Shedding the stigma

MLM has been legalized, however, it is still difficult to remove its connection with pyramid selling. There have been a few actions taken to better its image though. It has adopted a “Warranty of Market Conduct”, in collaboration with the Consumers Association of Singapore, which gives consumers more protection in the event that a company winds up. In that situation, the association will step in and manage the crisis, for example helping displaced distributors.   

DSAS has also set up a one-stop information center with a full-time staff member to field queries from the public on everything from the reputation of a member company they may be planning to join to direct sales in general. The association has also launched public education forums to explain direct sales and try to address common misperceptions. It is also aiming for better coordination among member companies and to attract more members into the association. 

Capitalizing on opportunities abroad

China is opening up and other virgin markets in Indo-China as well. Home-grown companies have been readying themselves to capitalize on that. Neighbouring countries have already forged ahead. Malaysia and Taiwan have about 12 to 17% of the population engaged in direct selling. Asia accounts for about a third of the global total of sales revenue generated from MLM. With its level of credibility, Singapore could get a larger slice of pie. The nation was picked to host the 2008 World Federation Direct Association Congress, which was attended by more than 1000 delegates from around the world. Other companies are already capitalizing on Singapore’s credibility as a place to do business and using it as a springboard to the region.