Perceptions of Multi-level Marketing Companies

Goals

To determine how consumer perceptions of multi-level marketing influence purchase decisions and the factors that influence consumer attitudes to multi-level marketing to assist in developing a business model and go to market strategy.

Early Findings

Consumer Perceptions of Multi-Level Marketing

  • A popular new series on Showtime, "On Becoming a God in Central Florida," has influenced consumer perceptions of multi-level marketing companies. The show depicts multi-level marketing companies as being "scammy pyramid schemes," and there is now a suggestion that the brand is being "ridiculed, discredited, and widely viewed as socially harmful" as a result. The industry itself is publicly reacting to the show urging multi=level marketing companies not to respond amidst fears that a reaction will create a perception that the show is close to the truth.
  • A study of 12 multi-level companies throughout 2019 found that 10 of the companies lost over one-third of their value.
  • Wall Street has become increasingly uncomfortable with these companies due to perceptions of deceptive practices and consumer losses.
  • There is a new and growing perception on "Main Street" that multi-level companies are deceptive, illegal, and come with a range of negative social costs.
  • A further perception is that multi-level companies are not about the product, company culture, customer loyalty, or values. Instead, they are about recruiting competitors and being your own customer.
  • Consumers do not actually seek out the goods of multi-level marketing companies. Many do not see the products as distinctive. Often the products are considered to be overpriced, lack efficacy, and of poor quality.
  • Reddit has an anti-MLM channel, which has grown in popularity recently. The channel contains numerous comments of outrage regarding multi-level marketing companies.
  • YouTube has channels of anti-multi-level marketing videos telling stories of poor experiences with multi-level marketing companies.

Proposed next steps:

You need to be the project owner to select a next step.