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July 25, 2004
The Three Sexes of MLM
By QBlog in
There are many different types of MLM businesses but as part of my desire to classify everything I've come up with what I call the "Three Sexes of MLM." It's really just an attempt to highlight some of the differences between various MLMs as well as some similarities. Is it perfect? No. But I think there's something important to learn from looking at MLM in terms of sex (male vs. female, not copulation). What that is exactly, I'm not sure. Maybe you can tell me?
Male
The Male MLMs are pretty easy to spot. They generally sell insurance, financial services, communications technology or something Internet related. Those participating in the Male MLMs are most often "true salesmen," meaning that they have some experience in sales or have "salesman-like" personalities.
Extremely competitive.
Examples: Primerica, PrePaid Legal, etc.
Female
The Female MLMs mainly sell health and beauty or home improvement products. They are characterized by MLM product parties (think Tupperware or Southern Living at Home). They're often marketed to housewives or working women as a "supplemental income" rather than a method to achieve financial independence. For whatever reason, the Female MLMs have avoided many of the problems and abuses that have plagued the other MLMs.
Moderately competitive
Examples: Avon, Tupperware, Southern Living at Home
Male-dominated Co-ed
The last type of MLM is also the most complex and the hardest to spot. On the surface it appears to be equal parts male and female. However, a closer look reveals that it's actually male-dominated and women are relegated to a secondary position, one of insignificance. This type MLM is primarily marketed to families seeking financial security with the potential for much, much more (money). Products in this type MLM are primarily health, beauty and home improvement (cleaning).
Historically, abuses proliferate in this type of MLM but not at the rate seen in the exclusively Male type MLM.
Very Competitive
Examples: Quixtar (Amway)
Comments
I'd say the reason that traditionally "female" MLMs have avoided much of the legal trouble is this:
"Female" MLMs are almost always dominated by product sales, product demonstrations, product samples - "Product, Product, Product" - Thus, the focus is kept on the actual sales of tangible items. In fact I'd argue that even the way "Female" MLMs build their groups is built on product - it seems that many of them wait till they have a customer who has either independently approached friends about the product or has readily accepted the idea of approaching friends (and usually in fact followed through by actually contacting friends) before approaching said customer to join the business opportunity. In fact many of the "party plans" do offer incentives to customers simply to get other customers involved, without the customer receiving the incentive being required or even suggested to sign up as a representative, necessarily.
"Male" MLMs on the other hand (and I include Quixtar in this, at least as it is done by the AQMOs) generally focus on "how much money you can/will make" and/or "financial freedom". The business opportunity is sold at all costs and the product usually exists only as a crutch to make the opportunity legal. I would argue that the product also serves a secondary purpose here: It helps the AQMO or other such similar system to achieve psychological dominance over its members, because it provides an easily quantified way to tell if someone is "plugged in" or "serious", because if they are, they will, of course, be using at least all the core products, and in fact, if they are really a "go getter" will switch any and every item in their life to something offered through the opportunity. I think that has to be one of the only reasons (besides this new rule BS) that Q offers such a large range of items through Store for More & Partner Stores. IMO it's really not targeted at the end consumer, it's targeted at the newbie IBO who is psychologically pressured to buy everything from "his own business' which is of course also the business of his/her upline. I mean, didn't Q essentially admit that years ago when (Amway at that time) instituted PBY pricing code printed in all catalogs? If it was truly a "retail" business, I'd say that they should at least make available a catalog (even just for core line perhaps) with only retail prices. I'd venture a guess that most retailing done is done at IBO cost or very slightly above it.
Hmm... Interesting. I think I've thought these things before but never actually put them together.
News Flash: Now recruiting women of all types for my MLM!
:P
Posted by: Caleb | July 25, 2004 11:45 PM