MLM and Diversity

In a global economy we need business persons who are ready to accept diversity. This is increasing true as modern communications have brought the world into reach with but a few keystrokes. Most of our larger corporations have already come to terms with this fact. Sadly, the small businesses are lagging behind.

In few sectors is this lag more evident than in multilevel marketing ("MLM" for short). For those who may not know what I mean, examples include such notables as Tupperware, Amway/Quixtar, MaryKay, Shaklee, and a host of others that rely on a system of recruiting others into the program to expand the business.

There is nothing particularly wrong with the MLM business model. It is time honored and tested. Contrary to many misconceptions, when these businesses follow the accepted guidelines, they are entirely legal and legitimate.

However, as the individuals working in these programs seek to expand their businesses, they naturally tend to seek out people like themselves as recruits. Their commonality gives them more of an influence which makes their recruiting easier. This tends to build entire business networks of people without a lot of diversity or inclusivity.

Many who have joined one MLM program or another have found themselves at various meetings where speakers wandered off the topic of the business and onto the subject of religion or politics (not related to business). One business leader after another would espouse this or that religious or political view point. It would eventually seem clear that this MLM business is more welcoming of people of a particular political or religious persuasion than they are embracing of diversity.

This has the effect of making those who do not hold the same political viewpoints or religious persuasions feel uncomfortable. This only increases the likelihood those people with divergent viewpoints will drop out. The attrition rate in MLM's is quite high anyway, so the cause and effect relationship between perceived intolerance and membership cancellations may not be obvious. But, it does exist.

As MLM businesses have moved to the internet, they cast a wider net than in times past. People are no longer just recruiting from within their own circle of contacts. However, many of the hard core MLM'ers have not adjusted. They still get up in their meetings and speak like they are at a political rally or leading their church's prayer meeting.

Very slowly, MLM businesses are moving toward inclusion. I want to be a fly on the wall when the day comes that someone gets up to share his business experience and offers words of praise to Vishnu or expresses gratitude for the loving support of his same gender life partner. It may serve as a wake up call to treat an inclusive MLM business as a business instead of a forum for something else.

That's Wade's two cents.

Wade Houston
November 24, 2007