Why Network Marketing Is Not Thriving in Nigeria

networking marketing in Nigeria

Network Marketing in Nigeria has been a dreaded marketing business because of its mode of operation in the country.

Recently a friend of mine called me and told me he has a very good business proposal for me, knowing fully well that I love doing business especially when it has something to do with marketing. When I got to him, he started with the introduction that I should not be discouraged with the kind of business he wants to introduce to me because he has a premonition I must have done something related in the past, promptly I asked if it was about network marketing, he answered Yes and No, by the time he would narrate the business idea to me it was eventually a Network Marketing business.

What is Network Marketing About?

Network marketing is not a new form of marketing or a way of making money in Nigeria, but taking a cursory look at it, it hasn’t gained so much acceptance as it ought to which is caused by so many factors. but before we go on to evaluate the factors impeding the growth of Network marketing in Nigeria let’s take a look at what network marketing is all about.

According to Wikipedia “Network Marketing which is also referred to as Multi-level Marketing (MLM) is is a marketing strategy in which the sales force is compensated not only for sales they generate but also for the sales of the other salespeople that they recruit”. If you are not a good salesperson you might not find MLM an interesting business venture because it involves direct selling. A network marketing salesperson not only sells a product or services but encourage some other persons to join the company as a distributor or marketer.

Network marketing in Nigeria

Illustration of how MLM works

Network Marketing Involves Selling

If you are not a good orator or you don’t know how to sell, network marketing is not for you. It is a business of selling and i mean direct selling, your ability to convice people to buy a product or join your network as a saleperson is key to experiencing major success. Just like the same way mentoring works, network marketing gives people the privilege to learn the art of selling or doing business from their upline as fondly called (whoever recruits them into the company). It is no doubt that some people have recorded a huge success with network marketing in Nigeria while some have also failed woefully, one impeding factor that has trailed MLM so much is criticism about its efficacy and profitability. this basically has to do with the recruitment of others, initial down payments by new recruits and compensation plan.

Networking: Note that every network marketing has a product they are selling, they encourage you to buy that product, use it, sell to others and also bring in other people who will repeat the same process but will be under your supervision, each of your downline is also required to perform the same function and the process go on and on. Once that is done everyone in the network earns a commission when they complete a recruitment process and also encourage their downline to do the same. The networking process is what most Nigerians don’t want to go through.

Misrepresentation: This is one of the major factors that has adversely affected the growth of multi-level marketing (MLM) in Nigeria. The business is always presented as a “sit at home and earn money” business which is not absolutely correct it requires consistency and hard work. The business has been perceived by most Nigerians as a get-rich-quick-scheme which when the eventually get involve they find out it is not what they think.

Egocentrism: In network marketing people always strive to reach their goal, either gold or platinum at the expense of others, in the real sense most uplines don’t care about their downlines the same way they care about what they want to achieve, this discourage most newly entrants in the business, they felt used and deserted once they have registered and there is no proper follow up.

Non-Payment of Commission: This is one of the common factors that discourages people from joining this business in Nigeria. From studies non-payment of commissions has driven more people away from multi-level marketing.

Some examples of network marketing company in Nigeria include the following GNLD, Organogold, Forever living products, Tiens/Tianshi, Trevo, 4Life among others. Only if this business can be presented and done in the right it way, it might never gain that prominence and acceptance among millions of Nigerians.

Have you heard about this MLM company? they are called 4corners please share your thoughts on them. That is the network marketing business my friend introduced to me. if you want to know more reach out to me.

I would appeeciate your opinion on the subject matter.

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1 comment

  1. James

    Hi,

    I was doing some research and came across this article of yours and I feel its quite informative. My name is James and I would like to discuss this further. Like the market size potential opportunities and may be we may get some thing more out of it.

    You may reach out to me on my e mail