Direct Selling – Even Grandpa’s Making A Sale

MLM, or Multi-level marketing, was first legalized in Singapore in 2000, when it was distinguished from pyramid selling. The idea did not take off when it was first created in the 1960s because the Multi-level Marketing was equated to pyramid selling. However, it was soon recognized to be different from the pyramid selling as people earned commission through product sales, instead of directly through recruitment.   

MLM earnings

MLM salesmen make money not just from their own sales but also from salespeople they have recruited, hence the term multi-level. Depending on their level, such salesmen may earn 1 to 20% commission. The Direct Selling Association of Singapore (DSAS) represents the interests of legitimate direct selling companies operating in Singapore  . More and more of such companies are operating in Singapore because of the good business environment, including sturdy government support. 

These networks tend to expand rapidly because sellers are rewarded for bringing in other sellers. The main items sold are cosmetics, personal care products and nutritional supplements, all of which can be personally endorsed by the seller. Smaller players may sell quirkier products such as panties, corsets, kitchenware and even storage spaces for urns.  

MLM companies headed by talented directors can boast 5 or 6 figure revenues annually. International corporate dynasties built up through direct selling alone, such as skincare company, Nu Skin Enterprises, has an annual revenue of nearly US$900million (S$1.65billion). And they say MLM is a cost-saving way of selling a product, thus giving people who are young or without academic qualifications a chance to build up their own business.