Friday, October 3, 2008

6.5 - Here's why Amway can work for you!

My brother... my dear brother... is an idiot. He is a sucker for every multi-level marketing (MLM) business out there. His life is built around the pyramid scheme.

Chapter 5 talks about how the U.S. Forest Service initiates new rangers by having them give public speeches. This process reinforces the new rangers' views and identification to organization.

Seeing (and hearing) my brother go from MLM to MLM, I've seen this reinforcement first hand. He'll get excited about something, but not know much about it. As he first begins talking about it, there is some skepticism in his voice. However, as he talks to more people about the product and program ("you sign up 2 people.... and they sign up 2 people..."), he begins to identify with the company and the company's ideas. Within a month, he's a strong supporter - something that wouldn't be possible if he just read a bunch of material. The constant affirmations that he gives to others serve to convince himself.

As for his constantly trying to get me to sign up or buy something... Caller ID is a wonderful thing... ;)

2 comments:

crives said...

My mom sells Pampered Chef products which is a little like what you are talking about but they call it direct marketing. She sells a certain amount of products and gets a commission, she signs up new consultants and gets a commission for signing them up and a percentage of what they sell. She has been doing this business for almost 5 years now and she absolutely loves it and is so loyal to the company. She has a new identity as a Pampered Chef Director rather than just as her day job as an office manager. This loyalty to the company and drive to do well with it definitely results in rewards for her. She makes a great commission and she gets to go on all expense paid trips each year. I think that these rewards drives her loyalty and identification with the company which she strives to pass down to her consultants which is exactly what these types of companies are in business to do. It is like viral identification.

SS said...

Humans are social animals so it is natural for us to want to fit in and belong. One of the things I learned in Psychology is that you will identify and feel more strongly about an organization if you work hard for it. So the harder you work, the more you cherish it. This would explain why so many groups have initiation phases or even hazing events (like fraternities and sororities). Organizations want you to work hard to get in sothat you remain loyal. Maybe a reason why MLM is so attractive to your brother is because he starts from the bottom and works really hard to advance in ranking.