In his usual collected demeanour, Mr Gene Maxon Adigu, a top leader in the Network Marketing Professionals of Nigeria, does not see himself giving up soon on network marketing.

He is the business and the business is his friend. Out of school since 2010, Mr. Adigu now boasts of an annual base income in millions, as well as other fleet of investment and acquisitions. All from network marketing since the last eight years. For a man who read from Robert Kiyosaki to John C. Maxwell to other bestselling business and crazy books while in school, it appears the journey is still far from over. 

‘‘ Entrepreneurship is not for babies,’’ Mr. Adigu told Afrikan Heroes . ‘‘I didn’t just focus on reading only the academic books while in school. And that helped me so much psychologically and mentally. It prepared me well for the world out there, after school. So when I graduated with no job in sight, I resorted to a network marketing business because it was the only business I could start then with small capital. Network marketing is a business that has helped me, and today I am living the life of my dream. ’’

‘‘Network Marketers Are Also Entrepreneurs’’

For a business model that was once valued at US167 billion (2012) globally, engaging at least 89 million network marketers with the Asia-Pacific region of the world forming the largest market with a share of 44 per cent followed by North America, Central and South America (20 per cent share, each) and Europe (15 per cent), Mr. Adigu said network marketing is your regular business with all the structures and the organisation and the workforce and the strategies of established businesses, and not a Chit Fund or some Ponzi Schemes.

‘‘Network marketers are also entrepreneurs, Mr. Adigu said ‘‘Network marketing is not a different business model. In every business in this world, there is network marketing. Network marketing is a profession. Network marketing is a normal business, like every other business on Earth.’’

The World Federation of Direct Selling Associations (‘WFDSA’), which is the global body concerned with the business, and which has the membership of 60 national associations and one regional federation, defines network marketing as “the marketing of products and services directly to consumers in a person-to-person manner, away from permanent retail locations”. An important objective in a Network Marketing model is to generate sales by constant interaction with customers along with engagement of new distributors down the line.

‘‘Network Marketing Business Is A Sustainable Business Model’’

Mr. Adigu does not see the network marketing business model ending soon.

‘‘ Network marketing is a system through which you market your business. It is not the type where you, for instance, pay CNN to run adverts for you. Network marketing is word-of-mouth marketing, which makes it a unique system and can never be outdated. Network marketing will always be a reliable business; in fact, for the next 100 thousandth year. It is a system of referring some other persons’ products and services to your friends and families and you get paid for doing so.’’

Mr Adigu may not be so far from the truth. Vorwerk & Co. KG, a German network marketing company was founded in 1883, and is still in existence 136 years after. The company has presence in over 76 international markets across the world and reported revenue of $3.7 billion in 2013 alone. United States’ Alticor (Amway) founded in 1959 is the world’s leading network marketing company, posting a revenue of $11.8 billion in 2013, and has presence in over 100 countries.

‘‘Network marketing business lasts,’’ he said. ‘‘ The question is the company you are partnering with: are you going to last with that company? You are not supposed to ask whether network marketing business would last. The question should be: would the company you are partnering with last? Are you going to last with that company till you succeed? This question is very important.’’

‘‘The Greatest Challenge of Most Network Marketers Is That They Take Things Personal.’’

For a business that involves selling a consumer product or service from one person to another, in an environment that is not a permanent retail location, Mr. Adigu expects that this would not come without a fight.

Hence, when the mind-spinning, rapid and unexpected rebuff comes, he also does not expect network marketers to swallow it hard. But they have to do so, anyway, if they would want to get ahead. And because most network marketers don’t usually do so, he sees it as a major challenge.

‘‘When you start a network marketing business, learn how to recruit the right network marketers. You need to keep teaching them how to market their products effectively,’ he said. ‘Also, learn how not to take things personal. If somebody tells you that he is not interested in your deal, learn how to swallow it calmly. Don’t take things personal.’’

Mr Adigu also pitched some advice for marketing products. Marketing products is fun, he said, as long as you believe in them and make some research about them. You have to also study why the products are necessary before passing them over to your network.

‘‘ I was promoting a business back then, about some coffee products. Nigerians don’t normally take coffee, but my team researched about these products and we started building the business. It was surprising to suddenly see Nigerians using the products, making coffee from them. In fact, the business was so successful that I averaged over a million naira a month from it. This happened because we were interested in the coffee products; did some research on them and tabled the products’ exceptional health benefits to our target customers,’’ Mr. Adigu said.

Breaking The Ice and Making Profit From Network Marketing

Earning from the Multi-Level Marketing or Network Marketing usually follows an arch: each direct seller recruited can potentially recruit new distributors and create a down line of direct and indirect distributors or sellers. Distributors purchase products to sell to the consumers. They receive commissions and bonuses on the sales made by them and the sales made by their down-line sellers and retail markups. 

Mr. Adigu said network marketing business is so profitable that he once averaged over ₦200 million ($556,000) from the business in a year.

‘‘In a year, for starters, depending on the work you put in, you can earn two to three million naira ($6000), with additional earnings depending on how hard you work,’’ he said.

Global direct selling was a USD 167 billion market in 2013 and employs around 90 million people worldwide. While the industry grew at a low rate of 5.4 per cent in 2012, over 2011 (growth rate of 19.7 per cent), due to global economic slowdown, the long term growth prospects of the industry remain robust. Cosmetics and personal care is the biggest category capturing more than 35 per cent share globally in the network market, followed by wellness products and household goods.

‘‘If You Don’t Have The Stamina To Grow A Business, Just Go and Get A Job’’

Mr. Adigu does not see himself giving up any time soon. He has other plans, though; to work harder and live the best of his life.

‘‘Being an entrepreneur is not for people who easily give up,’’ he said. ‘‘ When you start a business, be prepared that you would give it all your best. Sometimes, giving all your best doesn’t even work. The only thing that usually works in the end is consistency. Consistency is the ice breaker.’’

Charles Rapulu Udoh

Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.