Effects of Network Marketing on the Socio-Economic Welfare of Ugandans: Case Study of Forever Living Distributors and Recruits

Abstract

This study focuses on the effects of network marketing on the socio-economic welfare of Ugandans. It was conducted in two major towns in the Country, Kampala and Entebbe focusing on the distributors and recruits of Forever Living Company. A qualitative methodology was used in this study. Primary data was collected using a semi structured questionnaire. The questionnaires were given to distributors located at the headquarters in Kampala located at plot 26 Buganda Rd, Kampala opposite Senana Supermarket as well as in Entebbe, plot 1017 Entebbe Rd. A total of 72 questionnaires out of 96 were filled and returned representing a response rate of 83.72%. Univariate and bivariate analysis was used to analyse the data using SPSS (statistical package for social sciences).The data was analysed using measures of central tendency, mainly frequencies, mean scores and standard deviation and the results presented in tables and graphs. Forever living is a classic example of how the network marketing concept works in Uganda. Besides being a source of income for those involved, the study revealed that most distributors take it on because it has no education limits as compared to traditional jobs. The study as well revealed that most people join Forever Living because they find their products very genuine and healthy. The study also revealed that the fact that it only benefits the people at the top of the pyramid brings out a fraudulent factor given that however much one works, they will never make as much. Given that majority of the distributors in Forever Living have not yet been able to break even, it tells a huge story on whether one should join it to make a full time living or not. Only a small minority of people take their time to fully understand the business concept to be able to work it out well, many others drop out before long thereby propagating the negative perceptions about network marketing.