School of Business
Accounting; Business: Marketing
Multi-level Marketin, Pyramid Scheme, Mary Kay Cosmetics, Amway, Avon
Business | Marketing
Reavis, Adrienne D., "The Misunderstanding of Multi-level Marketing" (2014). Senior Honors Theses. 451.
The structure of multi-level marketing has been mistaken for a pyramid scheme with the introduction of companies, such as Amway, Avon and Mary Kay Cosmetics. The concept of multi-level marketing includes a system of selling a company’s product that involves a pyramid of sales persons. Even though a pyramid structure is present within multi-level marketing, it does not influence the entirety of the business. Because multi-level marketing is a successful manner in which individuals can achieve financial freedom, multi-level marketing companies have migrated to various parts of the world, especially China. However, recent controversies have occurred in China because the government does not want individuals to be independently successful thorough multi-level marketing companies such as Amway, Avon and Mary Kay Cosmetics. The outcome of the comparison between multi-level marketing and pyramid schemes provide proper information to determine the legitimacy of Amway, Avon and Mary Kay Cosmetics.