Multi Level Marketing Business Strengthens Leadership

and Human Resources Welfare

(Case Study of Millionaire Club Indonesia)

Dr. ILYAS INDRA

Abstract

In the hope of reducing unemployment and poverty, a promising business

system that lead to financial success has emerged. With tiered marketing system that able
to encourage a person's ability in marketing field, underlies entrepreneurial methods
called Multi Level Marketing (MLM). MLM business is also believed to be able to grow
the entrepreneurship spirit to students indirectly. MCI is a business concept to build a
better life starting from the economy, community, health, and lifestyle. MCI also provides
privilege services to all its members by delivering exclusive products. Being a business
partner with MCI is the perfect solution for a better life.
MLM is a means of training the leadership and mentality of a winner, because
these entrepreneurs will experience various rejections and challenges that will build
themselves to be tough entrepreneurs. One of the biggest values of an MLM business is
the opportunity to get leadership training. Unfortunately, there are still many people who
doesn’t have a good understanding of MLM, which if this system is implemented
properly, it can improve the economic welfare of the Indonesian people in general.

Keywords : Entrepreneurship, MLM, MCI

Background

This year of 2018 till 2019 is a political year, an era of very tight

competition and full of uncertainty. At present, Indonesia's economic conditions is

quite sluggish due to the global economic slowdown, weakening of Rupiah’s

exchange rate and declining commodity prices. One of the real effects of this

revolution is the decreasing of public spending which at the end has an impact on

people's purchasing power. In addition, we need to realize that we are entering a

disruptive era now, where so many things change due to technological advances.
Rapid technological growth has led to intense competition and an innovative rate

of change in the market.

Business competition that occurs became an inseparable part of the

company, because the existence of competition is actually one of the important

elements in developing proper marketing strategy. In this increasingly competitive

situation, it is undeniable that Indonesia faces the problem of limited employment

opportunities for the workforce with the recent increase in unemployment. From

the economic point of view, creating one’s business venture will contribute

positively in reducing unemployment and poverty in Indonesia. Of course,a

system that regulates the goals of the business is very required.

When talking about competition in the economic world,

Entrepreneurship is one of the economic concept that may contribute positively in

reducing unemployment and poverty in various countries. In Indonesia, the

government and the private sector begin to provide opportunities for the

community to develop independent businesses. This is expected to help the

government to provide new employment opportunities by working directly with

the community through entrepreneurship-based activities. In this case, education

also has a contribution to increase awareness from the youngster students to

increase innovation and creativity in terms of building independent businesses, so

as creating new jobs. Currently, entrepreneurship competitions have been held by

various parties, from the government and the private sector, but not everyone has

the opportunity to develop entrepreneurship themself.

In the hope of reducing unemployment and poverty, a promising

business system that lead to financial success has emerged. With tiered marketing

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system that able to encourage a person's ability in marketing field, underlies

entrepreneurial methods called Multi Level Marketing (MLM). Multi Level

Marketing (MLM) is a branch of direct selling, which has its own market in this

country. In fact, new players in this business are increasingly growing, both

domestically and abroad, in line with the desire of the Indonesian people to be

able to run their own business with flexible time

In Indonesia, The Multi Level Marketing (MLM) business system is

believed to survive for the next few years at varieties of economic situations and

technological advances. This is very reasonable due to the high demographic

bonus in Indonesia. In addition, the rapid development of social media in

Indonesia and also the motor of the growth of this Multi Level Marketing (MLM)

business.

Multilevel Marketing : An Overview

Financial constraints, soft skills, and the lack of knowledge about

entrepreneurship causes the difficulty of independent businesses to grow rapidly.

Many government programs concerned to develop the spirit of entrepreneurship

and creating new entrepreneurs seems like doesn’t grow significantly. One’s who

are competent and have strong mentality can exist in the world of

entrepreneurship. In the midst of these problems, there comes a business system

that can promise financial success with a tiered marketing system. This is

considered to boost a person's ability at the field of marketing, one of the things

that underlies entrepreneurialism, namely, Multilevel Marketing (MLM). MLM is

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not a new business, according to Santoso (2003. Since the 19th century this

business has emerged, but it still has not had an impact and didn’t developed well

in Indonesia,mainly because of the inadequate conditions and underdeveloped

issue of entrepreneurship. Over time, the MLM business journey continues to

grow in Indonesia by utilizing the existing entrepreneurial trends.

Basically, MLM or Multilevel Marketing is a sales system that uses

consumers as direct distributors (distributors). The price of goods offered to

consumers is the production price plus a commission that is the consumer's right

because it directly helps smooth distribution. This business system starts with

many choices by some circles as an alternative business activity including

students / students. Students and intellectuals who are well educated also start

MLM business as an option to increase their income without always looking for

old people and no activities because there are no working hours on the MLM

business system. MLM business can also grow the entrepreneurial spirit to

students indirectly.

The more operational definition of MLM is expressed by Santoso (2003)

as follows: MLM is a business method related to marketing and distribution. The

focus in MLM is to determine the best way to sell products by emphasizing

innovation in the field of marketing and distribution. It can be concluded that

MLM is a marketing system that relies on direct selling through a network of

distributors that are formed in chains, each distributor who recruits and is

recruited will have to do with the calculation of commissions and bonuses. The

price of goods offered at the consumption level is the production price plus a

commission that is the right of the consumer because it has indirectly helped

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smooth distribution. The implementation of this MLM system aims to save

production costs and marketing costs and convert them as bonuses for distributors.

All MLM sales are done through direct selling where is prospective buyers

do not have to bother coming to the store or supermarket to buy a number of

items, but they can operated their business at home, because MLM distributors

will come to offer their products. The advantage of consumers is that they can

know more about the quality of the goods offered.

There are several opinions from experts about Multi Level Marketing

(MLM) such as Clothier (1990), which argues that Multi Level Marketing is a

method or method of selling goods directly to customers through a network

developed by distributors who introduce the next distributors. Then Harefa (1994)

defines Multi Level Marketing as a distributor organization that carries out multi-

tiered or multi-level sales. Multi Level Marketing or MLM also known as network

marketing is one of the methods of entrepreneurial marketing by utilizing a

network system (Royan, 2002)

A more detailed definition of Multi Level Marketing according to Santoso

(2006) states that Multi Level Marketing is an alternative business method related

to marketing and distribution that is carried out through many levels, commonly

known as Up line (top level) and Down line (lower level ), people will be called

Up lines if they have Down lines. The core of the Multi Level Marketing business

is driven by a network, both vertical and bottom and horizontal left and right or a

combination of both. Then Rivai (2012) defines Multi Level Marketing as a sales

system that utilizes consumers as direct distributors as well as consumers by using

several levels in the marketing system.

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 Some definitions from experts, it can be concluded that Multi Level

Marketing is a distribution and marketing strategy of a product through direct

sales to customers through a network system.

Multi Level Marketing

Producer Retailer Consumer

Producer
Conventional Sales Distributor Sub Agent Consumer
Retailer

Figure 1. Differences in Multi Level Marketing Sales and Conventional Sales

Source : Processed by the author

The MLM development, made a business system that matched the MLM

business in the form of Money Game (pyramid schemes). Pyramid schemes can

be said to be disguised as MLM business strategies. The difference between the

true pyramid and MLM schemes is that there are no real products sold in pyramid

schemes, and the commission is only based on the number of new individuals

recruited into the scheme. In the case of a pyramid scheme, the fees charged are

only to register other people into the scheme and no real product is actually sold

(cash / false investment). Only a few people (the people involved in starting the

scheme) make money, and when no new people can be recruited, the scheme will

break up / fail and most promoters (except those above are usually called up line)

lose their money. The commission they get is only from the registration fee of a

number of people recruited. APLI explained that MLM is basically a direct

marketing system that uses duplication and multiplication principles. Every

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person who is a consumer in this system is required to be a producer, inviting

others to act like they are called duplication. If one person can duplicate more than

one, then that is called multiplication.

In Indonesia currently direct selling or direct selling both single level and

multi level join in an association namely the Indonesian Direct Selling

Association (APLI). This organization is a member of KADIN, part of the World

Federation Direct selling Association (WFDSA). According to the APLI

(Indonesian Direct Selling Association) data in 2015 the number of MLM

companies registered with APLI is 84 MLM companies (www.apli.or.id/anggota/

accessed August 3, 2017).

MLM model business system directs a company to save distribution costs

and promotion costs, including advertising costs, so it is not to waste money by

dividing profits into its members (up line and down line). As we know about

logistics in Indonesia, with various problems such as infrastructure, extortion and

others, the cost of logistics in Indonesia is high, based on data from the Bandung

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Institute of Technology (ITB) study center, where logistics costs in Indonesia

reach 14, 08% of sales. By selling through a Multi Level Marketing system, it is

definitely saving a lot of distribution costs.

Table 2 Comparison of Logistics Cost Indicators

Country PDB (%) Sales (%)

USA 9,90 9,40

JAPAN 10,60 5,90
SOUTH COREA 16,30 12,50
INDONESIA 27,02 14,08
Source : Pusat Kajian ITB, 2016

Associated with the performance of the logistics system in Indonesia, which

in terms of performance is below other countries in Southeast Asia such as

Singapore, Malaysia, Vietnam and Thailand. Where Indonesia is left behind in

terms of customs, infrastructure, and logistical competence. In addition, the

characteristics of Indonesia as an archipelagic country it causes leave a logistical

problem different from that of neighboring countries.

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Figure 2. Logistic Performance Index (LPI) Indonesia 2014-2916
Source : World Bank Indonesioan Bussines

Multi Level Marketing (MLM) sales system is still one of the most

effective ways of selling through direct salespeople without having to do various

promotional tools. As we know it today. Where currently the number of mass

media is increasing, so manufacturers are increasingly difficult to advertise

effectively. When you want to advertise on television, producers are confused

about choosing a station or program that suits their target market. The more

segmented print media, the impact on the smaller number of people who want to

be achieved. In addition, when you want to advertise on the radio or through

outdoor media with people increasingly busy with their daily activities, the more

people want to listen to the radio or see advertisements in outdoor media. Through

the sale system, producers can utilize MLM members as product salespeople

without spending too much money to advertise in various promotional media

facilities.

In addition, the characteristics of the people in Indonesia are known to

have a strong family and networking culture that allows businesses that grow from

networks to grow rapidly. Business systems through Multi Level Marketing

(MLM) unlike other businesses that require large capital and high ability, anyone

and from any background can run this MLM business. Of course anyone who is a

member of MLM will be given motivational and training seminars to improve

their expertise in marketing a product from the MLM. The operational mechanism

in this MLM business system is that a distributor can invite others to participate as

distributors. Then other people can invite other people to join. And so on, all who

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are invited and join are a group of distributors who are free to invite others to an

unlimited level.

Figure 3 MLM Work System

Source : Efayanti (2006)

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 Multi Level Marketing (MLM) entered Indonesia around the 80s, where

the MLM Direct Selling business network continued to flourish again after the

storm of monetary and economic crisis. Players who are involved in the world of

MLM that utilize the momentum and crisis situation to offer business solutions

from foreign "players" and local "players". In 1984 there was an Asosiasi

Penjualan Langsung Indonesia (APLI) which became an organization that was a

place in which direct selling companies were gathered, including companies that

ran sales with multi-level marketing in Indonesia. The development of the Multi

Level Marketing business has become rapidly increasing. According to the tabloid

Network Indonesia report in the August 2001 edition there were around 101 types

of Multi Level Marketing businesses in Indonesia. Multi Level Marketing

business consists of a variety of types, ranging from products, marketing

methods, benefits offered to members, to the membership status of the

company, both the original and multi-level marketing companies that claim to be

Multi Level Marketing.

The Overview of Millionaire Club Indonesia (MCI)

Starting from the desire to build individuals in Indonesian society to have a

better life, a very interesting business idea was formed, namely Millionaire Club

Indonesia (MCI). Millionaire Club Indonesia (MCI) is a community or part of PT.

Indonesian Millionaire Group which was established on February 4, 2011. The

legality of the law from MCI includes:

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 Table 2: Licenses of Millionaire Club Indonesia ( MCI )

License Type Number

SIUP 503/1633.A/436.6.11/2011

SIUPL 78/1/SIUPLT/I/PMDN/PERDAGANGAN/2013

TDP 13.01.1.51.23333

Source: Processed by the author

MCI is a business concept to build a better life starting from the economy,

community, health, and lifestyle. MCI also provides privilege services to all

its members in the form of exclusive products. Being a business partner with MCI

is the perfect solution for a better life

MCI Vision:

Being the best network marketing company to achieve the welfare of its

members both in terms of financial and health.

MCI Mission:

Providing the best service with a guarantee that the members will get

exclusive services in the form of convenience, quality products and networks at

competitive prices. The current Millionaire Club Indonesia (MCI) business scope

is not only within Indonesia, but also extends abroad such as Hong Kong,

Malaysia, Singapore, Taiwan and is still open to other countries. In running

its business, MCI acts as a distributor for health and beauty equipment that

has helped Indonesian people in general and members in particular, because MCI

products in the health sector have provided positive and useful results for the

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community to improve their health. Not only that, MCI also provides

opportunities for those who already feel the immediate benefits of MCI products

to participate in marketing their products and of course get a commission or bonus

from every sale that occurs.

Some of Millionaire Club Indonesia’s products, are:

1. Glucola Gel

A facial foam to remove dead skin cells and brighten the face

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 2. Nano spray

Spray oil that uses nanometer technology to convert water into atomic

particles in a few seconds so that nutrients and oxygen levels in the water can

enter the pores of the skin and serves to remove wrinkles on the skin. Nano spray

will react quickly if combined with a magic stick.

3. Magic stick

Shaped stick with a length of about 10 cm which contains germanium rock

which is very good to maximize nerve performance, glands and tighten the skin.

The use of magic sticks will be very visible when combined with nano spray.

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 4. Bioglass

Is a round glass plate that can emit positive scalar energy in the form of a

frequency of 127 Megacycle of beta Rhytm (127 MBR) within a 5 meter radius in

all directions. Bioglass makes optimal body energy using the chakra system, the

point of controlling the human body's power rotates normally, so self-healing

occurs, namely the body is able to heal itself, like Bioglass is our body's energy

generator.

5. So Shin

Green tea with Chllorogenic acid and brown seaweed. The benefits of So

Shin are helping to lose weight, sources of fiber, energy and vitamins that are

needed by the body.

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 6. Green Tea

It is green tea with low caffeine and contains strong natural anti- oxidants

which are also called polyphenols. The benefits from green tea itself is preventing

the risk of baldness, clearing acne, preventing diabetes, reducing high blood

pressure, helping to lower cholesterol levels, increasing libido and immunity.

7. Pendant Aura

Its Health necklace made of germanium stone without magnetic content that

has the ability to emit Far Infra Red (FIR) which is very good for flowing energy

and increasing stamina, improving blood circulation and maintaining Ph levels in

the body.

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The Multi Level Marketing – Promising Business

At present the entire economy in the world is facing "disruption", as well

as the economy in Indonesia, where the majority of people in Indonesia are very

selective in buying a product or spending money to enjoy a service. What about

the business potential of Multi Level Marketing in Indonesia? Sales prospects

with the Multi Level Marketing (MLM) system in Indonesia are still very

promising. Indonesia is a country with high economic growth and the Indonesian

market is supported by large human resources so that sales through the Multi

Level Marketing (MLM) system continue to grow.

Asosiasi Penjualan Langsung Indonesia (APLI) stated that the value of

direct selling transaction or multi level marketing (MLM) in Indonesia during

2016 had reached USD 1,184 million dollar or equal to Rp 15,75 trillion, with the

transaction value growing 10 percent compared to the previous year which is only

around US $ 1,067 million or Rp. 14.31 trillion (https://bisnis.tempo.co.id;

January 13th, 2018). In addition the World Federation of Direct Selling

Association (WFDSA), a global trade association representing more than 60

MLM sales associations in the world, also said that the prospect of direct sales in

Indonesia is also expected to be more positive, where Indonesia is among the

top 10 countries with the highest direct growth, this estimate is also seen based

on global performance and prospects, where in 2016, the value of direct sales

transactions reached US $ 182.6 billion or increased about 1,9% compared to

2015, As for global growth in the direct selling industry, this was driven by

increases in the three largest regions, namely Asia Pacific 46%, America 33%,

and Europe 20%, the rest in the Middle East and Africa 1%. Whereas based on

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what was compiled from Statista, that globally in 2017, the direct selling industry

was able to generate US $ 189.6 billion.

Figure 4. Global Sales of Direct Selling Industries (In Billion US $)

source: www.statista.com

Millionaire Club Indonesia (MCI) as one of the Multi Level Marketing

(MLM) companies in Indonesia focuses on sales in the field of beauty and health.

The behavior of the Indonesian people who are increasingly focused on

maintaining a healthy body and maintaining appearance to always look attractive

makes the need for health and beauty products in Indonesia continue to increase.

The results of the research entitled "Indonesia Market Behavior Outlook 2018" by

the Indonesian Market Research Association (PERPI) held in the span of time

between the third quarter IV-2017 involved 1,220 respondents in Indonesia about

health that tertiary needs for health and beauty will also increase, even for male

consumer. While the survey results from Daily Social with the title "Indonesia's

Digital Healthcare Services Penetration Survey" show that there are three most

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sought-after information content from the current technology startup services in

the health sector which are sequential Symptom Information Diseases (29.38%),

Health Tips ( 25.61%), and news about health (17.79%). While services such as

online consultation and drug information only get a percentage of 11.05 percent

and 7.01 percent.

Sales through Multi Level Marketing (MLM) is one of the most effective

sales methods, but it must provide a high enough profit because there will be

profit sharing among members of Multi Level Marketing (MLM). In order to be

successful, sales with a MLM system must be able to offer products that are

perceived as unique and different from those in the market to consumers. Key of

successes of the Multi Level Marketing (MLM) business are, among others, the

selection of the right product, where the chosen product already has a market and

readiness in the supporting technology systems and devices, where the system can

stimulate the spirit of Multi Level Marketing (MLM) members in selling products.

What needs to be considered by companies that run a Multi Level Marketing

(MLM) business model is its consistency in implementing communication

strategies and how to convince consumers about product quality and efforts to

maintain consumer confidence, moreover, currently there are still rampant

investment schemes in Indonesia that look similar to direct sales businesses.

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Leadership in Multi Level Marketing

“ Money doesn't go to business with the best products and services. Money flows
to business with the best leaders and the best management team”– Robert
Kiyosaki –

MLM is a means of training on the leadership and mentality of a winner,

because these entrepreneurs will experience various rejections and challenges that

will establish themselves as tough entrepreneurs. One of the biggest values of an

MLM business is the opportunity to get leadership training. The training will

provide education, time and opportunities to develop the most important skills,

namely Leadership, as the main capital to achieve success as a business owner or

entrepreneur. Leadership training will also give you the opportunity to develop

yourself through direct theory and practice, as a capital to become a great leader in

the future.

MLM companies will indirectly shape the leadership spirit of each

member. The soul of good leadership will lead those member to be in better level

than they initially joined the MLM company. Having a good leadership spirit will

certainly benefit both themselves and the MLM company where they work. Some

of the benefits of the leadership spirit including: being able to do a good job,

being able to take immediate action when work conditions are in chaos and many

do not know what to do, easy to spawn ideas and take initiative in every activity

of their MLM company, useful to lead themselves in

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order have a high sense of responsibility towards their works, the existence of a

good leadership spirit for everyone involved in an MLM company, will help a lot

in the company's performance.

Leadership in an MLM business is very vital as in leadership in the world

of work. Leadership is not something that can be created instantly, but requires a

certain set of processes and techniques. In general, the following are 5 techniques

for building leadership in the MLM business:

1. Understand the Importance of Leadership in a MLM Business

The first technique in building leadership in the MLM business is an

understanding of the importance of the figure of a leader. Actually in any case, the

figure of a leader will be very necessary. Like a human body that has a head and

brain to think and run other parts of the body. Lead other body parts such as hands

and feet to move according to the brain's desires. Likewise with leadership in the

world of MLM that involves many people. A leader will influence the

performance of its upline and dowline in promoting goods and offering the

benefits of being an MLM member.

2. Understand the Direction and Instruction from a Leader

In the world of business, direction and instruction from a leader is needed.

Whether in the slightest thing, the leader will try to provide good direction and

instructions for his subordinates. Regulations in a business are very needed, so the

leader must understand and pass it on to his

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subordinates. Acting carelessly without following the rules will be very

detrimental to many people. Especially in a business like Multi Level Marketing

where people are interrelated to one another. Like a human body that is

interconnected, if one part of the body is injured, another part of the body will feel

it too. Likewise with this MLM business, if there are those who do not follow the

rules and instructions from superiors it will have a bad impact on all MLM

members.

3. Understand the Management of the Human Resources

The next technique for building leadership is to understand the importance of

one's human resources and how they are processed. Sometimes with high human

resources but lack of good management, it will run out of line with expectations.

The leader figure here must at least have higher resources than his subordinates.

This is because a leader must be able to control the management of his business.

Leading many people to be in rhythm is not as easy as turning a hand. So it needs

good and trained human resources. It is undeniable that experience also gives

different results in the field. In addition to good management within its business, a

good leader must also be good at maintaining good relations with his business

relationships. Building good relationships inside this type of business will affect

your business in the future.

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4. Understand The Importance of Information

It must be someone who is good at capturing important information in the

business world and conveying it correctly to his subordinates. Building leadership

in the world of MLM does require accurate information and good delivery in

order to avoid misinformation or miss communication between business members

and business relations. Information circulates very quickly in the business world

so that extracting an information that can build a business will be needed. Late in

accommodating information that is useful for the business will make it

experiences a setback. Information rotation can be very fast, so the ability to read

situations is needed.

5. Understand Leader’s Decision

Fast, responsive, and right in making decisions will be very necessary in terms of

leadership. The role of a leader is vital in this matter. Business developments that

are increasingly cruel, making decisions of a leader in running his business is

needed. Don't let a leader experience an error in giving a decision. All decisions

are borne by a leader, so a leader must fight hard in this matter. Any human

resources really affect this.

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MLM Increase Welfare

The advantages of the MLM system have attracted many large world

companies to implement this system in marketing their company's products.

According to Santoso (2003) no less than 200 companies have been engaged in

the Multi Level Marketing field. This data is obtained from the APLI (Asosiasi

Penjualan Langsung Indonesia) which can be called as a container for Multi Level

Marketing companies in Indonesia and part of the World Federation of Direct

Selling Association (WFDSA). In May 2005, there were 60 companies that had

officially become members of APLI and the rest were outside APLI (still in the

process of becoming a member not registering or being rejected because it was not

a valid Multi Level Marketing System). When viewed from the company's

turnover, the total national turnover generated from MLM companies continues to

increase. According to research from the October 2015 SwaPlus magazine, in

2015 the total national turnover was Rp. 2.97 trillion, and in 2003 had more than

doubled in the amount of Rp. 6.24 trillion. This is an interesting subject to study

because MLM businesses have often received antipathy responses from the

public. But in these circumstances, more and more new companies are emerging

using MLM marketing systems.

This is because MLM is one logical method for achieving financial

success. Small business capital, fear of facing large losses, not having a place or

means for business, inadequate experience and abilities, are often the main

reason for someone to start his career as an entrepreneur. As a business system

with very minimal risk, MLM allows one to start a business without worrying

about various limitations. When someone joins a good MLM, a system that

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provides tutorials is generally provided, or there is a distributor network that

accompanies during the learning process up to the product sales stage. This

assistance will facilitate the process of success, rather than having to undergo a

series of trial and error independently.

Furthermore, Multi Level Marketing world is closely related with a reward

system where when the member is able to achieve certain level, the reward earned

will be even greater. Higher level can also be associated with one's abilities and

excellence in the business the are doing which can give positive impact for their

image in front of new consumer and also new network or downline. Time

flexibility can also be one of the reasons why people choose to pursue this path of

businesses. A leader who joins MLM system can build their own unlimited

network. Members who have joined have the right to persuade anyone, anytime,

anywhere with no limited time and place. Work flexibility is what distinguishes

Multi Level Marketing from other business systems that requires the employees to

work 8 (eight) hours a day. In other words, there is no limit on how much one can

achieve. The road to walfare is very broad ahead.

Summary

MLM business has become a business that is the trend of the present, it's

just unfortunate that MLM businesses that are successful in Indonesia and

registered in APLI almost 90% are foreign MLMs, moreover 10 best MLM

companies according to APLI 100% are foreign companies (www.apli. co.id,

2015). Indonesia is a country rich in natural resources. There are a lot of

foreign companies that establish their factory in Indonesia because of its abundant

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resources. Indonesia should be able to create MLM industry. Indonesia's large

population is the main key to MLM success. Indonesia can adopt the MLM

marketing system to enable Indonesia's creative industry to be developed globally.

The government has also supported the MLM system through the passage of the

Trade Law, namely the government recognizes and protects the multilevel

marketing / direct selling industry through the articles of multilevel marketing, so

foreign party cannot utilize Indonesian resources and to avoid economic rents.

Increasing in work productivity is important to the country for the sake of its

economic sustainability. The role of MLM is considered to be able to increase

productivity with a good system. Human resource training and soft skills and hard

skills development systems need to be developed in the MLM system, so

character building can be better and can increase productivity not only in terms of

organizational dimensions but also in individual dimensions.

Businesses with an MLM system can be utilized by Indonesia to become a

vehicle for the development of entrepreneurial souls in addition to helping to

obtain better finances. MLM can be used as a learning tool in terms of marketing

and the members can feel the results of the practice of applying marketing and

entrepreneurship through the income earned in the MLM business.

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Bibliography

Royan, F. M. 2002. Rahasia sukses menjual (Sumber inspirasi distributor MLM

dan salesman). Yogyakarta: Andi.

Harefa, Andreas. 1999. Multi Level Marketing Alternatif Karier dan Usaha

Menyongsong Milenium Ketiga, Jakarta: PT: Gramedia Pustaka Utama.

Clothier,Peter.1990.Multi-level Marketing: A Practical Guide to Successful

Network Selling.Third Edition,Kogan Page,

Rivai, Veithzal. 2012. Islamic Marketing: Membangun dan Mengembangkan

Bisnis dengan Praktik Marketing Rasulullah SAW. Jakarta: Gramedia Pustaka

Utama, Jakarta.

Efayanti, IndriaMukti. 2006. Analisis Kelayakan Finansial Bisnis MLM sebagai

Alternatif Berwirausaha: Studi Kasus Distributor Amway Indonesia dengan

Sistem Network Twentyone. Skripsi, Institut Pertanian Bogor,

Santoso, Benny. 2006. All About Mlm “Memahami Lebih Jauh MLM dan

Pernak-Perniknya”. Yogyakarta: Andi Offset.

www.apli.or.id/anggota/ diakses 03 Agustus 2016

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