason to do so – "unlimited" income potential.

No More Need to Knock on Doors

All MLM "direct sellers" can potentially gain "unlimited" income by recruiting an "endless" chain of other "direct sellers." No need to pound the pavement and get rudely rejected at front doors any more. Each "direct seller" on the chain has to meet a quota to "qualify" for future rewards from their recruits who, in turn, are their "own customers" and recruiters too, ad infinitum. The chain can grow without continuous personal effort. The qualifying quota can usually be met by just making a personal monthly purchase of inventory. "Commissions" on all these transactions, all the way down to the "last ones in," flow up the chain. In the MLM pay plan, most of the total commissions go to the top 1%. So, all new "direct sellers" try mightily to recruit (and buy) their way to those top ranks. Of course, only a tiny few can ever be at the top.

Some people argued this is a pyramid recruiting scheme, inherently unfair and deceptive, and a counterfeit of direct selling. In the design and the pay plan, bottom ranks – the vast majority – will inevitably lose. They said constantly adding salespeople in any area destroys profitable retail selling potential, if any exists to start with. They cited data on 90-99% loss rates and huge churn rates among new "recruits" and asked, where are the retail "customers"?

While offering no data on retail customers or salespeople losses or market saturation, MLM promoters offered "proof" that MLM is direct selling by pointing to two long-established and respected direct selling companies in their ranks, Avon and Tupperware (TUP). Both companies were members of the Direct Selling Association, DSA, and both were "direct selling" icons, Avon for its "ladies" and Tupperware for its "parties." To any pyramid scheme accusations, MLM promoters indignantly countered: "Are you calling Avon and Tupperware pyramid schemes?"

Walking Dinosaurs

The truth for both companies is very different from the MLM-spin. Avon and Tupperware used to have differentiated products and real consumer demand. Their salespeople made money from their own retail sales. But moving into the 21st Century, Avon and Tupperware became walking dinosaurs, vestiges of the extinct era of "direct selling." They were still trying to base their businesses on their historical brands and on person-to-person retail sales to real customers, as direct selling companies always used to do.

Despite MLM's citing Avon and Tupperware, and thereby bestowing legitimacy on the "MLM" members of the Direct Selling Association, deep differences between those icons of the old era and MLM burst into public view in 2013-14. The two companies publicly quit the Direct Selling Association, charging ethics violations and DSA-member connections to pyramid schemes.

Avon's Long Good-Bye

Avon had been a true direct seller for decades before MLM was invented. But as the door-to-door model faded, Avon began a long decline. In 2000, Avon began shifting its focus to "incentivizing" salespeople to recruit more salespeople and getting them to buy inventory, MLM-style. In 2009, during the Great Recession, Avon ran its most expensive ad in history, on television during the Super Bowl. The ad never mentioned any Avon products! It only solicited "salespeople." Still, global revenue dropped continuously over the next 10 years. Avon stock value fell from over $30 to just over $3.

Finally, Avon split off its faltering North American business and sold it to the Korean company, LG Household & Health Care. Avon claimed to have 250,000 sales representatives in North America. The remaining global business was later sold to the Brazilian MLM, Natura (NTCO) down 50% YTD, which also owns the retailer, Body Shop. Though Avon global was much larger, Avon shareholders traded 3 shares of Avon for just one in Natura.

The Korean-owned segment of Avon in North America is now classic MLM, selling the proverbial MLM "income opportunity" along with "health" supplements, make-up, jewelry, clothing, scented candles, even toothpaste.

On the Canadian Avon website, Avon promotes the "income opportunity," urging prospects in large bold black type: "Think big. Sell Avon part-time, full-time, you decide how much! It’s your business, your way!"

A disclosure (legally required in Canada, but not in the USA) appears midway down a long webpage in tiny, barely visible gray lettering: "The 2020 earnings of a typical Avon Leadership Representative was between $0 and $2,620 in commissions and bonuses." That's $0 to $50 a week, before subtracting all costs! And the "disclosure" does not break out how much of that tiny return comes from personal sales or the "downline."

Avon quietly rejoined the Direct Selling Association. The Brazilian company, Natura, which took over Avon's global business in 2020, has lost over 60% of its stock value in the last year.

Tupperware on the Brink

Tupperware was one of the first "party plan" companies, which are technically a small subset of MLM. They employ an "endless" recruiting chain, but are more rooted in retail sales transacted at "parties." Tupperware used to have a popular brand with innovative, differentiated products. But, as true direct selling began to disappear, Tupperware went into decline. It added MLM-type "health and beauty" commodities to bolster recruiting appeal but then deleted them. This year, it began also selling its products in Target department stores. Its kitchen-related goods are generally not distinct from other brands. A 10-months "Income disclosure" for Canada (not published in the USA) showed that half the "party planners" were classified "inactive," earning less than $30 for the period on average. 94% of the "active" ones reportedly received about $12 a week on average, before expenses.

In the last 5 years, the stock value of Tupperware has dropped over 90%. Its latest financials warned investors the company may violate loan agreements, setting off speculation Tupperware might declare bankruptcy.

The shrunken and devolved state of Avon and Tupperware, the most famous brand-icons of "direct selling," makes citing them as a defense of "multi-level marketing" as extinct as their old business model.

This article was written by

394 Followers
Robert L. FitzPatrick is the author of the new book, Ponzinomics, the Untold Story of Multi-Level Marketing (2020),the first comprehensive history and analysis of the "MLM" phenomenon, addressing its political influence, propaganda techniques and use of cult persuasion. FitzPatrick is an expert in examining and revealing deception and fraud in Ponzi schemes, pyramid schemes and bogus home-based businesses. He served as expert or consultant in more than 30 court cases involving pyramid schemes and multi-level marketing. He is co-author of False Profits (1997), an examination of the values and beliefs that support the delusions of pyramid schemes. He was featured on NBC Dateline, ABC World News, and CBS 60 Minutes, the documentary film, Betting on Zero and the podcast, The Dream.He has been quoted in many newspapers around the world, including the New York Times and Wall Street Journal. His booklet, Pyramid Nation, has been translated to Chinese and used by government regulators in writing China's first laws on pyramid schemes. His booklet, "The 10 Big Lies of Multi-Level Marketing", has been translated into four languages and posted on numerous websites. His White Paper, "The Main Street Bubble", which details the extensive influence-buying of the direct selling industry was featured in a CNBC Documentary, Selling the American Dream. In 2005, he delivered a seminar to in Colombo, Sri Lanka to central banking representatives from that country as well as India, Bangladesh, Bhutan, Maldives and Nepal. Robert FitzPatrick has developed informational resources for consumers, journalists, academics and regulators including a multi-media PowerPoint presentation and a statistical analysis of the losses suffered by participants in pyramid selling schemes. He also published a widely read booklet on the landmark federal case brought against the Amway Corporation. He is a expert network member of GLG Research, and Coleman Research Group, as well as other networks of experts who are referred to clients for consultation, speaking and report writing. In this capacity, he has provided expert consultation to financial many analysts who sought information about multi-level marketing companies and pyramid and Ponzi schemes. Robert FitzPatrick co-founded and serves as president of Pyramid Scheme Alert, the first international organization to expose and prevent pyramid scheme fraud. He personally responds to hundreds of consumer and news media inquiries each year. He has served as consultant and expert witness for Attorney General or State Attorney offices in four states, the US Dept. of Justice, and in numerous cases involving distributor fraud and pyramid schemes. Robert FitzPatrick is not an investor in multi-level marketing companies. He has never owned and never plans to own stocks of multi-level marketing companies. He has never been compensated based on any stock's performance. He does not offer investment advice and he is not an attorney.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This article is for educational purposes only. It discusses fundamentals of the "direct selling" business model and the evolution of "multi-level marketing."

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Despite these challenges, the MLM industry continues to recruit millions annually, driven by promises of 'unlimited income' and the appeal of flexible work, although data shows high churn rates and financial losses for the majority of participants, raising questions about the model's long-term viability.

Some companies, such as Natura's Avon segment, have transitioned to hybrid models incorporating both direct sales and MLM elements, while others like Tupperware have diversified their sales channels by partnering with retail stores, reflecting broader trends of adaptation in response to market saturation and changing consumer preferences.

During the COVID-19 pandemic, MLM companies such as OptumRx and Cigna experienced significant revenue growth due to increased demand for healthcare-related products and services, but their market revenues returned to pre-pandemic levels by 2021 as vaccination campaigns and lower-cost medication availability stabilized market dynamics.

Title:

Content: There were 2,104 press releases posted in the last 24 hours and 271,508 in the last 365 days.

Pharmacy Benefit Management Market Analysis with Size, Growth Drivers, Trends and Key Players at Douglas Insights

Douglas Insights

The leading players in the market are CVS Caremark Corporation, Express Scripts Holding Company, McKesson Corporation, OptumRx Inc., and Prime Therapeutics LLC.

DOUGLAS, ISLE OF MAN, October 18, 2022 /EINPresswire.com/ -- What is Pharmacy Benefit Management?

Pharmacy benefit management (PBM) is a third-party administration of prescription drug programs for managed care organizations, self-insured companies, and government agencies. PBMs use their buying power, clinical expertise, and formulary management to negotiate discounts and rebates from drug manufacturers. They also manage the process of approving which drugs are covered by insurance plans and develop strategies to encourage the use of lower-cost generic drugs.

The pharmacy benefit manager industry has come under fire in recent years for the high prices they charge for prescription drugs and their lack of transparency around pricing. However, PBMs still play an important role in helping to control costs for insurers and employers.

Pharmacy Benefit Management Market Size Analysis:

The global pharmacy benefit management market was valued at USDxx billion in 2019 and is expected to reach USDxx billion by 2027, growing at a CAGR of xx% during the forecast period.

The pandemic of COVID-19 had a positive effect on the global market. Several major players, including OptumRx, Inc. and Cigna, reported substantial revenue growth. By 2021, however, due to the completion of vaccination campaigns in the majority of countries and the availability of a wide variety of medications at a lower cost, the market revenue of key companies had returned to pre-pandemic levels.

Compare and choose your best-fitting market report here- https://douglasinsights.com/pharmacy-benefit-management-market

Pharmacy Benefit Management Market Drivers:

The global pharmacy benefit management market is growing due to several factors. The most important factor is the rising cost of healthcare. As healthcare costs continue to rise, more and more employers are looking for ways to reduce their costs. One way to do this is by using a pharmacy benefit manager (PBM). PBMs are third-party companies that administer prescription drug benefits for employers and health plans.

The increasing prevalence of chronic diseases among the world's population is increasing the demand for treatment alternatives. As a result, numerous large pharmaceutical companies are focusing on the development of expensive brand-name drugs for the treatment of chronic diseases. This has led to a significant increase in pharmaceutical spending over the past few years.

This, along with an increase in prescription filings in recent years for a variety of chronic diseases such as cardiovascular diseases, chronic lung diseases, and others, is driving up the cost of healthcare. According to a survey report by SingleCare Administrators in 2022, an estimated 4 billion prescriptions are dispensed annually in the United States, which is also anticipated to see a significant increase in the number of prescription filings within the next few years.

Thus, a significant increase in the cost of drugs, coupled with a rise in the number of prescriptions filed worldwide, is resulting in a rise in the health care burden. This has resulted in increased demand and adoption of these services to reduce drug costs and manage pharmaceutical spending around the world, as well as contributed to market growth during the study period.

Regional Outlook:

The North American region is expected to dominate the global pharmacy benefit management market due to the presence of a large number of players in the region. The US is the largest market for pharmacy benefit management due to the high prevalence of chronic diseases, rising costs of healthcare, and government initiatives to control healthcare costs.

Europe is expected to be the second-largest market for pharmacy benefit management due to the presence of a large number of pharmaceutical companies in the region. Asia Pacific is expected to be the fastest-growing market for pharmacy benefit management due to the increasing prevalence of chronic diseases, rising costs of healthcare, and government initiatives to control healthcare costs.

Browse the full report for market size, demands, trends, opportunities, growth analysis and many more here- https://douglasinsights.com/pharmacy-benefit-management-market

Pharmacy Benefit Management Market Keyplayers Analysis:

The global pharmacy benefit management market is highly consolidated with the top five players accounting for a significant share. The leading players in the market are CVS Caremark Corporation, Express Scripts Holding Company, McKesson Corporation, OptumRx Inc., and Prime Therapeutics LLC. These companies hold a strong position in the market due to their large customer base, extensive product portfolio, and widespread geographical presence.

The key players in the pharmacy benefit management market are focused on strategies such as mergers & acquisitions, new product launches, and expansions to gain a competitive edge in the market. For instance, in March 2018, CVS Caremark Corporation acquired Aetna Inc., one of the largest health insurance companies in the US. This acquisition helped CVS Caremark to expand its product portfolio and customer base. Similarly, in May 2018, McKesson Corporation acquired Rxcrossroads Pharmacy Services LLC from AmerisourceBergen Corporation. This acquisition expanded McKesson’s specialty pharmacy business and added new capabilities in patient support services.

Key Questions Answered In This Report

• Covid 19 impact analysis on global Pharmacy Benefit Management industry.
• What are the current market trends and dynamics in the Pharmacy Benefit Management market and valuable opportunities for emerging players?
• What is driving Pharmacy Benefit Management market?
• What are the key challenges to market growth?
• Which segment accounts for the fastest CAGR during the forecast period?
• Which product type segment holds a larger market share and why?
• Are low and middle-income economies investing in the Pharmacy Benefit Management market?
• Key growth pockets on the basis of regions, types, applications, and end-users
• What is the market trend and dynamics in emerging markets such as Asia pacific, Latin America, and Middle East & Africa?

Unique data points of this report
• Statistics on Pharmacy Benefit Management and spending worldwide
• Recent trends across different regions in terms of adoption of Pharmacy Benefit Management across industries
• Notable developments going on in the industry
• Attractive investment proposition for segments as well as geography
• Comparative scenario for all the segments for years 2018 (actual) and 2031 (forecast)

Table of Content:

Chapter 1. Preface
1.1. Report Description
1.1.1. Study Purpose
1.1.2. Target Audience
1.1.3. USP and Key Offerings
1.2. Research Scope
1.3. Research Methodology
1.3.1. Phase I – Secondary Research
1.3.2. Phase II – Primary Research
1.3.3. Phase III – Expert Panel Review
1.3.4. Assumptions
1.4. Market Segmentation

Chapter 2. Executive Summary
2.1. Global PBM Market Portraiture
2.2. Global PBM Market, by Services, 2017 (US$ Bn)
2.3. Global PBM Market, by Business Model, 2017 (US$ Bn)
2.4. Global PBM Market, by Geography, 2017 (US$ Bn)

Chapter 3. Pharmacy Benefit Management (PBM): Market Dynamics and Outlook
3.1. Market Overview
3.2. Drivers
3.3. Challenges
3.4. Opportunities
3.5. Attractive Investment Proposition, by Geography, 2017
3.6. Competitive Analysis: Global PBM Market, by Key Players, 2017

Chapter 4. Global Pharmacy Benefit Management (PBM) Market, by Services, 2016-2026 (US$ Bn)

Chapter 5. Global Pharmacy Benefit Management (PBM) Market, by Business Model, 2016-2026 (US$ Bn)

Chapter 6. Global Pharmacy Benefit Management (PBM) Market, by Geography, 2016 – 2026 (US$ Bn)

Chapter 7. Company Profiles
7.1. CVS Health
7.1.1. Business Description
7.1.2. Financial Information (Subject to Data Availability)
7.1.3. Product Portfolio
7.1.4. News Coverage
7.2. Express Scripts Holding Company
7.3. Cigna Corp.
7.4. Optumrx, Inc.
7.5. Anthem
7.6. Walgreens Boots Alliance, Inc.
7.7. Medimpact Healthcare Systems, Inc.
7.8. Rite Aid Corp
7.9. DST Systems, Inc.
7.10. Prime Therapeutics LLC
…………..Continued

*More companies can be added in Detailed Report.

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Pharmacy Repackaging Systems Market: https://douglasinsights.com/pharmacy-repackaging-systems-market
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Pharmacy Dispensing Machines Market: https://douglasinsights.com/pharmacy-dispensing-machines-market

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The pandemic also heightened interest in health and wellness products, a sector heavily represented by MLM companies like Herbalife and Amway, further driving their growth during this period.

MLM companies leveraged the pandemic-induced shift to digital platforms, enabling recruitment and sales through online channels, which reduced the need for traditional in-person sales and expanded their reach globally.

However, the post-pandemic economic climate has exacerbated challenges for MLM companies, as rising costs of living and stagnant wages have eroded workers' purchasing power, making recruitment and retention more difficult in a transformed labor market focused on employee wellness and hybrid work models.

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HR professionals explore future of post-pandemic workplace

BUSINESS
By Wainaina Wambu | May 29th 2022 | 3 min read
By Wainaina Wambu | May 29th 2022
BUSINESS

Since 2020, the world of work has never been the same. The workspace has become more flexible and dynamic.

Models such as remote and hybrid working are now the norm in even developing markets like Kenya. This is amid the acceleration of technology and automation.

Liaison Group Chief Executive Tom Mulwa noted that in the early days of the pandemic, it was hard to measure workers’ productivity as systems were not in place yet.

But now it is better and companies have since embraced the new normal of work.

“In the last two years, we’ve had tools good enough to measure production. And if you look at the results coming from the sectors of the economy, even in terms of GDP (gross domestic product), the production levels have actually improved,” he said.

Mr Mulwa was speaking on Thursday during an engagement forum with human resource professionals exploring the future of work post-pandemic.

The forum, convened by the financial services firm, discussed priorities and existing challenges in the revolutionised workplace.

Mr Mulwa pointed out that the labour demands of the modern talent space had reshaped the thinking of organisations.

“Some of the policies adopted to ensure a conducive workplace post-pandemic include investing in employee wellness programmes, policies on remote and hybrid working and regularly checking in on employees,” he said.

The HR industry, he added, had reshaped its role and helped employees quickly adapt to a transformed workplace.

Economy recovers

He said the workplace transformation is amid a tough reality for workers owing to a rising cost of living and stagnant wages.

This is even as the economy recovers, growing by 7.5 per cent last year compared to a negative growth of 0.3 per cent in 2020, according to the Economic Survey 2022.

“The inflation rate last year was at 6.3 per cent while the average earnings for workers rose at a slower pace. For the last two years, the average worker’s purchasing power has been eroded by over five per cent,” Mr Mulwa said.

He said challenges that were cropping up in the post-pandemic workplace include an increase in screen time for workers as the focus for organisations shifted to digital.

This led to emerging trends such as digital exhaustion.

Safaricom Chief Human Resource Officer Paul Kasimu said employees were now at the centre of everything that drives an organisation.

He said even with the increased automation, human beings were far from being replaced in the workplace and job roles could only keep evolving.

“Individuals will still be required to do more engagements ensuring that they drive strategy (and) add value to what the machines are doing,” he said.

Mr Kasimu said challenges with models such as hybrid was difficult to build a company culture.

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Traditional direct selling companies like Avon and Tupperware, once iconic in the industry, have struggled to adapt to modern market demands, with Avon transitioning to an MLM model under new ownership and Tupperware facing financial instability, including a 90% drop in stock value over five years and warnings of potential bankruptcy.

Avon, once a prominent direct selling company, transitioned to an MLM-style model in the early 2000s but faced continuous revenue decline, eventually selling its North American business to LG Household & Health Care and its global operations to Natura, which now operates Avon as a classic MLM company focused on recruitment and inventory purchases rather than direct sales to end-users.

Tupperware, another iconic direct selling company, has struggled in recent years, experiencing a 90% drop in stock value over the last five years and warning of potential bankruptcy, while also shifting to selling products in retail stores like Target to move away from its MLM-style party plan model.

One common cause of financial struggles or closures for MLM companies is the inherent flaws in their business model, such as market saturation and reliance on recruitment rather than retail sales, which often leads to unsustainable growth and high churn rates among participants.

Economic downturns and external crises, such as the COVID-19 pandemic, have exacerbated financial difficulties for MLM companies by reducing consumer spending and disrupting supply chains, which particularly impacted small and medium-sized businesses reliant on MLM structures.

Title:

Content: Thousands of small businesses have gone bankrupt in Morocco.
Is there a rescue plan?
Rabat – Young Moroccan woman Hayat Nouyoura struggles every day to save her company from the specter of bankruptcy that threatens her, and she is armed with patience, hope and steadfastness so that she does not end up closing a dream she persevered so hard to achieve.
Hayat tells Al Jazeera Net that after experience and professional experience decided in 2018 to launch a company specialized in the field of communication in Casablanca, to be surprised by the difficulties and challenges increased by the complications and severity of the repercussions of the health crisis that the world has witnessed since 2020 due to the Corona pandemic.
The fate of this young woman ’ s company hangs in the balance, looking for opportunities and offers to continue, but now she can barely pay her dues: “I don ’ t earn much from my company, I ’ m on the verge of bankruptcy, but I ’ m struggling to survive while waiting for an opportunity to start again and succeed. ”
Although its project in the economic capital - where there are many opportunities compared to the rest of the Kingdom - Hayat complains about the lack of offers available to very small companies, and says that the terms of the deals are suitable only for medium and large companies, while small and very small companies are excluded, and opportunities are limited, so most of them are going bankrupt.
Bankruptcy of thousands of companies
If Hayat resists to keep her company alive and grapples with the economic crisis, other companies are doomed to bankruptcy.
The results of a study carried out by the Office of Studies "Anfurisk" showed that about 12,000 companies went bankrupt last year, an increase of 17.4% compared to 2021.
The majority of bankruptcies occurred in very small companies (99.2%), while SMEs accounted for 0.7%.
According to the head of the Moroccan Confederation of Very Small, Small and Medium Enterprises, Abdallah El Farki, this figure reflects only companies with legal personality that have officially declared bankruptcy before the courts, while the real number exceeded 20,000 companies.
Al-Farki explained that most of the very small companies are individual companies, which are the most affected and suffering due to the Corona crisis, the global rise in prices and the absence of government support, adding that these companies are not counted as they do not declare bankruptcy with the competent authorities.
Corporate structure in Morocco
Companies in Morocco are divided into very small, small, medium and large companies.
• Very small companies: the number of transactions does not exceed 3 million dirhams (about 300 thousand dollars), and the number of workers less than 10 people.
• Small businesses: transactions between AED 3 million and AED 50 million (between $300,000 and $5 million).
• Medium companies: transactions between 50 million and 75 million dirhams (between 5 million and 7.5 million dollars).
Large companies: Their turnover exceeds 75 million dirhams ($7.5 million) or employ more than 200 workers.
The corporate structure in Morocco consists of 93% of micro, small and medium enterprises (MSMEs) (64% of MSMEs and 29% of MSMEs), while large companies represent only about 7%, according to a study by the High Commission for Planning, and almost two-thirds of these companies (63%) are concentrated in the regional area of Casablanca and Tangier.
Micro, small and medium enterprises provide about 74% of jobs in the formal sector, according to the Moroccan Observatory for Micro, Small and Medium Enterprises.
These companies dominate Morocco ’ s production fabric, accounting for 99.6% of more than 296,000 companies.
30% of micro, small and medium enterprises are engaged in trade and 23% in construction.
According to the Observatory, these companies account for 41% of the total turnover of companies in Morocco, 26% of export-oriented transactions and 35% of value added.
Causes of Bankruptcy
The report attributed the bankruptcy of these companies to the repercussions of the Russian-Ukrainian war and the subsequent rise in the prices of raw materials and inflation jumps that reached record levels, as well as the weak resort to preventive measures provided for by the legal system for companies and trade.
Abdullah al-Farki believes that the bankruptcy of small and very small companies in particular is not related to the current circumstances, but is due to other structural reasons, as they do not benefit from the financing of banks and do not have a share of public deals.
He pointed out that the deals law issued in 2013 gives 20% of public deals to small, medium and very small companies, but it does not apply.
He added that the equipped industrial zones allocate real estate containers exceeding 1000 meters, which are specifications that meet the needs of large and medium companies and do not take into account the capabilities of small and very small companies, which need only between 100 and 200 meters only.
For his part, economic analyst Badr Zaher Azraq points out that startups, which are not more than two years old, face great difficulties in their beginnings and the rate of bankruptcy is very high.
Although the government encourages the establishment of small and very small businesses through various programs, these programs, according to Blue, are limited to providing funding and tax exemptions for a limited period, while not providing real support at the level of legal, marketing and infrastructure.
A structural problem.
The Minister of Economic Inclusion, Micro Enterprise, Employment and Competencies Younis Al-Sakouri had acknowledged in parliament the difficulties faced by very small, small and medium enterprises.
He said only 12% of SMEs had access to banking resources, describing these difficulties as a “structural problem. ”
The minister announced some steps to overcome this situation, including simplifying the procedures of public deals less than 5 million dirhams ($500,000), pointing out that his ministry prepared the decree to support small and very small companies in the framework of investment.
The National Agency for the Recovery of Employment and Competencies launched last week the “Generation of Resistors ” operational plan, which aims to support 100,000 project holders and self-contractors, as well as micro-enterprises between 2023 and 2026.
Investment Charter
In turn, Al-Farki calls on the government to give greater attention to small and very small companies in the formulation of any economic programs, given their important contribution to maintaining social peace being the first operator in the country.
To solve the problem of access to finance, al-Farki proposes the creation of a state bank to finance these companies, which are excluded by commercial banks because they are not profitable for them.
Investors are counting on the new investment charter, which came into effect last December, to overcome the difficulties faced by micro, small and medium enterprises.
Azraq points out that this charter is intended to help companies, especially those wishing to invest in new sectors or remote areas, as they will benefit from subsidy programs and tax incentives.
The spokesman expects that these trends will have a positive impact on small and very small companies, and push to strengthen their resilience in the face of the crises they face in the early days of their establishment.
Source: The Island

During economic downturns or periods of social change, MLM companies often adapt by emphasizing customer retention and loyalty programs, as seen in broader retail strategies where businesses focus on retaining existing customers through personalized marketing and exceptional service.

Title:

Content: With the International Monetary Fund forecasting that South African GDP will grow only 1% this year against a backdrop of load shedding and logistics disruptions, retailers will need to focus on diversification into new sectors as well as expanding market share at the expense of their competitors, if they are to grow and thrive.

That’s according to Steven Heilbron, CEO of Capital Connect, who says that weak consumer confidence, a flat economy and uncertainty ahead of the national elections are all headwinds for the retail sector.

This follows several difficult years of trading, with StatsSA data showing that overall retail trade sales decreased by 1% in 2023 compared with 2022 – despite stronger than expected sales over the December period. “Even against this backdrop, we have seen some retailers take the gap and grow their businesses,” says Heilbron.

He says that he has noted that successful retail businesses implement the following tactics and strategies during difficult times:

* Focus on growth markets: While the StatsSA data shows downward trends in most retail sectors, there are exceptions such as clothing and textiles sectors. Retailers should look at ways to move into these markets, whether that’s by acquiring or partnering with a complementary business or adding new product lines to their offering.

* Segment the customer base and hit each segment with the right value proposition: Many retailers are focused on trade by foot traffic rather than thinking about who their best customers are and how to attract them. A winning strategy is to market different propositions to different segments to gain share and cover the market. For example, retailers can target great deals on essential goods at mass market customers, and one-hour delivery or premium products at higher LSMs.

* Improve inventory management: Optimising inventory levels and reducing excess stock can free up capital and improve cash flow. Retailers can use data analytics and demand forecasting tools to better align inventory levels with customer demand and minimise carrying costs.

* Focus on customer retention: During economic downturns, retaining existing customers becomes crucial. Retailers can invest in loyalty programs, personalised marketing, and exceptional customer service to keep customers coming back.

* Make strategic bulk buys: A well-timed bulk buy can enable a retailer to purchase inventory at a lower cost than usual, to sell it for a higher profit margin. In addition, a retailer could buy products at a discounted rate to offer deals that entice more customers through the door. For example, liquor dealers can stock up on popular products before the duties are hiked, to boost profits.

* Find new points of presence: Retailers can grow by finding new points of presence, such as containerised coffee shops, pop-up stalls at events, or ecommerce websites.

* Consider high-margin convenience offerings: Retailers can grow revenues by offering grab-and-go meals or coffee to busy consumers. Using some floor space in this way can be a highly efficient way to attract customers and add a new revenue stream.

Heilbron says: “During tough economic times, retailers must seize opportunities as they arise. Fintech providers are making it easier for retailers to access the funds they need to grow and thrive.”

MLM companies may also pivot their strategies to address shifting market needs, such as reevaluating product offerings to align with new consumer behaviors or leveraging digital transformation to optimize operations and enhance customer engagement.

Title:

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As we combat the current inflation crisis and market downturn, it is becoming more and more difficult for businesses to remain competitive. Increasingly, organizations are looking for ways to cut costs and optimize existing assets and processes.

For many, this will mean pausing all non-essential projects, digital transformation initiatives included. If your organization already has working digital strategies and processes, spending money on newer, shinier digital projects feels counterintuitive.

Unfortunately, this intuition is flawed. It is a relic of a recently bygone age to assume that digital projects are anything but essential during a market downturn. The business world is becoming more digital every day, despite the market. With the threat of recession looming, Gartner still predicts worldwide IT spending to reach $4.4 billion this year. Moreover, in a 2020 survey, Deloitte found that more digitally mature companies reported 45% revenue growth compared to 15% for lower maturity organizations. If able, organizations must embrace digital change or risk being left behind.

Addressing digital strategy

While keeping up with digital trends is important, how organizations go about creating a digital strategy can be the difference between keeping up and getting ahead of competitors. However, what level and kind of digital work businesses should undertake will vary immensely between organizations.

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Pragmatically, this will inevitably mean investing a lot of time into research. For example, some organizations will benefit immensely from investing in automating their internal processes to save on labor costs. For others, investing the bulk of the digital budget into digital brand building, demand and lead gen programs, building content leadership and leveraging social media platforms to generate traffic would be more worthwhile.

Researching how competitors spend their digital budgets can also help inform your strategy, as you can gather market-tested data on what is and what is not worth the investment. This strategy can sit alongside broader internal and external data gathering. Although it can be painstaking to sift through, the more data collected on internal processes, staff satisfaction, digital customer experiences and end-user trends, the more targeted and effective the digital strategy will be.

Taking advantage of expertise

Something else to bear in mind is that many businesses do not effectively use their available expertise.

This may have something to do with the fact that many business leaders aren’t aware of their knowledge gaps. In our own research, we have found that 73% of UK family firm board members have no digital competencies. Concerningly, Salesforce has found similar knowledge gaps. In a 2022 Salesforce survey of more than 23,000 workers across 19 countries, 54% of senior leadership respondents marked that they had the digital skills needed today. However, less than half of the managers and individual employee respondents agreed, meaning that senior leaders weren’t aware that they lacked adequate digital expertise.

Part of being digitally aware is knowing that the digital world moves at a fast pace and most senior business leaders do not have the time or capacity to keep up constantly. From there, becoming digitally mature involves integrating digital components across the organization and its business strategy. For this to happen, organizations need to start consulting with CTOs and digital teams on a much more serious level. This could mean involving senior IT leaders in the company’s board or creating a separate digital board to manage digital projects at a senior level. It could even mean looping in external consultants.

We are amid a digital skills crisis, but taking digital offerings seriously can help to retain IT staff and build out your customer offering while competitors pause their digital investments.

Getting ahead

There are clear benefits to digitalization. For example, automating your internal processes with AI can save on labor costs; conducting website testing can drive traffic; and improving digital marketing channels can improve customer engagement. And, if there was ever a moment for digitalizing, it’s when your competition is pulling back.

Moreover, as valuations are under increased pressure, digital strength can make all the difference. Digitalization is also seen as a key value driver for investors, as we are currently seeing strong links between financial performance and digital maturity. Investors are increasingly conducting digital due diligence as a valuation factor, so the smallest step can make the most significant difference.

As businesses battle factors like inflation, high-interest rates and low EBITDA arbitrage, investors are battling uncertainty as they look to allocate vital funds. In the long term, continuity is critical to investors as, at the end of the day, the safety of their investments is never guaranteed. Continuity is therefore a vote of confidence. Organizations that can continue building their digital strategies and innovating will encourage further essential investment.

Assuming that there is a budget available, digital transformation can be a safe route to seizing market share while others go on the defensive. The goal could be improving internal and external digital services; encouraging a high valuation or investment figure; long-term cost savings; or any other combination of reasons.

Regardless, a digital strategy can affect not only whether a business survives the downturn but how well it survives the downturn.

Stefan Sambol is cofounder and Partner at OMMAX

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Demographic groups most likely to be recruited into MLMs include women, particularly those over 40, who are often overlooked by traditional marketing and employment strategies despite their significant spending power and influence.

Title:

Content: Consumer Brands Are Leaving Trillions of Dollars Behind by Ignoring Women Over 40

This demo falls off of marketers’ radars and media plans entirely—at least until it’s time to sell you Prevagen

Introducing the Adweek Podcast Network. Access infinite inspiration in your pocket on everything from career advice and creativity to metaverse marketing and more. Browse all podcasts.

In 2021, when I was 37, I became a first-time car owner, first-time homeowner and first-time parent within a three-month span. After nearly two decades spent living in wildly expensive cities and focusing on my education and career, a global pandemic ushered in the rise of remote work and allowed me to move out of New York City while keeping a job in media. Under these new circumstances, I—and many people in my peer set—finally found myself with the time, resources and appetite to enter the life stages that my parents’ generation entered a decade younger.

As I met these milestones, I was struck by how much there was to buy to support this drastic lifestyle shift. After relying on public transportation to get around since I was 17, what type of car would I purchase, and who would insure it? After 20 years of only looking as far ahead as each 12-month lease, what kind of home would I buy, and where? What real estate agency would assist me? What bank would handle the loan? Where would I go for renovations, furnishings and upkeep? And in the transition from a “double income, no kids” household to a family of three, the spending opportunities were endless—from prenatal vitamins and maternity clothes to nursery fixtures, kids’ clothes and college funds. And that was before I hit a spendy, post-partum self-image reckoning, with its accompanying skin care, wardrobe, health tech and fitness expenses.

All of that spending should have been easy. Because I was not in my twenties, with its professional and financial precarity, and instead in my late 30s—15 years into a stable career and well-compensated—I had real money to spend in all these new categories. But as I went to choose a car, furnish a home and prepare for a baby with that cash burning a hole in my pocket (metaphorically speaking—I don’t carry cash, I’m not that old), I realized all the brands that should have been competing for my dollars didn’t seem to care all that much about winning my business.

Working in media, I know that the demographics of a publication’s audience are an incredibly important consideration when wooing advertisers to spend their marketing budgets with you. Media execs are incentivized to pursue a younger generation of users, trying to bolster the percentage of 18- to 34-year-olds in their audience so advertising partners know they’ve captured the trendsetters that marketers are so eager to get their products in front of. Older audiences are thought to be less influential and more set in their ways, not as susceptible to building affinities for or joining fandoms around new products. The (false) thinking goes that these consumers don’t have as much sway over others’ purchasing decisions as 20-somethings do and that they already know what product they’re going to buy and what brand they’re going to buy it from now until the end of time, goodbye.

When you turn 40 (which I recently did), you fall off of marketers’ radars and media plans entirely, into an abyss of invisibility—at least until it’s time to sell you Prevagen.

But what if brands rethought their approach (or lack of approach) to these audiences? What if they examined the fallacy that elder millennial and Gen X women have limited influence, unremarkable spending power, and entrenched brand preferences and, therefore, are no longer worth marketing to—and instead realized that we are among the most valuable audiences out there? These women are entering key spending categories later in life. They are extremely influential culturally and financially, and they are largely ignored by marketers—leaving a huge opportunity for the consumer brands that are smart enough to pay attention to them.

While the way college-educated knowledge workers like myself reacted to Covid-19 reshaped the housing market and created a subtle baby boom, the trend of meeting life stages later is detached from, and predates, these pandemic shifts. In 1980, the average woman married at 22; today, it’s 28, and the midlife first marriage rate among women has increased by 75% since 1990. In 1980, the median first-time homeowner was 29; now they are 35. In the last 30 years, birthrates among women in their 20s have declined, while they’ve risen for women in their late 30s and early 40s—a trend that is especially prevalent among college-educated, city-dwelling women with high household incomes. The idea that you have to reach women in their 20s in order to capture their entry into new life stages—and therefore their influence in new spending categories—is a dated one.

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Three of 2023’s most economically powerful people (Beyoncé, Kim Kardashian and Greta Gerwig) are women in their 40s, and Taylor Swift will age out of that coveted 18-34 demo this year—and their power is echoed by this demographic as a whole. When elder millennial and midlife women are ready to spend—whether on entertainment, tech, beauty, travel, groceries, auto or in areas like early parenthood that used to only be the province of younger women—they show up with influence and money. Women drive 70-80% of all consumer purchasing, either through buying power or influence, and women older than 50 drive $15 trillion in spending power—which is 27% of all consumer spending in the U.S. By 2030, women are expected to control much of the $30 trillion in wealth that is soon to transfer from baby boomers to younger generations—namely millennials, who will all be in their mid-30s to late-40s by then.

Despite this current and future financial power, most marketers are ignoring this demographic, and people like me are taking notice. Most women in this demo think consumer brands underestimate their spending power and intellect, and only 5-10% of marketing budgets are earmarked for an over-50 audience. Imagine the opportunity for brands that recognize and respect the power of these audiences and decide to enter this vacuum by marketing to us directly.

That includes earmarking bigger budgets to put ads in front of these audiences, but that’s not the only way to speak to this demo. Brands must make us feel more represented and supported in their creative campaigns and brand initiatives as well. When more than 90% of people over 40 can’t remember a brand using someone their age in marketing campaigns, casting midlife women can go a long way with customers (see: Bobbi Brown’s Jones Road Beauty). When three-quarters of millennial women say they want brands to speak about current realities with honesty and candor, those that avoid stereotypes and tropes by centering real customer voices and experiences will build trust and affinity (see: Dove’s beloved Real Beauty campaign). When the vast majority of millennial women believe that brands should actively make people’s lives better and hope to see brands advocate for policies that advance women’s rights, marketers should consider what advocacy campaigns align with both their brand value proposition and the pain points of the audience they wish to reach. (See: Bobbie’s Paid Leave For All partnership).

Initiatives designed to capture these audiences pay off. GM focuses on speaking to women’s concerns about car safety, and they’ve built a robust network of female car dealers. Buick has the highest female buyer representation in the U.S. of any automaker. L’Oreal has shifted to casting older models in its campaigns; the world’s biggest beauty company boasted sales up 9.4% in Q1 2024.

As my husband and I add a second child, a second car, and a new kitchen to our household, I have a lot of spending decisions to make, with few brand affinities that are fully entrenched in these areas and an interest in spending with brands that acknowledge my value. A challenge to marketers: Convince me to buy what you’re selling. I’m open to it.

In recent years, younger generations, including Gen Z and Millennials, have also become a focus for MLM recruitment, as these groups are drawn to entrepreneurial opportunities and flexible work models, especially in the context of economic uncertainty and the rise of digital platforms that facilitate MLM operations.

Title:

Content: People 's Daily Online > > Economy and Technology
This field "after 00" began to pick the big beam.
Wang Shaoxao
May 09, 2023 19: 29 | Source: People's Daily Online
Small number
Zhu HeCun, is a "00 post", entered a vocational and technical college in 2015 to study e-commerce major.
From the beginning of college, he has tried to do the role of "supervisor" in the e-commerce platform, and it has been 8 years.
The work of the "supervisor" refers to the customer's online purchase of supervision services, and the supervisor conducts one-to-one online supervision to urge him to make better use of his time and complete the goals set by the customer.
After this "strange" commodity went online, Zhu HeCun received a variety of orders for demand - supervised learning, exams, weight loss...
At present, Zhu HeCun 's supervision service is very popular on the Internet, "peak season" monthly sales of more than 1,000 units, shop fans more than 11,000, since the store has received nearly 40,000 supervision services. "Through this way, I helped customers achieve the goals of studying, civil servants, weight loss, etc., some customers even admitted to famous universities." Zhu HeCun said.
Today, in the youth entrepreneurship group, the younger "00" has also embarked on their entrepreneurial path.
According to the National Bureau of Statistics, the number of people who have become "post-2000" is about 80 million.
The new era is the era of dream seekers, but also the era of the majority of young people to achieve their dreams. The scientific research leaders in the manned space laboratory, the returnees who resolutely return to China to start their own businesses, the express brothers who travel the streets and alleys, and the network singer who dreams … these young figures are everywhere.
At present, the youth group is becoming more and more diverse, they are active in thought, distinctive personality, express strong desire, and yearn for life to shine.
At the same time, young people are also one of the most dynamic and innovative groups.
In recent years, mass entrepreneurship and innovation have continued to advance to a larger scope, a higher level and a deeper level, and have been deeply integrated with economic and social development.
In this context, imaginative and creative young people are increasingly becoming the new force of innovation and entrepreneurship, and are constantly making new attempts and explorations.
At the same time, the "00 post" is also a generation that loves to inherit traditional culture and promote the national spirit, and many of them combine traditional culture with entrepreneurship and break out of their own heaven.
Chen Wanjia, born in 2001, is the fourth generation of Yiwu brown sugar, and grew up smelling the taste of brown sugar.
He said: "Since my grandfather's generation, our family has been doing brown sugar business, and I began to contact brown sugar production in 2006."
At that time, our family was still a small individual, and there was no standardized production process.
In 2019, Chen Wanjia entered a vocational and technical college to study e-commerce, and in 2020, he started the road of entrepreneurship with the help of the school. “In Yiwu, every household is making brown sugar, but they are fighting for low prices.
In addition, he also participated in the formulation of the Yiwu brown sugar processing technical regulations with the old masters, and exported the "Yiwu standard" of ancient sugar; developed a syrup filtration and precipitation system to improve the quality of brown sugar; through process improvement, the brown sugar granulated, extended the shelf life of brown sugar, and improved the nutritional value of the unit weight of brown sugar.
While making the production process more standardized, Chen Wanjia is also thinking about how to better promote the brown sugar culture.
He tried to contact the resources of offline stores and participated in the holding of brown sugar culture festival, non-heritage cultural tourism, sugar making skills training and other activities under the guidance of relevant departments.
Over the past three years, Chen Wanjia has made continuous efforts to gradually get the brown sugar industry out of Yiwu in the era of digital economy, and consumers throughout the country, while also driving more than 400 sugar farmers and sugar masters to work, helping them increase their income.
The rapid development of the digital economy has provided opportunities for the development of e-commerce platforms, and has also expanded the space for the future development of young people, especially the “post-00 ” generation, creating more fresh jobs and unlimited possibilities.
For example, Taobao, which has been established for 20 years, is committed to providing a good soil for the entrepreneurial development of young people, helping the "00" entrepreneurial youth to realize their dreams, and the young people in Taobao are also using their unique understanding and perspective of the world to influence and change the platform, creating a more youthful, dynamic e-commerce entrepreneurial ecology.
Wang Yang, a researcher at the Institute of Social Development of the China Macroeconomic Research Institute, said that a diversified industrial system, a good innovation ecology, and precise support policies can provide a better environment and a stronger driving force for the entrepreneurial development of young people.
"After 00" is a generation that really grew up as "Internet natives" and is a generation that resonates with the tide of rapid economic development and national progress.
Industry experts said that in the vibrant entrepreneurial space created by the e-commerce platform, the "00 after" burst out of huge energy, and then, with the injection of more fresh blood, the e-commerce platform will continue to complete self-renewal, so that these creative young people's youth become more colorful.
(Editor: Guo Simiao, Lu Qian)
Public Number ： People 's Network Finance
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The shift in recruitment strategies has been influenced by broader societal trends, such as the increasing importance of digital literacy and the appeal of remote work, which align with the preferences of younger demographics and have been accelerated by the pandemic's impact on traditional employment structures.

Title:

Content: The Institute of Industrial Intelligence (MIC) released a survey on the use of delivery services by consumers in Taiwan in 2021, and found that 72% of consumers have used delivery services, and those aged 18 to 35 are the most frequent users of delivery services.
The top two platforms for consumers are foodpanda (78%) and Uber Eats (61%), ahead of other platforms such as Foodomo (6.5%), shrimp skin food delivery (5.1%) and street delivery (3.4%).
According to the MIC survey, as many as 80% of consumers are willing to start or renew in the future, and consumers who have used it are more willing to renew, as many as 99% of members are willing to continue using, and 92% of non-members are willing to continue using.
Senior industry analyst Hu Zili said that the survey reflected that Taiwan consumers have a high acceptance of delivery services, and 31% of consumers have subscribed to the membership, the future business whether to join the delivery system, will be given priority to assess whether it will affect the existing operations, it is recommended that "production idle, no delivery manpower, small and medium-sized micro businesses" these three categories of businesses can be given priority evaluation.
According to the MIC survey, the top five considerations for consumers to use delivery are "preferential discounts, high and low freight prices, convenience of service, and high and low price of meals or items, which can reduce the opportunity to reach people."
Hu Zili pointed out that the market share of Taiwan's delivery platforms has become stable, and the priority of operators at this stage is to consolidate the activity of members, increase consumption power, and accumulate more data, thereby generating more value-added services, and increasing the space and chips for bargaining with merchants and delivery staff.
According to the survey, 31% of consumers in Taiwan have subscribed members, the highest proportion of age group is 46 to 55 years old (36%), followed by 26 to 35 years old (32%); compared to gender difference, male (36%) subscribers more than female (27%), in addition, the parent group (35%) than non-parent (28%) subscription proportion.
Among the regions, Eastern and Outlying Islands had the highest subscription (40%), even more than Northern (35%).
Members are better than non-members in terms of frequency of use, diversity of items purchased, purchasing power and other indicators.
First, the frequency of use, nearly half (47%) of consumers are low-frequency users (use less than 2 times per month), mid-frequency users (use 3 ~ 10 times per month) accounted for 21%, high-frequency users (use more than 11 times per month) accounted for only 3.4%, MIC pointed out that the frequency of use of members is generally higher, mid-frequency users (44%) than non-members (24%), high-frequency users (8.6%) are also More than double the membership (3.1%).
For the purchase items, non-members are highly concentrated in food and beverages (91%), compared with a slightly lower proportion of members (85%), but other items are much more common than non-members, MIC said, members (34%) more often than non-members (17%), and members (27%) more often than non-members (14%). Supplies, and the proportion of members (25%) who deliver frozen and refrigerated food also significantly exceeds that of non-members (9%).
The MIC observed that the two major indicators of spending power, "Average spending per transaction" and "Maximum spending per transaction", can find that there is a large gap between members and non-members. 50% of members spend more than NT $300 per transaction, 14% more than non-members, and the proportion of members (13%) who spend more than NT $600 per transaction is higher than non-members (8%), and high-spending members (5.3%) who spend more than NT $1,000 + There are also more non-members (2.9%).
For "single maximum spending amount", 51% of members have a maximum single spending amount of more than 600 yuan, and 32% of non-members. For high spending amount of more than 1,000 yuan, 29% of members and 16% of non-members can be found.
Looking at the profiles of potential members in the future, Hu points out that there are four groups with the highest aspirations: women, young people, parents, and north-central consumers.
According to the survey, women (81%) showed higher willingness than men (76%) to start or continue using delivery services, and among all age groups, 18-25 year olds (89%) are the most willing, followed by 26-35 years old (85%), and 18-35 years old is also the only group in the whole age group, the proportion of willingness is more than 80%.
In addition, the willingness of parents (79%) is slightly higher than that of non-parents (78%), and consumers in the central (80%) and northern (79.6%) regions are also higher.
# Member # Non-Member # Consumer # MIC # Delivery

MLM companies in the health and wellness industry, such as Herbalife and USANA, often emphasize recruitment-driven profitability, where salespeople are incentivized to purchase their own inventory and recruit others, creating a pyramid-like structure that disproportionately benefits top earners while leading to high churn rates among recruits at the bottom levels of the hierarchy.

In contrast, MLM companies in the cosmetics industry, such as Avon and Tupperware, historically relied on direct sales to end-users but have struggled to adapt to modern market dynamics, with Avon transitioning to an MLM model and experiencing significant declines in revenue and stock value.

The rise of social media and influencer marketing has significantly impacted MLM companies by providing them with new avenues to reach and engage potential recruits and customers, leveraging platforms like Instagram, TikTok, and YouTube to amplify their brand messaging and create a sense of community and trust among followers.

Title:

Content: The Rise of Influencer Marketing: Power of Social Media

Instagram News TikTok YouTube

In the dynamic landscape of modern marketing, traditional advertising tactics are no longer the sole drivers of brand recognition. With the advent of social media platforms, a new form of promotion has emerged: influencer marketing. This innovative approach harnesses the power of social media influencers to reach vast audiences and deliver impactful brand messaging. It is an alluring strategy that has captivated both marketers and consumers alike.

Influencer marketing revolves around the collaboration between brands and popular social media influencers, who have amassed substantial followings across various platforms such as Instagram, YouTube, and TikTok. These influencers, with their engaging content and loyal fan bases, possess a unique ability to sway consumer perceptions and behaviors.

By partnering with influencers who align with their target demographics and brand values, companies can tap into an engaged audience that is receptive to their messaging. Unlike traditional advertising, influencer marketing feels more personal and organic, as it integrates seamlessly into the influencer’s content. This relatability and authenticity are the driving forces behind its success.

Notable influencers have the power to create trends, establish credibility, and influence purchase decisions. Their words carry weight, and their endorsements can have a profound impact on consumer behavior. This is particularly the case for Millennial and Gen Z consumers, who tend to be more receptive to influencer recommendations compared to traditional advertisements.

As influencer marketing gains momentum, industry experts agree that it is shaping the future of marketing. However, it is not without challenges. Ensuring transparency and authenticity in influencer-brand collaborations is of paramount importance. As a result, platforms and regulatory bodies are introducing guidelines to maintain ethical practices and protect consumers from misleading endorsements.

In conclusion, influencer marketing has revolutionized the way brands connect with consumers. By leveraging the power of social media influencers, companies can amplify their brand messaging, reach wider audiences, and nurture more meaningful connections with customers. As the marketing landscape continues to evolve, influencer marketing presents exciting opportunities for brands to tap into the power of social media and establish lasting relationships with their target audiences.

Frequently Asked Questions (FAQ)

What is influencer marketing?

Influencer marketing is a form of marketing that involves collaborating with popular social media influencers to promote brands and products. These influencers have built significant followings on platforms like Instagram, YouTube, and TikTok, and their endorsements have the ability to impact consumer behavior.

Why is influencer marketing effective?

Influencer marketing is effective because it feels more personal and relatable compared to traditional advertising. Influencers have a unique ability to connect with their audience and are seen as trustworthy figures. Their endorsements can influence purchasing decisions, especially among Millennial and Gen Z consumers.

What are the challenges of influencer marketing?

One of the challenges of influencer marketing is maintaining transparency and authenticity in influencer-brand collaborations. To address this, platforms and regulatory bodies are introducing guidelines to ensure ethical practices and protect consumers from misleading endorsements.

Influencer marketing has proven particularly effective for MLMs as it allows them to tap into the credibility and relatability of influencers, who can sway consumer behavior and attract younger demographics such as Millennials and Gen Z.

Title:

Content: A influencer has chosen to create false food advertising As a joke, but the success of his announcement led him to create a franchise dish.

Influencers have shown their high importance today to carry out marketing and advertising campaigns on their social networks, which abound in the number of followers and are shown to be effective in promoting a product, service and effectively positioning the brands they choose. for collaborating with them, whether they are nano influencers, micro influencers, macro influencers or mega influencers (depending on their goals and investments).

This strategy of influencer marketing is increasingly used by agencies and professionals in this field, since according to the Influencer Marketing Hub report (The State of Influencer Marketing 2021: Benchmark Report), 90 percent of those surveyed who develop professionally in marketing think that these strategies are “an effective form of marketing.”

Similarly, the credibility and relevance of these advertising strategies raises the image of influencers, having as a result that their followers manage to promote any product, service or even belief that they choose to publish on their networks, so they must be particularly careful in the content they publish, since it can generate not so expected reactions.

The tall impact influencers can have on their followers It has been evidenced by the American Kyle Sheele, who has more than 3 million followers on TikTok, since he promoted a dish with his image by placing his own cardboard figure at a gas station, with alleged false advertising.

This is because the Kum & Go chain would have asked the influencer for his “craziest” idea and he replied that he would like to create an “influencer’s plate”, so he created an ad where he is seen holding a guitar in the form of a pizza under the name “Kyle Sheele Meal.” After this, he put in one of the Kum & Go stores, in addition to making it public on his TikTok account, showing a success perhaps not so expected, since his followers came to the establishment to buy said dish, in addition to taking pictures with the advertising.

@kylescheeleSome friends try to get you into an MLM, I try to get you into an RHC (reverse heist crew) #heist #cardboardcutout♬ original sound – kylescheele
@kylescheeleReply to @kumandgo SCHEELE MEAL UPDATE: kumming soon ????♬ original sound – kylescheele

After the influencer showed that it was an alleged false advertisement, his followers asked him to bring this dish to reality. Mag. mentions that this dish has already been officially released, since the influencer and the chain Kum & Go announced the official launch of the “Scheele Meale“, A pizza sandwich and a can of Red Bull. Supposedly this dish costs 5 dollars and will contribute against child hunger.

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The influencer marketing strategies They are well received for the high impact that these Internet characters have on the minds of their followers, as well as other users who do not necessarily follow these personalities directly, but their high popularity achieves through a chain effect that their strategies achieve a wide reach . The image of influencers manages to generate good reactions, especially in social networks, so some workers choose to use their image, even if their permission and showing effective strategies

Previously, an Uber Eats distributor used the name of a recognized Spanish influencer to make his deliveries, achieving thousands of reactions on social networks and even that the same influencer reacted and gave him his authorization to continue with said service.

The Image of influencers can lead to positive results, if these are carried out efficiently, so particular care must be taken when carrying out strategies of this type.

The integration of social commerce features on platforms like TikTok and Instagram has further streamlined MLM operations, enabling direct purchases and fostering seamless interactions between influencers and their audiences.

Title:

Content: Shopping on Social: Insights from Dee Agarwal on e-Comm in Social Media

Dee Agarwal explores the booming trend of social commerce, its benefits for businesses, and key strategies like authenticity and community building, emphasizing it as a transformative force for growth and engagement.

The days of solely browsing aisles or mindlessly scrolling product pages are fading. Today's consumers crave an immersive, engaging shopping experience, and social media is spearheading this revolution. What were once platforms for connecting with friends are rapidly transforming into powerful e-commerce hubs, blurring the lines between entertainment and shopping sprees.

Dee Agarwal, an experienced C-suite executive, delves into the thriving world of social commerce, exploring its key trends, benefits, and practical tips for businesses looking to tap into this burgeoning market.

Why Social Shopping is Booming

Dee Agarwal notes that several factors are driving the surge in social commerce:

  • Discovery & Inspiration: Platforms like Instagram and TikTok act as treasure troves for discovering new products. Influencers, user-generated content (UGC), and targeted ads showcase products in an authentic, relatable way, igniting instant desire.
  • Seamless Experience: “Gone are the days of navigating clunky websites,” says Dee Agarwal. “Social shopping offers a frictionless buying journey, allowing users to purchase directly within the app without leaving their familiar social space.”
  • Community & Trust: Social media fosters a sense of community and trust. Recommendations from friends and influencers hold more weight than traditional advertising, influencing purchase decisions.
  • Mobile-First: Dee Agarwal notes that “with over 90% of social media accessed via mobile, social commerce aligns perfectly with modern, on-the-go lifestyles.”

Examples of Social Commerce in Action

The growth of commerce on social media isn’t relegated to one platform. A variety of social media channels, both new and legacy, are getting in the game with features that drive sales -- creating new opportunities for entrepreneurs and marketers. Dee Agarwal explores how different platforms are making their mark:

  • Instagram: Shoppable posts, Instagram Stories with product links, and influencer marketing reign supreme. Fashion and beauty brands like Fenty Beauty leverage these features to showcase products and drive sales.
  • TikTok: The platform now offers TikTok Shop, a new feature allowing brands to set up dedicated storefronts within the app. This provides a seamless shopping experience for users, who can discover products directly within the video feed and purchase them with just a few clicks. “Short-form, engaging videos with in-app purchase options are exploding,” says Dee Agarwal. “Brands like Gymshark partner with micro-influencers to create dynamic product demonstrations, leading to viral trends and instant purchases.
  • Facebook & Pinterest: Both platforms offer robust shop features with product catalogs and targeted advertising, which is ideal for established brands with diverse product lines.
  • Live Streaming: Platforms like YouTube and Twitch are embracing live shopping events, where influencers showcase products in real time and viewers can purchase directly during the stream.

Benefits for Businesses

Social media allows businesses to bring their products directly to customers in a new way that meets them where they already are. Dee Agarwal shares why companies should embrace social commerce:

  • Reach New Audiences: Dee Agarwal notes that “with billions of active users across diverse demographics, social media opens doors to untapped markets.”
  • Boost Brand Awareness: Engaging content builds brand recognition and loyalty, increasing organic reach and sales.
  • Enhanced Customer Engagement: Direct interaction with customers fosters trust and allows for real-time feedback, improving brand perception.
  • Targeted Advertising: “Leverage platform algorithms to reach highly specific audiences with personalized ads, maximizing marketing ROI,” says Dee Agarwal.
  • Data-Driven Decisions: Social media analytics provide valuable insights into customer preferences and behavior, informing product development and sales and marketing strategies.

Tips for Success in Social Commerce

While social media offers immense sales opportunities for savvy businesses, Dee Agarwal recommends keeping the following tips in mind when developing social media e-commerce strategies: :

  • Authenticity is Key: Focus on creating genuine content that resonates with your target audience,” says Dee Agarwal. “User-generated content and influencer partnerships can be powerful tools.”
  • Embrace Visual Storytelling: High-quality images, videos, and captivating narratives grab attention and drive engagement.
  • Utilize Shoppable Features: Integrate shoppable features offered by various platforms to make the buying process smooth and seamless.
  • Prioritize Mobile Optimization: Ensure your content and shopping experience are optimized for mobile devices, where most social media activity occurs.
  • Community Building: Foster a sense of community through interactive content, contests, and live sessions to build lasting relationships with customers and showcase product offerings.
  • Experiment & Analyze: Dee Agarwal says, “Stay up-to-date with trends, experiment with different formats, and track your results to continuously refine your social commerce strategy.”

Social commerce is no longer a trend; it's a growing force reshaping the e-commerce landscape. By understanding its potential, adapting your strategy, and embracing the unique features of each platform, businesses can unlock massive opportunities to reach new audiences, build brand loyalty, and drive significant revenue growth.

Contact Info:
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Email: Send Email
Organization: Cambridge Global
Phone: 404-955-7133
Website: https://deeagarwal.com/

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Recent regulatory changes have significantly impacted MLM companies, with some countries proposing stricter controls, such as Taiwan's legislative amendment to shift from a reporting system to a licensing system for MLM businesses, aiming to increase regulatory density and prevent fraudulent practices.

Title:

Content: Free Speech "Marketing industry from the reporting system to the licensing system violates the principle of proportion
Fan Wenqing
Several legislators of the Legislative Yuan proposed to amend the reporting system used in Articles 6 and 7 of the current Multilevel Marketing Management Law to a licensing system.
In other words, under the provisions of the current law, the marketing industry shall report to the competent authority the basic information of the multi-level marketing business and the business establishment, the marketing system and the conditions for the participation of the distributors, the content of the contract of participation, the items of goods or services, prices and sources.
However, the amendment seeks to amend the above two provisions and change the above items to a permit system.
Several legislators of the Legislative Yuan proposed to amend the reporting system used in Articles 6 and 7 of the current Multilevel Marketing Management Law to a licensing system.
(Photo of this newspaper)
Changing from a reporting system to a licensing system is to increase the regulatory density of the marketing industry.
Maintaining market competition order is the task of the state, the state itself to a certain degree of control of the market.
However, if the regulatory density exceeds the nature of the market, the improper high-intensity regulation will be illegal or even unconstitutional because it violates the principle of proportionality.
First of all, the licensing system is before the start of the business of the marketing industry, the prior review whether to comply with the various requirements of the law, which is for the marketing industry to take the prior control measures.
However, Taiwan has adopted a reporting control method for the distribution industry for decades, and there are no major shortcomings.
Of course, there are inevitably a small number of illegal and improper operators in the distribution industry, but this should be mainly through the strengthening of the quality of the distribution management in Article 18 of the Act and other post-event supervision and management means to eliminate a small number of unscrupulous distributors who do not sell goods but illegally attract gold.
This kind of post-event supervision cannot be achieved by means of prior control measures.
Mandatory adoption of a prior authorization system would violate the "suitability principle".
The change from a reporting system to a licensing system is to increase the regulatory density of the marketing industry. However, if the regulatory density exceeds the nature of the market, the improper high-intensity control will be illegal and even unconstitutional due to the violation of the principle of proportion. (Photo: Internet)
Second, the administrative authorities shall control the rights of the people by the means that infringe the least on the people.
The permissions in the revised draft are actually the same as the original reporting.
The original reporting system has been in operation for many years, and the reporting system itself has not caused any drawbacks.
The management of the marketing industry under the reporting system is generally on track, and the number of government administrative investigations and judicial decisions is small.
From this, it can be seen that it is not necessary to amend the permit system to increase the density of control. If the people are unreasonably increased in the density of control, it will cause many troubles to the industry.
For example, there may be delays in business opportunities due to waiting for permission.
In addition, because the regulatory standards were raised to the same licensing system as the financial insurance industry or the eight major industries, in order to meet this high standard of review, the operating costs of marketing operators increased.
However, the distributors are generally cosmetics, health food and other general goods, not only do not specifically strengthen the reason for the control, especially strengthen the control will also make the marketing industry in a more disadvantaged competitive position than the general channel or e-commerce channel, thus harmful to the development of the marketing industry, or even survival.
The draft amendment is not to take the least invasive measures against the marketing industry, but to adopt control measures that are easy to kill the vitality of the marketing industry, contrary to the "principle of necessity".
Third, the regulatory measures adopted by public power acts must be commensurate with the regulatory objectives expected to be achieved. A closer examination of the draft amendments does not reveal the specific objectives to be achieved.
Thus, there is no review of the "narrow proportionality principle".
In retrospect, if you think that the reason for the revision of the law is "multi-level marketing has done a very transparent large company, but there are also many cases of being injured by unscrupulous operators", then the correct direction of the amendment should be to require the competent authority to strengthen the inspection and punishment of such unscrupulous operators, rather than dragging down the legitimate operators in the same direction, and destroying the efficiency and flexibility of the legitimate operators.
"When pouring the bath water, do not pour out the baby together." If you think that the number of families joining the association in the marketing industry is limited and does not conform to the principle of "return to the association", then the focus of the amendment should be on counseling or even compulsory membership of the association.
This has nothing to do with licensing.
In summary, the distribution industry from the reporting system amendment to the licensing system, in the principle of proportionality review, in line with article 23 of the Constitution and article 7 of the Administrative Procedure Law, the draft amendment has a major unconstitutional suspicion.
It is expected that the Legislative Council can carefully consider the business reality of the marketing industry, and the basic structure of our country's legal system, which is the blessing of the whole people.
(The author is a full-time associate professor of law at Soochow University, and a Juris Doctor from the University of Göttingen, Germany)
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Legal actions have also targeted MLM companies for unethical practices, as seen in Taiwan where distributors of Dongsen Global were fined for misleading recruitment activities, highlighting the enforcement of the Multi-level Marketing Management Law to curb deceptive methods and protect consumer rights.

Title:

Content: Alert
The desire of men to want a sports car is related to the size of the GG, a British research team has confirmed.
What does the distributor say about the smallpox?
East Mori Dragon and East Mori Global Punished by Fair Society
The Fairness Association said that the “Dragon Team ”, a distributor of Dongsen Global, engaged in recruitment activities with improper words. However, in addition to the fines imposed by Dongsen Global, several distributors of the Dragon Team continued to solicit improper words. The company is liable for violating the provisions of Article 15, Paragraph 2 of the Multilevel Marketing Management Law and is fined 800,000 yuan.
Fairness will also directly punish Fang Xuan International Enterprise Co., Ltd. and Fang Xuan Industrial Co., Ltd., the leader of the Dragon Team, a global distributor of Dongsen.
The reason is that on March 11 and May 21, 110, it held a briefing to buy the "online shop package" supplemented by "join" and other terms, and said that the purchase of the "online shop package" can receive a gift box of the same value of goods, so that people mistakenly recognized to join Toshen and received a gift, and different from the distributors reported by Toshen Global Company to the fair. Violating Paragraph 2 of Article 10 of the Multilevel Distribution Management Law, Fangxuan International Enterprise was fined 400,000 yuan and Fangxuan Industrial Co., Ltd. 100,000 yuan respectively.
In order to prevent distributors from using improper methods to promote or sell goods or services to harm the rights and interests of offline distributors, the Multi-level Marketing Management Law Office regulates the responsibility of distributors.
Fang Xuan International Business and Fang Xuan Industrial Co., Ltd., a global distributor of Fang Xuan International Business and Fang Xuan Industrial Co., Ltd., announced that it had not been informed at the beginning of the recruitment process, but it was not until September 24, 110 that Fang Xuan International Business and Fang Xuan Industrial Co., Ltd. had been warned in accordance with the Internet policy on July 19, 110. A fine of $10,000 was imposed.
In the 110 years since then, many distributors under the Dragon Team have continued to solicit improper words, which shows that the original handling was unable to stop the breach of contract by the distributors.
The Fair will consider that because its distributors have not improved, it shows that the company did not comply with the correct handling of the violations of the distributors, and therefore found that the company violated Article 15 (2) of the Multilevel Marketing Management Act.
In addition, the fair will also target 11 Dongsen global company distributors such as Qianhe Co., Ltd., Yinxin International Co., Ltd., Huifeng Enterprise, Xu Jun, etc., claiming that "return", "preservation", "equivalent gifts", "non-direct sales", "franchise", and did not indicate multi-level marketing.
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The promise of financial independence and entrepreneurial success is a key factor in attracting individuals to MLMs, as these companies often market the opportunity to escape traditional employment and achieve unlimited income potential through self-directed efforts and recruitment-based commissions.

MLMs use psychological tactics such as promoting self-empowerment and financial freedom to attract and retain members, often framing their business model as a path to personal independence and wealth.

Title:

Content: [Street Industry Watch] In the Year of the Pandemic, many people joined the "marketing" to pull down the line, but nearly half of the revenue was used to pay "multi-level" commissions.
Photo Credit: Central News Agency
What we want you to know is
At the same time, the body product channel and product spokesperson can further bring the "offline", which is the start of expanding the business and crossing the threshold of receiving commissions.
But this threshold seems easy, but not everyone can climb, because whether it is old or new distributors, most of them only contribute to the commission of the supporting role......
In the summer of 2020, it is supposed to be the graduation season of college students and the time when social newcomers are pouring out of the cage, but I saw a youthful face at a few lively junctions in the business district of Banqiao, and started the work of “listing people ” for housing construction.
Single-handed advertising placard, carrying a backpack leaning against the road light pole, the other holding a thin, seemingly split reference book, on the hot sun, earning the card holder's hard hourly salary, and paving the way for future job hunting.
When a PT (Part Time, Part-time, Part-time, Part-time) job that was originally labeled as a middle-aged, second-degree employment face, there were many young faces, can not help but make people shiver in the heat of the day!
The virus has hit households and disrupted the job market, affecting youth employment.
We have to admit that the epidemic has disrupted the pace of new people entering society and seeking jobs. Although it is at a time when the virus has not really invaded the door, the job market has been chaotic.
According to the Ministry of Labor ’ s “Youth Employment Status ” report, there are about 280,000 college graduates in 2020, a decrease of 5.4% compared to 2019. This reflects not only the decrease in the number of children and the decrease in the number of college students, but also the explosion of life extension in 2020. If further deduction is further deducted, the number of people who can work (including military service) is a low of nearly 5 years (223,000), a decrease of 12% compared to 2019. And...
As of the end of January 2021, only 68.3%, about 152,000 people, of the post-secondary students who graduated in 2020 and are working people, joined the ranks of labor / agriculture / public insurance, which is not only a low point in the past five years, but also a decrease of 24% compared with the previous year.
In other words, there are many college graduates, after more than half a year of job search, still have not successfully entered the workplace; the pressure of job search and living economy, so that they have to make very choices in this extraordinary period.
The job market is cold, and marketing continues to expand its organization, becoming a potential employment option for new people in society.
In 2021, the virus officially "invaded the door" in May, before graduating from college in the new year.
The alert of the epidemic, so that this year's job market has a cold wind, but also the unemployment rate in July this year (4.53%), blowing up the same period of high in the past decade, recently graduated social fresh people, inevitably have to face the fear of graduation, namely unemployment.
However, there is a saying in the workplace: Despite the economic downturn, business jobs such as insurance and distribution are always recruiting.
If this is not true, we can try to turn off or turn on the query function of the above industries on the job search platform to achieve a full personal experience.
However, in 2020, the number of people registered for the personal insurance business survey (85,000) increased by 5% compared to the previous year, and the number of new entrants to the marketing business is also a million people.
This is the type of occupation that people need to earn life, some people are joining is no retreat, but some people are carrying a dream forward, but the dream is very rich, the reality is very bones, when we dream in the winter, do not forget to pragmatically understand the mode of operation of the industry.
Today, let ’ s talk about selling!
Most people's stereotypes of marketing remain in the "brainwashing" of marketing conferences, constantly inculcating that this is a "personal business," getting rid of being hired as social animals, and directly attacking the freedom of wealth, and in addition, trying to give individuals the self-esteem and ability to think independently, suggesting that "thinking for themselves, not having to discuss with others."
Perhaps, some people have experienced this process of marketing to pull members off the line, some people join, some people feel that it is a "cult", but making money, quality of life, and self-empowerment (Self-empowerment) these material and psychological skills, is indeed for most people have a certain hypnotic effect.
However, most of our understanding of marketing is just the “recruitment ” discourse, and we do not have a deep understanding of how it works.
Perhaps, when we understand the logic of the industry, we can better understand why the so-called brainwashing conference is a starting point for marketing recruitment.
Multi-level marketing requires multiple distributors as sales and marketing channels
According to the Fair Trade Commission ’ s “Multi-level Marketing Business Development Survey ”, nearly 3.5 million distributors (each“ individual ” who joined members or purchased goods is an independent distributor) of 314 marketing entities (such as Anli, Ruxin, etc.) in 2020 generated a turnover of 98 billion yuan, a slight increase of 5% over the previous year. In contrast to the population over 20 years of age (more than 19.4 million people), about one in six people join the ranks of distributors.
Since all distributors replace all types of retail channels, they not only have the function of the channel, but also have the function of marketing, that is, word-of-mouth marketing, so whether they emphasize themselves as retail (sales) orientation, product recommendation (head-pulling) orientation, or emphasis on membership, they are ultimately based on "people" and "organizational hierarchy".
And the product channel and marketing costs saved by the marketing business are converted into the commission of the distributor.
Therefore, when we contact distributors and ask them why they are involved in the marketing industry, they will almost unanimously reply, "The product is great!"
Distributors continue to pay for new members by pulling down the line, expanding the organization and expanding the commission
That being said, it ’ s one thing to see how great a product is in the domain of a distributor, and constantly adding new blood is the highest goal for continuous marketing, expanding the organization, and increasing revenue and commission revenue.
Similarly, according to the Fair Trade Association report, the number of new entrants to the market in 2020 is about 1 million, and for the past five years, the number of new entrants has remained at around 1 million each year.
And in 314 marketing businesses, 96% of the joining system is to take "conditional join", of which, the most important is "order goods" (62%), "pay a deposit or membership fee" (59%), so "conditional join" is not only contributing to the marketing business and the top level of the sales (the one who pulls you in), but also contributing to the level of the commission.
In contrast, if someone joins, someone exits. The number of MLM merchants who quit in 2020 is about 450,000, and the number of exits in each of the past five years has been around 400,000 to 500,000.
The main reason for exiting is “non-renewal of contract ” (83%), which means no longer operating, no longer consuming, and the product is no longer considered“ great ”.
However, in this process, there will always be new blood distributors who will contribute to the expansion of the organization and the commission generated after the consumption of the product.
Whether old or new distributors, most are only supporting players who contribute commissions
As has been mentioned, the distributor at the same time with the product channel and product marketing (endorsement) people, their own recognition of the product, use, and purchase, to become a new member of the body and teaching.
Of course, once you can further bring in new members, new distributors, or offline, it is the beginning of expanding your business and crossing the threshold of receiving commissions.
It seems that the threshold is easy, but not everyone can climb it.
According to a survey conducted by the Fair Trade Association, 222 of the 314 marketing businesses (about 70%), and more than 60% of its distributors will make stable orders to the company; however, only 27% of all marketing companies (about 960,000 people) receive commissions, and the average commission per person is 45,000 yuan.
Therefore, most distributors who order goods either maintain their status as distributors by buying products, or sincerely recognize and continue to use the products; and by bringing in new distributors, order sales, and achieve a commission threshold, and can earn a stable salary or even become rich in this industry, not only are rare, but also the successful cases seen in various conferences or education and training survivors. "The Beautiful Misunderstanding We Have".
It doesn ’ t matter if the product is worth the price
In addition to the threshold, this kind of personal marketing and sales channels, to achieve the "multi-level" (that is, constantly expanding the organization down the line) of the business of distribution, not only eat personal interpersonal skills, "multi-level" commission distribution will indirectly increase product prices.
According to a survey conducted by the fair society, the import cost of the pyramid scheme business accounts for only 28% of the turnover, but the commission accounts for 44% of the turnover, in other words, the real cost of selling a commodity of $100 is only $28, $44 is used as the commission of the pyramid scheme business, and the remaining $28 is the administrative expenses and profits of the pyramid scheme. Whether the essence of a product is value for money is one thing, the marketing business will compress its own profits, expand its commission expenditure, and recruit and expand the organization with a strategy of large is beautiful, so that we can find: there are so many people who have joined the ranks of marketing!
Marketing has always been a very special industry, in which a small number of people have been able to earn their fair share of commissions, and become the mainstay of business operations, but the vast majority of people are only a supporting part of this multi-level marketing structure, and by paying membership fees, buying and using products, they become a part of the source of commissions.
Back to the intention of writing this article, no matter how difficult the job search for new people in society during the epidemic, I hope that by understanding the operation mode of an industry, I can assess whether to use the marketing industry as the first job to enter the society.
Through the Fair Commission report, we have gained a profound understanding, no matter how many of these people successfully earn high commissions and create successful careers, this data is hinting at us: if this industry is the main occupation, not only requires a certain degree of interpersonal relationships and skills, there may be a period of social novices can not understand life or career experience.
Source: Ministry of Labor “Youth Employment Status ”, Fair Trading Commission“ Multi-level Marketing Business Development Survey ”
Extended reading
Editorial responsibility: Ding Zhaojiu
Editor ： Weng Shihang
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They employ strategies like 'brainwashing conferences' to instill a sense of belonging and success, emphasizing the importance of recruiting new members to expand the organization and increase commissions, which creates a cycle of dependency and commitment among distributors.

MLMs also leverage interpersonal relationships and social pressures, encouraging members to recruit friends and family, which not only expands their network but also ties members emotionally to the business, making it harder for them to leave despite financial losses or unmet expectations.

Over the past decade, public perception of MLMs has shifted significantly, with increasing skepticism due to their association with pyramid schemes and deceptive practices, as highlighted by the decline of iconic direct selling companies like Avon and Tupperware.

The rise of social media and digital platforms has amplified criticism of MLMs, exposing high churn rates, low income potential for participants, and the reliance on recruitment over retail sales, which has led to growing awareness of the inherent risks and inequities in the MLM business model.

Economic factors, such as the Great Recession and the COVID-19 pandemic, initially boosted MLM recruitment by targeting individuals seeking flexible income opportunities, but the subsequent exposure of financial losses and unsustainable practices has contributed to a decline in trust and popularity among the general public.