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    "The Research, Risks and Rewards": Multilevel Marketing

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    Lindy Lou Yamilo
    Nearly 8% of American adults have participated in multilevel marketing (MLM). AARP Foundation conducted research on MLM participation and found that while 91% joined to make money, 47% reported losing money. On average, participants spent 13.3 hours per week working but only 26% reported making a profit, with most making less than $5,000. Two-thirds said they would not join the same MLM again due to the disconnect between what MLMs promise and what people actually make.

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    "The Research, Risks and Rewards": Multilevel Marketing

    Uploaded by

    Lindy Lou Yamilo
    90 views8 pages
    Nearly 8% of American adults have participated in multilevel marketing (MLM). AARP Foundation conducted research on MLM participation and found that while 91% joined to make money, 47% reported losing money. On average, participants spent 13.3 hours per week working but only 26% reported making a profit, with most making less than $5,000. Two-thirds said they would not join the same MLM again due to the disconnect between what MLMs promise and what people actually make.

    Original Description:

    Networking

    Original Title

    A a Rpf Research Executive Summary Final 101018

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    Nearly 8% of American adults have participated in multilevel marketing (MLM). AARP Foundation conducted research on MLM participation and found that while 91% joined to make money, 47% reported losing money. On average, participants spent 13.3 hours per week working but only 26% reported making a profit, with most making less than $5,000. Two-thirds said they would not join the same MLM again due to the disconnect between what MLMs promise and what people actually make.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    90 views8 pages

    "The Research, Risks and Rewards": Multilevel Marketing

    Uploaded by

    Lindy Lou Yamilo
    Nearly 8% of American adults have participated in multilevel marketing (MLM). AARP Foundation conducted research on MLM participation and found that while 91% joined to make money, 47% reported losing money. On average, participants spent 13.3 hours per week working but only 26% reported making a profit, with most making less than $5,000. Two-thirds said they would not join the same MLM again due to the disconnect between what MLMs promise and what people actually make.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8

    Multilevel Marketing:

    “The Research, Risks


    and Rewards”
    An Executive Summary
    Presented by AARP Foundation
    Background
    At AARP Foundation (AARPF), our mission is to serve vulnerable older adults by creating and
    advancing effective solutions that help them secure the essentials. Every day, we work
    to tackle senior poverty by sparking bold, innovative solutions that help vulnerable older
    adults build economic opportunity and social connectedness.

    After the Great Recession, we noticed a number of our constituents joining multilevel
    (MLM) companies in an effort to generate additional, or primary, income. More often than not,
    most did not achieve what these companies had promoted as income or benefits. Following our
    mission, we decided to conduct a study about multilevel marketing to gain a better understanding
    about the mindsets, experiences and expectations of Americans that participate in multilevel
    programs. The information would better inform us on how to educate consumers about the
    potential advantages and pitfalls of MLM participation.

    What we learned is nearly eight percent (7.7%) of American adults and older have
    participated in at least one MLM during their lifetime. A majority (91%) joined to make
    money; however, nearly half (47%) reported they lost money. Our findings indicate
    there’s a disconnect between what MLM companies promise and what people actually
    make. The following executive summary shares key findings from the report. Visit
    aarp.org/MLMaware for tools and tips to identify whether multilevel marketing is right for you.

    Research Methodology
    AARPF commissioned GfK to conduct qualitative and quantitative research to understand
    the demographics, psychographics and behaviors of adult Americans who have
    participated in at least one multilevel marketing organization during their lifetime.
    The study used both qualitative and quantitative methods. Four focus groups
    were conducted, including men and women who worked as MLM direct
    sellers either presently or within the past 7 years. Analysis of focus groups
    transcripts informed the development of an online survey that was
    administered to more than 1000 participants. The survey included
    1,016 respondents, encompassing 601 Americans who were direct
    sellers for an MLM organization sometime in the past and 415
    who never participated in an MLM before. Here at AARPF,
    we want Americans to have a better understanding
    of all aspects of MLM. Before joining any MLM’s we
    want you to do your research, find your why and
    get comfortable selling products.
    60 %
    Nearly

    21Americans
    million are women
    72%
    are married or living with
    a partner

    55%
    worked as a paid
    employee while participating
    76 %
    had no experience in
    commission-based sales
    in MLMs
    Why People Join
    Multilevel Marketing
    Companies?

    63 %
    joined to make money
    by selling the product
    or service to others

    23 %
    wanted to make money by
    recruiting others to sell
    Is Multilevel
    Marketing Profitable?

    47%
    lost
    money

    27 %
    made no money

    26
    The remaining However, among

    %
    those who made a
    profit, more than half

    On average, reported that they made a profit made less than

    approximately Less than $5,000

    7 % 1 % un
    d

    3%
    Aro

    of MLM participants reported profits of

    100k
    made over

    10,000
    made between

    or more 10-24.9k
    Why People Leave
    Multilevel Marketing
    Companies?

    13 3
    13.3
    During an average week, participants reported
    that they work an average of 13.3 hours
    Would MLMers
    Do It Again?

    65
    Around two-thirds

    %
    of participants said they would
    not join the same MLM again

    27
    More than a quarter

    %
    stated the MLM compensation plan was
    somewhat or very unfair
    www.aarp.org/MLMaware

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