The flip side of multi-level marketing: A diagnosis of factors leading to the mass uptake of unregulated pyramid schemes in South Africa

Msosa, Steven Kayambazinthu

doi:10.21511/im.18(1).2022.12

Cited by 3 publications

(2 citation statements)

References 13 publications

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“…The presentation strategies incorporate the use of word of mouth and testimonials of success stories which have proven to be quite crucial in delivering the message successfully. Other members of the MLM company are encouraged to present their own life stories which bear testimony of tangible evidence of their success that can be achieved in MLM (Msosa 2022). To enhance their efforts members also incorporate other elements of the promotion mix such as advertising to augment the purchase decision process (Fill 2009).…”

Section: Recruitment Strategiesmentioning

confidence: 99%

Factors of Multi-Level Marketing Success Strategies Which Motivate Participants

Makore,

Moyo,

Madziba

2023

SABR

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Background: Remarkable successes have been registered throughout the world by individuals engaged in multi-level marketing (MLM), also called network marketing, which refers to individuals selling products to the public, often by word of mouth and direct sales. Purpose: The purpose of this study was to examine the determinants of MLM success strategies in the Zimbabwean economy and to identify factors that influence multi-level marketers in Zimbabwe. Methodology: A quantitative approach using a survey questionnaire was used to collect data which was then analysed using SPSS. A sample of 146 usable responses drawn from Harare and Masvingo was used in the study. Statistical techniques, which included exploratory factor analysis (EFA) and the correlation matrix, were carried out to deduce the strategies associated with achieving success as a distributor for a MML company. Findings: The study findings suggest that success in MLM is dependent primarily on the following factors: incentives for motivation; team-building methods; and support strategies. It is from these factors that the study further sought to identify the individual variables or combinations thereof that could be endorsed as predominantly influencing the success of MLM in Zimbabwe. Value: Empirical evidence is provided on the latent constructs or factors that influence individuals to join MLM companies. As part of the practical contribution, MLM practitioners should focus on the compensation plan, trust, and commitment as key factors in motivating individuals to participate in MLM.

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Section: Recruitment Strategiesmentioning

confidence: 99%

Factors of Multi-Level Marketing Success Strategies Which Motivate Participants

Makore,

Moyo,

Madziba

2023

SABR

View full text Add to dashboard Cite

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“…What is special about pyramid schemes is that they are enabled by an active participation of victims. Although many participants in pyramid schemes lose cash and/or suffer other harms, the vast majority of participants also facilitate illegal pyramids by actively recruiting new victims in an attempt to turn even more people into active recruiters (Msosa, 2022). Some participants know what they are doing might be a pyramid scheme, but think they are in a position to recruit a large number of other victims to join the scheme (Hidajat, 2018).…”

Section: Introductionmentioning

confidence: 99%

Why do people join pyramid schemes?

Hock

Button²

2022

JFC

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Purpose Pyramid schemes create an unusual situation, where the victims might be effectively turned into offenders, as their role is to recruit more victims to the pyramid scheme. This paper aims to investigate the prevalence of pyramid schemes, their modern forms and why people join them. Design/methodology/approach This paper has developed from a structured literature review carried out as part of a wider study into policing pyramid schemes. Findings This paper identifies a range of reasons why people join pyramid schemes. Some of these reasons are “participant dominant”, including the vision of high reward for little work and the attraction to a better lifestyle. Other reasons are “organiser dominant”, including the exploitation of specific groups and high-pressure sales. These findings suggest significant differences in levels of culpability of pyramid schemes victims and perpetrators. This complexity is accompanied by conceptual, regulatory and institutional challenges. Originality/value Despite the profound and pervasive impact of pyramid schemes, researchers know very little about why some people participate in pyramid schemes. Limited research is largely American and specific to illegal multi-level marketing schemes. To the best of the authors’ knowledge, this paper is the first to provide an overview of a mix of strategies of participants of pyramid schemes to recruit new victims and reasons why people are joining pyramid schemes.

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Non-Ideal Victims or Offenders? The Curious Case of Pyramid Scheme Participants

Hock

Button

2023

Victims & Offenders

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The flip side of multi-level marketing: A diagnosis of factors leading to the mass uptake of unregulated pyramid schemes in South Africa

Cited by 3 publications

References 13 publications

Factors of Multi-Level Marketing Success Strategies Which Motivate Participants

Factors of Multi-Level Marketing Success Strategies Which Motivate Participants

Why do people join pyramid schemes?

Non-Ideal Victims or Offenders? The Curious Case of Pyramid Scheme Participants

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