Multi-level Marketing-Pyramid Scheme

Multi-level Marketing-Pyramid Scheme

Pyramid schemes have become common over the past decade leading to massive losses for unsuspecting victims. In 2014, one of my friends introduced me to Vemma, a company that was looking for people to market their weight loss and energy drinks. Marketers were promised rewards for recruiting new members and additional rewards for selling the company’s products. I did not have a job at that time, so I decided to join the company’s marketing workforce and start referring new members because before, I could get customers who could purchase the company’s products. I thought I could leverage my social network to increase my referrals because I would earn more if I had more referrals. The company had promised that affiliate marketers could earn up to $30,000 annually through the referral program. Therefore, I was determined to stay committed to the program to grow my income as an affiliate marker. Do you need help with your assignment ? Contact us at eminencepapers.com.

Price, Product, Placement and Promotion

Price

The price of the product introduced to me was $87.00. New members were also required to pay $600 as a starter pack for being an affiliate marketer and purchase monthly products worth $150 to gain bonus eligibility. Marketers were encouraged to purchase monthly products instead of only relying on the referral program to earn more money.

The Type of “Product”

The type of products that we sold as affiliate marketers were Vemma energy and weight loss drinks. We purchased the product in bulk from the company and then sold it to customers at a profit to gain rewards and benefits. We sold the energy drinks to athletes and people who work out at the gym. Therefore, most marketers would visit local gyms and sports tournaments and approach the target customers individually. We also sold weight loss drinks to people on weight loss programs. Most marketers use social media platforms to market weight loss drinks.

Placement

Although the company had promised us that the products would be in high demand because of their health benefits, there was a small customer base because many people doubted the products’ quality and pricing. Therefore, the company focused on making money through the recruitment program because every new member would pay $600.The company also targeted college students to work as affiliate marketers. Therefore, most affiliate marketers were selling the products to fellow college students, and most could not afford them, and others were not interested in the product. Some people on social media platforms had also started raising concerns about the company, claiming it was running a pyramid scheme, thus affecting its credibility and contributing to reduced sales.

Promotion

The affiliate program lured me in because the company guaranteed we would earn for referring other affiliate marketers as long as they paid the $600 starter pack. The company had also promised us great rewards, including money for tuition, six-figure salaries, and sports cars for affiliate marketers who met sales targets and company expectations. The people who recruited us to join the affiliate program were also driving luxury cars, and their social media posts suggested that they were living a good life since they were traveling across the world and visiting high-end restaurants. As a young person with no job, seeing such posts and the recruiters’ lifestyle enticed me to join the program and work hard to recruit more affiliate markers as I sought a market for the products I had purchased to meet my monthly sales target. I also attended one of the company’s seminars and listened to the recruiter’s testimonials on how the program has helped them become financially stable.

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Multi-level Marketing-Pyramid Scheme Assignment

Please in a short 1-2 page response identify a potential pyramid scheme (current) or possibly a scam you have either heard of or been involved with.  You can use examples shown in the documentary to support your findings.

Multi-level Marketing-Pyramid Scheme

Please include in your response the 4p’s of Marketing.

Price, Product, Placement, and Promotion.

Example ideas for paper direction:

What was the price of the product introduced to you?  This can include the “price to be involved with the scam”.

(Example: $299.00 to own your own personal perfume store)

What type of “Product” is being sold and to whom?

(Example: Airfare, beauty supplies)

Where does placement come into play with this particular scam?  For example: A product that may or may not work in a certain area.

(Example: Selling snow shovels in San Diego)

Promotion, there had to be a reason you were scammed or the buyer is being scammed.  What type of promotion lured you in?

(Example: Really nice cars being driven by the seminar holders or elaborate claims to fortune).