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Multi-Level Marketing (MLM) is very popular in Malaysia, used not only in promoting consumer goods but also in promoting financial instruments such as Islamic unit trust funds and Takaful products. Statistics show that in year 2003 the MLM industry in Malaysia has recorded sales of more than RM 4 billion and more than 3 million people are involved in MLM transactions.

MLM is no way an invention of the 21st Century. It changes, alters and transforms itself continuously. Once upon a time there was only the direct sale, the original form of trade in which the farmer sold his milk directly to the villagers or even more before that time when meat was traded for a club. For various civilizations, such as in ancient China, it has been proven that rambling tradesmen maintained trade relations and offered their goods to the buyer at his home. The reason for the migration of the tradesmen laid predominantly in the overproduction of providers, in addition to that a sparse population in which they were located.
Until the industrial revolution in 1840 tradesman replaced and took over the function of the commercial retail or supplemented these and served as a communications medium. But more and more people moved to the cities and the industrialization and division of labor was unstoppable. When there was a better infrastructure and new ways of communication opened up, the itinerant trade was increasingly repressed, by such things as department stores and retailers.

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  • June 13, 2021 1:49 pm local time

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