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INTEGRATIVE CASE 5 PROSPECTIVE OPINION BACKGROUND In late August 2019, Canadian newspaper The Globe and Mail published an article by journalist Ellie Flynn that
INTEGRATIVE CASE 5 PROSPECTIVE OPINION BACKGROUND In late August 2019, Canadian newspaper The Globe and Mail published an article by journalist Ellie Flynn that investigated the multilevel sales model. The article was titled "Multilevel Marketing Sells a Dream: Don't Buy It.*30 The article provides a view on the multilevel marketing (MLM) model for sales that is not flattering. In describing the MLM environment, it mentions how the focus is on individuals often taking the role of distributor and salesperson. But the article follows with this: "delve a little deeper, and you will often find a murky underworld of predatory tactics that have led to allegations of pyramid-scheme business structures and psychological manipulations that mirror those used in cults.*31 Harsh words indeed. The article does present a history of MLM, from the early days of Amway and Tupperware, to the modern times and use of Facebook and social media groups to generate leads. However, in the end the MLM world was summarized as a place where a handful of people can make a lot of money, but where many individuals who invest in an MLM program end up losing money. The article goes on to include that being recruited seems to be a constant occurrence, and one that people need to guard against. "Any time I see the words 'exciting opportunity, 'work from home' or 'message me for info,' alarm bells go off. Perhaps I've become cynical, but I can't help but wonder what the intent behind those messages is."32 One week later, on September 7, 2019, the Direct Sellers Association (DSA) of Canada published a response in The Globe and Mail to respond to the claims made in the August 31 article. Peter Maddox, the president of DSA, described the MLM in terms of it being part of the direct selling world, and highlighted the various actions that have been taken to ensure the veracity of the MLM model. Maddox noted: "DSA's member companies work diligently to help participants succeed, and it is in their best interests to promote personal success. For consultants, the barriers to starting their own business are minimal compared to other entrepreneurial opportunities, and it is easy to exit if it's not for them."33 One aspect of Flynn's article that Maddox and the DSA did not address was issues around prospecting. In her article, Flynn details how in one undercover investigation she conducted with an MLM company, new distributors were encouraged to target people based on their "vulnerabilities... to find people's 'weak points,' and use them as reasons they should join the company."34 She goes on to suggest some changes that are needed to the rules around MLMs: "Tighter regulations are needed, which force companies to publish realistic earning potential to any new recruits...There should also be rules on how much emphasis can be placed on recruitment. If the companies are encouraged to focus primarily on sales, I believe there would be less room for exploitation."35 CURRENT SITUATION As you read over this rather damning article, the last sentence (above) really strikes a chord. The idea that MLMs are not about sales is uncomfortable for you, the new Manager of Operations and Member Services at the Direct Sellers Association of Canada. You feel that a stronger, clearer response is needed to this article. The piece casts a rather long shadow on the world of MLM, and the response from the DSA has not shed enough light on that shadow. You have decided that your first task is to properly answer Flynn's article with one of your own. You get in touch with the editorial board at The Globe and Mail, and they are amenable to running an opinion piece from the DSA. The paper mentions it would like to see a response based on established sales practices. Given your concern over that quote on recruitment from the original article, you decide the best focus would be on strategic prospecting. You remember how much good information can be gleaned when understanding the role of prospecting in establishing a good dialogue. You are told to keep your opinion piece between 250 and 500 words. You are excited at the opportunity but want to go back to your notes on prospecting from your time in school. You want to determine how best to represent your field, and there needs to be multiple levels to your argument.
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