Digital Natives and Multi-Level-Marketing (MLM): A Perspective

Introduction

Each generation is defined by unique, collective experiences. Researchers and marketers’ study generational attitudes and behaviors to understand and anticipate each generation’s impact. The multi-level marketing (MLM) industry is no different. Through the years, generational perspectives have shaped the evolution of MLM companies and the products and services they deliver. Baby Boomers (born 1946 – 1964) grew up in an era where Tupperware parties and visits from the “Avon lady” were the norm. Gen X (born 1965 – 1980), sometimes called the latchkey generation, was greatly influenced by the increasing number of two-income households with both parents working full-time (Bennett, 2012; Evans & Robertson, 2020). Gen X’s “do it yourself” attitude found the entrepreneurial aspects of MLM companies appealing, and party plan-focused direct selling blossomed. The Millennials (born 1981 – 1996) came next, and alongside them, the Internet. Millennials are used to adapting to rapidly evolving technology and appreciate the convenience of interacting with MLM companies via E-commerce and mobile communication. Today, Gen Z (born 1997 – 2012) is poised to impact the MLM industry. Even with most of its members still in their teenage years, Gen Z makes up 40 per cent of the global consumer population. As more Gen Z-ers come of age in the years ahead, now is the ideal time to get to know them – and identify ways to shift strategies and marketing messages to align with these already powerful consumers. The cascading social and economic impacts of the COVID-19 pandemic are still evolving, but it’s safe to say the working world will be forever changed. When factoring in the generational attitudes of the Millennials and Gen Z-ers who now make up 59 per cent of the global workforce, the change is likely to be transformational. Why is this good news for the Multi-Level Marketing (MLM) industry?

Digital native is a term coined by Prensky (2001) to describe the generation of people who grew up in the era of ubiquitous technology, including computers and the internet. Digital natives are comfortable with technology and computers at an early age and consider technology to be an integral and necessary part of their lives (Bennett & Maton, 2013). Many teenagers and children in developed countries are digital natives, mainly communicating and learning via computers, social networking services, and texting (Wong et al., 2022). Most millennials cannot remember a time before the internet, smartphones, and social media. They are the first digital natives, growing up fluent in technology, constantly connected to an ever-shrinking world, and with instant access to more information than any previous generation (Smith, 2019; Munsch, 2021). Digital natives, born during a time of technological boom and economic doom, Generation Z is fast on technology and hard on savings. They grew up as tech-savvy individuals who used more advanced on-the-go technology in their early life than their predecessors. On the other side, growing up, when the recession hit their families hard, they were more determined to plan their finances. Today, millennials and their younger counterparts, Gen Z, live lifestyles that revolve around their affinity for connectivity, cross-border social circles, and technological skills that have revolutionised how we act, communicate, and work (Lim et al., 2021; Koutropoulos, 2011).