Thirty years ago, I had the rare opportunity to teach a full-semester course on network marketing, also known as multilevel marketing (MLM), at the Ateneo de Manila University. At the time, this subject had never been formally taught at the university level. I remain grateful to Rudy Ang, then chair of the management department, for trusting me to introduce and lead a course on a business model that—despite involving some 4 million direct sellers in the Philippines—was often misunderstood.
Many equated MLM with pyramid schemes, and I believed it was necessary to correct that misconception through structured education. Later, I taught the same subject at De La Salle University and authored a book on network marketing, which continues to be available at National Book Store.
In my classes, I encouraged students to build websites to help distinguish legitimate MLM from illegal pyramids. I also developed an eight-point test to assess whether an MLM business was operating legally and ethically, which was later adopted by the Direct Selling Association of the Philippines. My involvement extended to participating in regular hearings at the Department of Trade and Industry, where I worked with others to help companies shift from illegal structures to compliant compensation plans.
Why MLM is relevant today
Today, as global fuel prices rise and inflation pressures pinch household budgets, more Filipinos are searching for legitimate secondary income sources. In this environment, the principles of MLM, when practiced responsibly, are especially relevant: a low-capital, home-based business model that rewards effort and relationship-building.
Understanding the MLM business model
MLM is a structure where individuals earn income not only through direct sales but also by building a network of sellers, from whose sales they may earn a percentage. This self-replicating model allows those who enter earlier to benefit from the performance of those they help develop. What sets legitimate MLM apart from illegal pyramid schemes is the emphasis on actual product sales, not mere recruitment.
Accessibility and opportunity
MLM opens doors for individuals who may not have access to large amounts of capital. Unlike traditional businesses, which require inventory, staff and physical infrastructure, MLM offers a low-cost way to start and operate a business, often from home. It has been called the "people's franchise" because of its accessibility and relatively low barriers to entry.
Many people succeed in MLM, some while working full-time jobs, others as an alternative to employment. Success comes not from shortcuts but from consistent effort, discipline and the ability to nurture relationships.
A level playing field
One of MLM's strengths is that it does not discriminate. Traditional employment paths often require degrees or professional experience. In MLM, what matters is willingness to learn, persistence, and the ability to connect with others.