By Dan Mitchell, MLM Blog Correspondent
The controversial sales system of multi-level marketing (MLM) has come up with what it hopes is a gem of an idea – flogging diamond jewellery through franchisees.
Mr Fred Ho, who heads the upscale Jewels Defred store at Grand Hyatt Singapore, has linked with MLM company LFI (Singapore) and Hong Kong businessman Ho Wing Kong to sell diamond jewellery.
'Just Diamonds by DeFRED' involves Jewels Defred's Mr Ho bringing his collection to consumers here exclusively via franchise associates, who promote the collection to personal contacts.
Hinging on what he terms 'robustness of the diamond market', Mr Ho, who has more than 20 years of experience in the jewellery industry, believes in the collaboration's potential to grow his business.
'Branching out with the Just Diamonds brand is a natural extension of Defred's core jewellery business to garner a higher market share,' he said.
Individuals who buy $10,700 worth of diamond jewellery – deemed a 'package' – become franchise associates.
They can then enrol additional friends into the business as new franchise associates and earn 20 per cent of what these referrals spend at Just Diamonds.
So a franchise associate who convinces a friend to become a franchisee will receive more than $2,000 in commission.
More than 500 franchise associates have signed up since the collection's April launch.