Multi Level Marketing Businesses (MLM)

[SiegeTank]

You should be so lucky to get back as much as you put into a MLM scheme. Hell, most people should consider themselves lucky if they only lose their initial investment and not get suckered into tapping credit cards, loans from family and money they need to pay rent and lose all that too.

Caprii is a real estate broker, he can tell ya, I'm sure, about those "free" seminars that teach you how to make money "flipping" distressed real estate. It's "free" to get in the door but then comes the hard sell about laying out thousands of dollars to get the "inside info" you need to "get rich quick."

The thing about all these scams is strip off their particular attributes and they all boil down to the same fundamental structure: take money from gullible people who want to make easy money without working hard. They all rely on "classic" hard-selling techniques that probably come from a handbook someone wrote years ago.

One good thing today is the Internet is a BIG help in discovering cons. Just Google the deal, or visit sites like ripoffreport.com and read the sad stories of those who got conned and now are taking the only revenge available to them: spilling the beans electronically. Makes for for interesting reading.

 

[JimJohnson]

They're scams. The top people make money exploiting those at lower levels, it's the fundamental structure of the organization. I have yet to hear of an example of someone getting in and making money - then again I don't take them seriously so I don't pay a lot of attention.

You do realize that the top level people invest time, the people who do not. Well they don't make money. It is a business of people who are outgoing and willing to go out and get what they want. Its sales nothing more.

That aside, I wouldn't mind hearing the pitch at least. So shoot me a pm.

I actually think it is basically the exact opposite. The whole idea of MLM is predicated on people under you doing the work. You don't make money from the products you sell, you basically break even, or perhaps a small percentage of profit. You make money by placing people under you, and receiving a portion of their sales.

That is why the entire concept of MLM is considered a scam. The people who originate the idea make money, while the people doing the work do not. I have yet to see any type of MLM scheme that is set up, at a fundamentally root level, any differently.

I really am not trying to defend any of these organizations but this is a bit of a short sighted viewpoint. Building the business takes work. People don't just fall into your lap. It takes hours and hours of networking, cold contacts, and working with people to find the diamonds in the rough to build a business enough that it starts to turn a profit. It's all in what kind of work you want to do. I am not a people person, not a salesman. If you are, it can be an outstanding business, even if it is predatory towards those it employs.

All businesses that want to stay in business are about making money. People don't employ others for charity. Even non-profits have to make money to keep their lights on and their doors open. They rely on charity, while businesses like these rely on networking and bringing in new people, and more traditional business relies on manufacturing, selling, or supporting products of some kind. Different approaches, all for a common purpose.

I see your point, but I don't agree with it. Working hard at exploiting people doesn't legitimize your business. Spending years networking, cold calling, fundraising, whatever it is, doesn't negate the ethical ramifications of what your business does. I think Juice Plus is a great example. The founders raised capital, paid for stellar endorsements, ran all the right commercials, "worked hard" but are now under investigation for unsubstantiated health claims. So what happens when Juice Plus gets hit with a class action suit because they were claiming their product does something it doesn't - and everyone who invested piles on?

I really struggle to see a difference between the Bernie Madoffs and Kenneth Lays, and the people who start these companies. Ultimately you're manipulating information, warping public perception, and exploiting the dollars of people below you for personal gain. Or, as we 'Muricans call it, unfettered capitalism.

Obamacare is a scheme to make those at the top rich. New people will never rise to that chart. MLM If you put in the time, you can make money, you dont need to exploit or scheme people. You need to spend the time to find a product you believe in so you can recommend it with conviction to the friends and family you value.

Selling is a mind set, you don't have it. You probably hate most any sales person. May not hate but have a strong distrust at least.

People seem to look at sales people as some look at LEOs. He is a cop must be a power hungry douchebag.


NEWS FLASH:

Just about every company is EXPLOITING people to make the people at top money. Some just make you key in information for 8 hours a day. Some want you to go out and be proactive not reactive while waiting for someone to hold your hand.

Sometimes I think you've grown out of being a reactionary tool, then you prove me wrong.

Thanks for telling me that selling is a mindset, and that I don't have it. Thanks for telling me I must hate every sales person.

I've been in real estate sales for a decade. I co-own and manage my own real estate brokerage firm with multiple agents. I spent a decade building a business I started and have been very successful with, through sales.

Thanks for always being predictable JJ, you're what we call an easy sale.

And people like me who you should have no issue taking money from. So what is your issue with taking money from people who want to give it to you?

 

[CapriiRecords]

They're scams. The top people make money exploiting those at lower levels, it's the fundamental structure of the organization. I have yet to hear of an example of someone getting in and making money - then again I don't take them seriously so I don't pay a lot of attention.

You do realize that the top level people invest time, the people who do not. Well they don't make money. It is a business of people who are outgoing and willing to go out and get what they want. Its sales nothing more.

That aside, I wouldn't mind hearing the pitch at least. So shoot me a pm.

I actually think it is basically the exact opposite. The whole idea of MLM is predicated on people under you doing the work. You don't make money from the products you sell, you basically break even, or perhaps a small percentage of profit. You make money by placing people under you, and receiving a portion of their sales.

That is why the entire concept of MLM is considered a scam. The people who originate the idea make money, while the people doing the work do not. I have yet to see any type of MLM scheme that is set up, at a fundamentally root level, any differently.

I really am not trying to defend any of these organizations but this is a bit of a short sighted viewpoint. Building the business takes work. People don't just fall into your lap. It takes hours and hours of networking, cold contacts, and working with people to find the diamonds in the rough to build a business enough that it starts to turn a profit. It's all in what kind of work you want to do. I am not a people person, not a salesman. If you are, it can be an outstanding business, even if it is predatory towards those it employs.

All businesses that want to stay in business are about making money. People don't employ others for charity. Even non-profits have to make money to keep their lights on and their doors open. They rely on charity, while businesses like these rely on networking and bringing in new people, and more traditional business relies on manufacturing, selling, or supporting products of some kind. Different approaches, all for a common purpose.

I see your point, but I don't agree with it. Working hard at exploiting people doesn't legitimize your business. Spending years networking, cold calling, fundraising, whatever it is, doesn't negate the ethical ramifications of what your business does. I think Juice Plus is a great example. The founders raised capital, paid for stellar endorsements, ran all the right commercials, "worked hard" but are now under investigation for unsubstantiated health claims. So what happens when Juice Plus gets hit with a class action suit because they were claiming their product does something it doesn't - and everyone who invested piles on?

I really struggle to see a difference between the Bernie Madoffs and Kenneth Lays, and the people who start these companies. Ultimately you're manipulating information, warping public perception, and exploiting the dollars of people below you for personal gain. Or, as we 'Muricans call it, unfettered capitalism.

Obamacare is a scheme to make those at the top rich. New people will never rise to that chart. MLM If you put in the time, you can make money, you dont need to exploit or scheme people. You need to spend the time to find a product you believe in so you can recommend it with conviction to the friends and family you value.

Selling is a mind set, you don't have it. You probably hate most any sales person. May not hate but have a strong distrust at least.

People seem to look at sales people as some look at LEOs. He is a cop must be a power hungry douchebag.


NEWS FLASH:

Just about every company is EXPLOITING people to make the people at top money. Some just make you key in information for 8 hours a day. Some want you to go out and be proactive not reactive while waiting for someone to hold your hand.

Sometimes I think you've grown out of being a reactionary tool, then you prove me wrong.

Thanks for telling me that selling is a mindset, and that I don't have it. Thanks for telling me I must hate every sales person.

I've been in real estate sales for a decade. I co-own and manage my own real estate brokerage firm with multiple agents. I spent a decade building a business I started and have been very successful with, through sales.

Thanks for always being predictable JJ, you're what we call an easy sale.

And people like me who you should have no issue taking money from. So what is your issue with taking money from people who want to give it to you?

There really isn't a discussion to be had here. You and I don't share a similar vantage point on sales and service, and what providing value entails. I don't take money from people - I didn't learn to excel in my profession from a weekend seminar at the airport Holiday Inn.

 

[necroman]

MLM is a scam if you cant make more money off selling the product than you do by recruiting people to work for you. The only reason they sell a "product" is because it would be an exact pyramid scheme if they didnt and those are illegal. If you can make a living selling the product only then its legit. If you ahve to rely on others as the primary cash flow its a scam and it will fail UNLESS you get in the very beginning.