Tianshi Health Products, a Chinese herbal food supplement firm, is creating a revolution in multi-level marketing (MLM) concept in Uganda.
By Stephen Ilungole Tianshi Health Products, a Chinese herbal food supplement firm, is creating a revolution in multi-level marketing (MLM) concept in Uganda. Despite the existence of three other firms using the MLM concept, Tianshi has already made a big statement of intent to lead, with the recent luxurious awards to distributors. The company gave out 20 BMWs, six laptops, a yacht, a plane, nine-29-inch TV sets, seven PCs and eight Hi-Fi radios. It also gave out 260 BMWs, 71 yachts, 54 planes and 21 villas during the Malaysia awards in January. It expects to give out another 150 BMWs among other prizes during the first Tianshi conference in Nairobi in December. MLM, also known as network marketing and referral marketing, is a common concept in the developed world. The scheme requires that you recruit people not only to buy and sell your product, but who will also recruit people who will not only buy and sell your product but also recruit people.... ad infinitum. This may seem unusual to traditional business people, but Tianshi distributors are reapng big with fat commissions. “No other company even under the MLM concept has been able to give such prizes,†Anne Tasamba, the first local distributor to win a BMW car, said. A Kyambogo University lecturer, Tasamba says MLM eliminates use of traditional marketing and overhead costs. She said distributors are taught about the products and basics on nutrition, which they in turn teach consumers. “It’s a one-on-one word of mouth advertising. You have distributors physically reaching out much more people than traditional advertising,†she said. Tasamba, who said she never expected to drive a BMW or earn sh10m even after another 10 years of teaching, praises Tianshi for making her dreams come true. She said rumours were ripe that bigger multinationals were considering going into MLM concept, due to its massive sales. Tasamba said people who had never tried the concept called it a myth. “MLM is the best way of making millions in a short time. The concept bridges the gap between the poor and the rich. “Many people want to start their our businesses but there is no capital. “MLM is for elite, the helpless, jobless and those without capital to achieve their dreams,†she said. Another distributor, Mathias Kyesagga, a Makerere University second year Bachelor of Information Technology student, is earning more than sh3m a month in commission from his Wandegeya shop. “Which is not little money given what our civil servants earn,†says Kyesagga. He has 3,000 distributors under him from which he earns between 5% and 10% commission. “I’m now financially independent. I used to live in a sh25, 000 room but am now in a self-contained house. I comfortably pay my sh0.9m tuition at the university,†Kyesagga said in an interview at the weekend. Kyesagga also won a BMW car in the recent awards. Since the local terrain doesn’t favour BMW cars, Tianshi has agreed to swap it with a Four-While Drive. Amos Kizito, Tianshi chairman, said distributor awards were based on volumes done by a given team. “The awards are real. Most of the highest achievers have been in MLM. Tianshi gives whatever it promises. Unless you join the business, you won’t believe it. “You will think it’s the usual marketing gimmick,†he said. Kizito said what makes Tianshi different from other MLM firms, was the quality of its products. “They are worth gold, very good; they work very well; it makes Tianshi stand above the rest,†he said. Ambrose Mazinga, who started with sh40,000, now earns a minimum of sh4m per month. He had his first trip out of the country to China and Malaysia after joining Tianshi. “Two years ago, even taxi fare was a problem. I now own a car. In fact, am changing cars like clothes. Am also building my own bungalow at the lake side,†he said. Robin Sun, Tianshi boss, said they paid over sh120m in commission last year. Tianshi started operations in Uganda in January 2004. It is located on King Fahd Plaza. , the firm already has 18 shops in Kampala. Ends