The Rise of Network Marketing Companies in Ghana: A Closer Look

You may have been approached by someone sharing a network marketing opportunity promising you can become wealthy within a short period. While their success stories can be convincing, the rise of numerous network marketing companies in Ghana has caught my attention, leading me to write this article.

According to a Wikipedia article, network marketing was first established in 1945 by the California Vitamin Company, which later became Nutrilite. In 2013, the market was valued at over $178 billion. Although many of these companies have experienced short lifespans, network marketing has become a lucrative business for many due to the gifts and rewards offered to participants. defines network marketing as “a business model in which a distributor network is needed to build the business; usually such businesses are also multilevel marketing in nature in that payouts occur at more than one level.” The concept is controversial, as sales of products or services generate revenue for marketers, who earn commissions through a pyramid-shaped commission system.

The pyramid-shaped commission system relies on recruiting new members to the program. These recruits are also encouraged to bring in more people to help sell the product or service offered by the scheme. The higher you climb the pyramid, the more you earn, but the system is likely to fail if too few people are involved.

Some of the highest earners in network marketing, such as Igor and Andreea Alberts, make $2.1 million per month from the scheme. While these figures may seem impressive, it is crucial to consider the potential consequences before investing time and resources into network marketing.

Some of the top network marketing companies in Ghana, such as Herbalife, Max International, GNLD, Longrich International, and Forever Living, have established a reputable image in the sector, making it attractive for more competitors. These companies deal in medicines and other commodities, creating an alternative employment opportunity for young people interested in business and earning significant income.

Before joining any of these networks, it is essential to consider several parameters, including the age, credibility, size, and growth of the company, as well as the products, compensation plan, training, and technology available. According to renowned writer Dr Said Said, network marketing has a 60% potential of making one a millionaire, which is higher than a typical job. However, the lack of membership at the bottom of the pyramid could lead to the scheme’s collapse.

Since network marketing programs are often exempt from business opportunity regulations and not defined as franchises under state and franchise laws, it is crucial to conduct due diligence before investing any money. Investigating competition, the cost of the scheme, fraud history, mistrust reports, and the experience of others in the scheme can help safeguard your investment.

Author: Prince Akpah


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