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  • 05-21-2014, 04:28 PM
    IBOFightBack

    Re: WHAT IS MLM about how is it supposed to really work?

    Quote Originally Posted by billybill View Post
    Simple answer MLM scams are those who make money by selling the products to those within and buying the products for thier own use thats 100% Pyramid scam con game
    Note if your purchasing them out of legitimate demand.

    here are 8 steps to help you find the real MLM companies

    The Federal Trade Commission warns "Not all multilevel marketing plans are legitimate. Some are pyramid schemes. It's best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products."[42] and states that research is your best tool, giving eight steps to follow:[42]
    The FTC has a more recent article you might want to consider, which more correctly references consumers - which may or may not be distributors. No retail sales to "outside customers" is a warning sign the products may not be getting purchased out of legitimate demand, but is not illegal per se.

    1. Find — and study — the company’s track record
    2. Learn about the product
    3. Ask questions
    4. Understand any restrictions
    5. Talk to other distributors (beware of shills)
    1. sensible advice

    2. Consider using a friend or adviser as a neutral sounding board or for a gut check
consider it, sure, but unless they've got relevant experience I wouldn't act on it.

[quote]
  • Take your time
  • Think about whether this plan suits your talents and goals

  • [quote]
    sensible advice

    Re the rest of your post, it's citing a wikipedia article which breaks wikipedia's own guidelines for reliable sourcing. It is an unreliable article. Unfortunately there's a cadre of anti-MLM editors on wikipedia that make improving the article virtually impossible.
  • 05-21-2014, 02:22 PM
    billybill

    WHAT IS MLM about how is it supposed to really work?

    Simple answer MLM scams are those who make money by selling the products to those within and buying the products for thier own use thats 100% Pyramid scam con game here are 8 steps to help you find the real MLM companies

    The Federal Trade Commission warns "Not all multilevel marketing plans are legitimate. Some are pyramid schemes. It's best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products."[42] and states that research is your best tool, giving eight steps to follow:[42]
    1. Find — and study — the company’s track record
    2. Learn about the product
    3. Ask questions
    4. Understand any restrictions
    5. Talk to other distributors (beware of shills)
    6. Consider using a friend or adviser as a neutral sounding board or for a gut check
    7. Take your time
    8. Think about whether this plan suits your talents and goals
    The Federal Trade Commission issued a decision, In re Amway Corp., in 1979 in which it indicated that multi-level marketing was not illegal per se in the United States. However, Amway was found guilty of price fixing (by effectively requiring "independent" distributors to sell at the same fixed price) and making exaggerated income claims.[43][44]

    The FTC advises that multi-level marketing organizations with greater incentives for recruitment than product sales are to be viewed skeptically. The FTC also warns that the practice of getting commissions from recruiting new members is outlawed in most states as "pyramiding".[45]



    In April 2006, it proposed a Business Opportunity Rule intended to require all sellers of business opportunities—including MLMs—to provide enough information to enable prospective buyers to make an informed decision about their probability of earning money. In March 2008, the FTC removed Network Marketing (MLM) companies from the proposed Business Opportunity Rule:
    The revised proposal, however, would not reach multi-level marketing companies or certain companies that may have been swept inadvertently into scope of the April 2006 proposal.[46]
    MLM's are also criticized for being unable to fulfill their promises for the majority of participants due to basic conflicts with Western cultural norms.[50] There are even claims that the success rate for breaking even or even making money are far worse than other types of businesses:[51][52][53]


    "The vast majority of MLM’s are recruiting MLM’s, in which participants must recruit aggressively to profit. Based on available data from the companies themselves, the loss rate for recruiting MLM’s is approximately 99.9%; i.e., 99.9% of participants lose money after subtracting all expenses, including purchases from the company."[51] In part, this is because encouraging recruits to further "recruit people to compete with [them]"[9] leads to "market saturation."[14] It has also been claimed "(b)y its very nature, MLM is completely devoid of any scientific foundations."[54]

    KNOW YOUR ROLE

    the end
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