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Allure of riches draws young Iranians to network marketing

Network marketing is growing increasingly popular among young Iranians looking for new ways to make a quick buck.
Iranian youth sit at the Jee Café in the capital Tehran on February 25, 2016. / AFP / BEHROUZ MEHRI        (Photo credit should read BEHROUZ MEHRI/AFP/Getty Images)

TEHRAN, Iran — During the past few years, network marketing has become a popular occupation among the youth in Iran. Having successfully managed to distance themselves from controversy involving pyramid schemes, these network marketing firms operate with all necessary licenses and permits.

As a business model, network marketing has been present in Iran since 2009. To generate substantial revenues, each marketer must recruit sellers to his or her network. In theory, if each marketer recruits two people as sub-marketers, and each of these individuals in turn recruits two more marketers, the original marketer will earn commissions from four people on the second tier. The arithmetic is straightforward: eight earners on the third tier, 16 earners on the fourth tier, and so on. In other words, there is room for exponential growth if the number of earners on different tiers keeps increasing. In the United States, companies that fall under the network marketing umbrella include brands such as Avon and Tupperware.

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