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You wouldn’t be caught dead at
a Tupperware party, but today’s
next-gen subscriber plans (aka pyramid
schemes) are glossy, social media savvy
and maybe even girl-boss friendly.
Sarah Ayoub takes a closer lookTHE
GREAT
PYRAMIDS
Imagine walking into Sephora to try out
aserum you saw online. Purchasing
requires a recurring annual fee and
giving out your contact details, and you
get a sweet cash bonus if you get your
friends to hand over a fee and their
details as well. The more people you
pull, the bigger your reward.
Once upon a time, this would have
sounded alarm bells. Buyers were wary
of pyramid schemes and multi-level
marketing (MLM) businesses,
and invites to Tupperware parties were
fielded by a litany of excuses longer
than the sermon at Meghan and
Harry’s wedding. But these days,
mention an MLM brand – not using the
term MLM, of course – and there’s
scarcely an eye roll in sight.The answer, according to influencer
marketing expert Jane Anderson, is on
your smartphone. “MLMs are more
successful these days because there is
a face beside the product,” she says.
“The Avon catalogue used to come in
the mail with a sticker in the book saying
'Mary will be back next week'.
But now, I can connect with Mary.
There’s the humanisation of the
customer experience. It’s not purely
about the lipstick.” Anderson says
MLMs have embraced micro-
influencing, allowing customers to see
the products transforming people’s lives.
“People buy from people,” she says.
“They buy from people they know,
like and trust. Micro-influencers provide
reasons as to why you need this product
and tell you how to use it. Unlike
celebrities, they reply to comments,
and that makes you feel important.”
And in an era of automated wine
clubs and gourmet food boxes,
the annual fees and monthly spends
don’t raise eyebrows. Anderson says
it’s because we’re partial to the
convenience of subscriptions.
Having your favourite items delivered- whether that’s your favourite serum
or an essential oil – and the validation
you feel when they’re constantly visible
online, intensifies the appeal.“The
average person spends around two
hours per day on social media,”
she says. “If the products are in my
feed, I am continually seeing their
value. I am more likely to keep my
subscription, not cancel it.”
So is it really an all-new approach
to business? Or are they the fads of
old, cleverly disguised with glowing
endorsements and aesthetic flatlays?
Dr Rohan Miller, senior lecturer in
marketing at the University of Sydney,
isn’t surprised by the revival. He says
that taking MLMs to the digital space is
a clever strategy that allows businesses
to use cookies and targeted advertising
to track searches for certain products or
business opportunities. But he warns
people to exercise caution and see
through the many tactics that may be
LIFE:Thanks to the internet, MLMs have
had a makeover. Where they once saw
consultants stashing cartons of face
cream into the back of their car and
pestering loved ones to host product
parties (complete with cob dip and
cubed cheese), they’re now networks
of savvy women with a talent for
21st-century hustling, going from
base-level to boss. Capitalising on the
wellness movement and a spirit of female
empowerment, some are promising
a holistic handle on family health,
all-girl support groups, and a side of
altruism in the form of foreign aid.
So how did they get so successful
(last year, Rodan + Fields was ranked
the #1 skincare brand in America) and,
more importantly, cool?