Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 3, 2023 erstellt
Description:
As stated by Steve Jobs, the dots can only be connected by looking backwards, and not forward. The beginning of commerce can be traced back to the beginning of civilisation, and in those days, people relied on each other for information on products and/or services available at the time. Thus, the concept of network marketing (NM) can be traced back to the inception of civilisation. However, people were not rewarded for sharing information about products and/or services. With the passage of time, sales teams were organised, and businesses started to appreciate the importance of a vibrant salesforce. Consequently, this appreciation led to the establishment of businesses that relied solely of sales reps, also known as agents or canvassers. This necessitated the use of the multi-level marketing (MLM) business model. Today, the MLM industry is a multi-billion-dollar industry, thereby attracting many new start-up businesses to embrace this business model. One industry that has significantly embraced the MLM business model is the crypto assets (CAs) industry, particularly in the crypto trading (CT) area. However, the MLM business model has been tainted over the past years because of various reasons. Hence, the main objectives of this study are to 1) restore the reputation of the MLM business model, 2) and to determine its effectiveness in African CT. From the results, it was found that NM is at the heart of MLM, and many large businesses have once employed or are using NM to increase awareness and/or sales. Regarding its effectiveness in African CT, it was found that the use of the MLM business model in CT enhances investment, employment, and entrepreneurship opportunities in the crypto space