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  1. #1
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    MLM: A Word On Our Industry

    Tonight I had an urge to start a post about our industry. The words Multi-Level Marketing and scam are tossed around so freely while speaking regarding the MLM industry . . So, my question is to you is --- Do you believe network marketing is a scam? According to Webster’s Dictionary, a scam is a “fraudulent business scheme, a swindle”. Want me to break it down even more? Okay! A scheme is a secret or devious plan. A swindle: To cheat or defraud of money or property.

    Alright, enough of the Webster’s “dictionary term” of a Scam. The first thought that comes to my mind when I hear the word is simply CHEAT. To cheat someone/something out with knowledge of something that the second party has no idea of.

    Unfortunately, MLM is an industry that gets bashed on a great deal for conducting illegal pyramid schemes. While there ARE a lot of schemes out there. There are far more great opportunities to take advantage of as well. It’s one of those cases where “A rotten apple can ruin it for a whole bunch”. You will always find that there are people who will NEVER EVER agree with the concept of Multi-Level Marketing (Network Marketing). Why? Simply, because there are individuals who are 110% comfortable and content with the idea of working 40 hours a week for 40 years. And, there is NOTHING wrong with that if that truly makes the individual happy. Your happiness doesn’t promise that it will be MY happiness and vice-versa. However, it’s a shame when you get a person who really wants to change their financial future but won’t invest their time to look at the industry because Sally or Tony told them “Oh it’s one of those pyramid schemes.”

    What people fail to realize is that Network Marketing is just another form of marketing. Businesses market in various ways. Through press releases, billboard ads, commercials, magazines, act…you get my drift? Word of Mouth marketing is the backbone of MLM. How often do you find a great place for dinner that you tell your friends about? How often do you find a great movie that you talk to others about? How often do you find a good cocktail (or beer in my case=0) ) that you drink and tell a friend “YOU HAVE TO TRY THIS”? It happens every single day. We live our lives daily by referring products and services to others for companies that don’t pay us a dime! I figured if I could find something I was 100% passionate about I would have no shame in referring my products or services to another individual.

    What I do have a problem with (as well as many that are religiously against MLM) are those pyramid schemes that are simply a shift of wealth. There is no real product being distributed from one individual to another or there is no service being offered. Fortunately, many of these fly by night deals are usually shut down quickly. I feel for the people who are negatively effected by these scams because it gives them a false perception of how beneficial our industry can really be. Another aspect that I have a problem with are the companies that overprice their products for the sole purpose of paying commissions. Now, I am aware that 80 percent of MLM companies have to jack of their prices a bit to pay commissions, but I don’t agree with the fact that some of these companies are telling their distributors “You have to be on $200.00 auto ship” in order to qualify for this or that. The point of joining MLM is to be able to create wealth. Not strip it away from us or the individuals we want to bring in. It never made sense to me why someone would join a company and pay 150.00 a month for xyz simply so they can take part of a company that will make them money. Here is a wake up call. STOP ripping people off! Your friends and family can go the local store and pick xyz for 20 percent less then what you are offering. Sure, I know you are asking “please do me a favor”, but reverse it for a second, how about you do your friend a favor and stop asking them to buy your overpriced product. Another aspect that gets me mad, or what I believe gives our industry a bad name is when ALL of the money comes from recruitment. If you have read one of my other posts. I will be completely honest when I saw I never had a problem recruiting people in my business. It was one of my favorite aspects of my company. Why? Because my previous company was ALL BASED OFF OF RECRUITING. It took me awhile to figure it out. Not because I was dumb with numbers, rather, because I never wanted to admit there was no residual future for me.
    With all of this being said I want to give my personal opinions on what I believe an new individual should look at when looking to make an income with this industry.

    1.) The Product/Service- Ask yourself this question. Would you buy the companies product/service if you were not part of the company? This aspect is so important because this is what will make you or break you. Your belief is more important than your ability to speak. Don’t get this mixed up with being brainwashed. That’s a whole other story. Your belief in your product will ultimately determine your success in your company. I suggest you look deep down inside and ask yourself…”What am I truly passionate about”. Are you passionate about promoting a phone service or telecom service? Are you passionate about health and wellness? Are you passionate about impacting others? Determine what exactly it is that you love and run with it.

    2.) Your Upline/Mentor- In my eyes this is a very important aspect that will have an effect in your success as well. Be careful who you pick as your personal mentor/success coach. You will find that there are large amount of people in this industry who are after the quick dollar. I have experienced it first hand. It’s not a great feeling when you put your trust in someone’s hands to have it all ripped out and left to dry. Your personal mentor should be someone who is willing to be there anytime you need them. This person should be someone that is willing to invest their time in order to help you succeed. The smart mentors in this industry all helped others get to where they are, which is the exact reason for their success. One of the best salesmen of all time said “You can have everything you want in life, just as long as you help others get what they want” -Zig Ziglar. Your personal mentor should put your success before their own. Why? Because their success is determined on your success. Make sure you find someone who is genuinely there to help you through the “emotional rollercoaster”.

    3.) The Compensation Plan- This is a VERY important aspect when researching the industry. The Compensation Plan will show you what exactly it takes in order to get finically where you want to be. This is an aspect that MANY FAIL TO RESEARCH before they get involved. Ask yourself these questions. Can I make (the specific amount of money you want to make RESIDUALLY each month) without sponsoring thousands of reps). Now don’t get me wrong. Your goal should be to get as many customers and reps as possible. However, make sure that the “nuts and bolts” of your compensation plan isn’t based all around recruitment. This goes back to the saying “Build your house on sand , it will sink. But if you build your house on a rock, it will last through any storm”. I can not stress the importance. Your compensation plan should be evenly balanced. There should be an amount set out for you when you successful train a new distributor, and there should also be a good RESIDUAL payout when you acquire customers. I have seen too often where people get involved with businesses that make the meat of their money in recruitment only to be let down a year after doing their business full force to have nothing to show. No momentum ---nothing.

    This post may seem “back and forth” from subject to subject but I had to lay on the line what I feel separates and determines what is a scam and what is a legitimate business opportunity. To sum it up---find a company that 1) Has a good product that is not overpriced, 2.) A company that has a compensation that will pay you good residuals and good training bonuses. And most importantly---find a company that FULFILLS your needs. We all have different needs, so don’t be forced into a business that you are not truly passionate about. This in an incredible industry with unlimited potential…treat it as a business and it will be your business. Best of Luck to everyone in their endeavors!



    Are there scams out there??? Sure
    Is every MLM a scam??? Absolutely not…
    Last edited by PowerOfCards; 04-28-2006 at 07:22 AM.
    FYL's response to ACNs revenue their 5th year in business:

    Originally Posted by freeyourlife
    ACN did in the 100's of millions.

  2. #2
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    Re: MLM: A Word On Our Industry

    Calling MLM scams makes it to easy for the true believers to come back with the "I get my check" or "they are 10years old" stuff so how about we just call them deceitful.

    1.) The Product/Service
    I agree with what you said here.

    2.) Your Upline/Mentor
    I think a mentor that makes money from you and your efforts will only every give you lets call it sightless biased views and is a very BAD idea.

    3.) The Compensation Plan
    This where the scam part comes in, if you were just selling a product fine and good but your not. You need people under you to make money and you sell them the idea of making money but this is then a pyramid and is then mathematically doomed to fail. Ok sure the top guys make lot, but the last few levels to join get screwed and the need for such complex matrix’s with all the bonuses this and diamond that stuff the only purpose I see that, that has is to hid facts in smoke and mirrors as they say. talk about getting bogged down in the detail.

    The other big problem I see is the so few are will to so the real numbers on the web sits.

    The true cost and the "extras" they push you buy.

    How many people join, stay or make money. They are very happy to show you the one guy and his 200k check.

    If any company did this after Enron they would all (the directors)end up in jail.

    And when was the last time you found a MLM site that mentions Tax liability in the marketing spiel.

    I just can't see how I can do “business” (not that I would call it that) with people that deliberately don't disclose all the facts.

    This does not mean you cant make money from a mlm...just that you cant do it and expect to go to heaven or paradise which ever you happen to believe lol

  3. #3
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    Re: MLM: A Word On Our Industry

    Waza-

    You made some great points. "Check flashing" is a huge problem in our industry today. What I don't understand is this. Many in the MLM industry look at new prospects as a
    "SALE" for them. I know people who flash their checks all the time. I also know people who look at new prospects as "closing them into the business". This makes absolutley no sense to me. What I have found this is, the people who will end of making money and doing well with their company are the individuals that MAKE the DECISION to join themselves without any pressure. The ones that you have to "close" in the business are usually the ones that don't do a damn thing. Check flashing may work to grap the persons emotions at the time at the sale, but it sure as hell won't give them the motivation on a daily basis to go out and do business. People use this tactic as a way to get people in, and I agree...it doesn't make sense. Atleast not in our industry anyway. People should put the opportunity on the table and simply ask the person "Do you see yourself making money with us". Yes? Good, let me help you! No, not a problem thanks for looking.
    FYL's response to ACNs revenue their 5th year in business:

    Originally Posted by freeyourlife
    ACN did in the 100's of millions.

  4. #4
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    Re: MLM: A Word On Our Industry

    Quote Originally Posted by PowerOfCards
    Waza-

    You made some great points. "Check flashing" is a huge problem in our industry today. What I don't understand is this. Many in the MLM industry look at new prospects as a
    "SALE" for them. I know people who flash their checks all the time. I also know people who look at new prospects as "closing them into the business". This makes absolutley no sense to me. What I have found this is, the people who will end of making money and doing well with their company are the individuals that MAKE the DECISION to join themselves without any pressure. The ones that you have to "close" in the business are usually the ones that don't do a damn thing. Check flashing may work to grap the persons emotions at the time at the sale, but it sure as hell won't give them the motivation on a daily basis to go out and do business. People use this tactic as a way to get people in, and I agree...it doesn't make sense. Atleast not in our industry anyway. People should put the opportunity on the table and simply ask the person "Do you see yourself making money with us". Yes? Good, let me help you! No, not a problem thanks for looking.
    A little of topic, but regarding PowerOfCards' company, this is a google search on "greetings cards"

    http://www.google.com.pr/search?q=gr...l&start=0&sa=N

    considering that search, where is the value of paying $99 bucks for a Greetings Cards opportunity?

  5. #5
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    Re: MLM: A Word On Our Industry

    Scamblighter,

    Hey bud! Although, I would love to get into the benefits of my personal company, I am not here to publically endorse my company. If you want to shoot me an e-mail or PM feel free to do so! I am more than happy to to explain the value of following up with prospects, customers, and even friends and family. It can come back 10-fold. The most successful sales people in the world are all huge believers in the "follow-up" and building and maintaining personal relationships with these individuals. The niche is huge. Also, I DO agree with you that you may be questioning the value of greetings cards AS FAR AS ECARDS. I find that ECARDS are highly ineffective for follow-ups and building relationships. The Google search you showed up showed the sites of Egreetings. I am not a big fan of those what so ever. Who is to say that a person checks their e-mail everyday? So, I do agree with you on the Egreetings---not very much value. The thought is incredible, however, the value? I agree there isin't too much! Again please e-mail me or feel free to PM me! Last thing I want to do is come on this board and get bashed for spamming! Look foward to hearing from you!
    Last edited by PowerOfCards; 04-28-2006 at 05:49 PM.
    FYL's response to ACNs revenue their 5th year in business:

    Originally Posted by freeyourlife
    ACN did in the 100's of millions.

  6. #6
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    Re: MLM: A Word On Our Industry

    Another HUGE but great post, as always B... now some questions...

    Quote Originally Posted by PowerOfCards
    Now, I am aware that 80 percent of MLM companies have to jack of their prices a bit to pay commissions, but I don’t agree with the fact that some of these companies are telling their distributors “You have to be on $200.00 auto ship” in order to qualify for this or that. The point of joining MLM is to be able to create wealth. Not strip it away from us or the individuals we want to bring in. It never made sense to me why someone would join a company and pay 150.00 a month for xyz simply so they can take part of a company that will make them money. Here is a wake up call. STOP ripping people off! Your friends and family can go the local store and pick xyz for 20 percent less then what you are offering. Sure, I know you are asking “please do me a favor”, but reverse it for a second, how about you do your friend a favor and stop asking them to buy your overpriced product.
    Where do you think the cut-off point where "too much is too much" is? Is $120 still too much? $100? $50? Where do you believe the point is... that it should NOT send off a red flag?

    What do you consider to be overpriced? Would you pay a bit more for a product if the quality was better than anything you could find in a store? I think that VALUE should be looked at more than price.




    I agree COMPLETELY with your 3 things that you should look for before joining a company... but like someone said in another thread.. you should also read the company's Policies & Procedures to make sure there isn't anything shady in there. So that should be #4.
    I do not believe that MLM/Network Marketing is a bad business model. I believe it's the shady people in MLM that make it LOOK bad. As long as you work hard, run your business ethically, and work with ethical people, then MLM can help you reach your financial goals... whether it's just to make extra money on the side or a full-time income.

    "Never argue with an idiot. They just drag you down to their level and beat you with years of experience."

    Pink Zebra Sprinkles

  7. #7
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    Re: MLM: A Word On Our Industry

    April,

    Very good points. I agree 110% with you on #4. As a matter of fact, that should be #1. There are far too many ethicial issues with some companies that people fail to see. If they would READ the policies & procedures BEFORE they had joined XYZ company there wouldn't be so many people feeling like they got "scammed". Great point!


    Now, to answer your question. While I do believe the VALUE is incredibely important in the product. I also believe some of these companies are charging ENTIRELY to high for auto-ship. There are companies out there that are encouraging reps to get on autoship for $160.00+ per month in order to be qualified. Now, if there was an incredible product that's VALUE was well worth the $160.00+ then I would be ALL for it. But, this is what I have found. Many of these companies are requiring these high auto-ships which products far exceed how much the distributor should consume. (i,e. a company that is shipping 4 or 5 bottles a month or jugs of pills to qualify). What is the person supposed to do with the extra 4 bottles a month? Let their friends drink up on it while it piles up? Now, when I do think is smart is when a company has a GREAT product with GREAT value with a REASONABLE price. I am part of a seperate company because I love their product. While I do not actively promote the buisiness, I do love the product. I take it every month. This company sends out a bottle and samples for their distributors to GIVE out. I think this is smart because 1) The company is not sending an excess amount of product just so they can spend $160+ a month which pays good commission. And 2, they provide their distributors with samples so that they can sample others who would benefit from their product. It's a great marketing move.

    The word overprice is all in the prespective of the individual. So, the VALUE of the product is what is important. People just need to make sure they aren't paying 200.00 for the VOLUME of the product.

    Great post April!
    FYL's response to ACNs revenue their 5th year in business:

    Originally Posted by freeyourlife
    ACN did in the 100's of millions.

  8. #8
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    Re: MLM: A Word On Our Industry

    Quote Originally Posted by PowerOfCards
    I am part of a seperate company because I love their product. While I do not actively promote the buisiness, I do love the product. I take it every month. This company sends out a bottle and samples for their distributors to GIVE out. I think this is smart because 1) The company is not sending an excess amount of product just so they can spend $160+ a month which pays good commission. And 2, they provide their distributors with samples so that they can sample others who would benefit from their product. It's a great marketing move.
    haha... being that I'm also part of that "seperate company".. I know exactly what you're talking about... and I completely agree. :)

    I agree with the rest of your post as well...
    I do not believe that MLM/Network Marketing is a bad business model. I believe it's the shady people in MLM that make it LOOK bad. As long as you work hard, run your business ethically, and work with ethical people, then MLM can help you reach your financial goals... whether it's just to make extra money on the side or a full-time income.

    "Never argue with an idiot. They just drag you down to their level and beat you with years of experience."

    Pink Zebra Sprinkles

  9. #9
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    Re: MLM: A Word On Our Industry

    Hey guys, i figured out the real reason why so many people cast a negative eye on this business. It's simple really, anything worth doing in life is NEVER easy. People don't get wealthy easy, becoming wealthy takes emotional and physical investment. So when you have something like MLM, low cost, so no real emotional or physical investment there. It's not like you're spending hundreds of thousands of your own dollars. More like a couple thousand a year. Maybe like 10k max per year to run your business. Oh my god, that's so much lol.

    The real reason is this...if people weren;t negative about it, it would be too easy to build wealth...that's it. So we have to have a struggle, it has to be hard, and people have to be against you in order to make it something that will make you wealthy. So that's it, we should thank the people on this site, cause it weeds out the people without true fortitude and sticktuitiveness.(sp?) Because without them, everyone would be rich from MLM :)

  10. #10
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    Re: MLM: A Word On Our Industry

    Quote Originally Posted by cscirpoli
    Hey guys, i figured out the real reason why so many people cast a negative eye on this business. It's simple really, anything worth doing in life is NEVER easy. People don't get wealthy easy, becoming wealthy takes emotional and physical investment. So when you have something like MLM, low cost, so no real emotional or physical investment there. It's not like you're spending hundreds of thousands of your own dollars. More like a couple thousand a year. Maybe like 10k max per year to run your business. Oh my god, that's so much lol.

    The real reason is this...if people weren;t negative about it, it would be too easy to build wealth...that's it. So we have to have a struggle, it has to be hard, and people have to be against you in order to make it something that will make you wealthy. So that's it, we should thank the people on this site, cause it weeds out the people without true fortitude and sticktuitiveness.(sp?) Because without them, everyone would be rich from MLM :)

    Well said! Being able to acquire WEALTH is a science to an extent. It's a long road of trial and error. Taking what works with you, leaving behind what sets you back. I love how you brought in the emotional investment. It's a huge investment in yourself. Too many people think it will happen over night. If they don't make $100k in a month off the top they associate it with a scam. It's a long hard road. The ones that get to the top chose a company they were passionate about and stuck with it. Vision is very important when it comes to achieving goals. Too many look for the easy way out. Thanks for the insight!
    FYL's response to ACNs revenue their 5th year in business:

    Originally Posted by freeyourlife
    ACN did in the 100's of millions.

  11. #11
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    Re: MLM: A Word On Our Industry

    Quote Originally Posted by PowerOfCards
    Too many people think it will happen over night. If they don't make $100k in a month off the top they associate it with a scam. It's a long hard road. The ones that get to the top chose a company they were passionate about and stuck with it. Vision is very important when it comes to achieving goals. Too many look for the easy way out. Thanks for the insight!
    Well, fellas, one of the problems is that it is quite often PRESENTED or at least IMPLIED that it WILL be easy. And therein lies one of the many problems with the industry. I know Chris doesn't act that way, but way, way too many people out there DO. I've heard the pitches. In fact, some of the people I've seen present are expert at implying the fast/easy stuff WITHOUT actually saying it. And that is the fine art of salesmanship. But it still ain't right.

  12. 04-28-2006, 10:18 PM

    Reason
    duplicate

  13. #12
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    Re: MLM: A Word On Our Industry

    Quote Originally Posted by openQuestion
    Well, fellas, one of the problems is that it is quite often PRESENTED or at least IMPLIED that it WILL be easy. And therein lies one of the many problems with the industry. I know Chris doesn't act that way, but way, way too many people out there DO. I've heard the pitches. In fact, some of the people I've seen present are expert at implying the fast/easy stuff WITHOUT actually saying it. And that is the fine art of salesmanship. But it still ain't right.

    Or how about when you hear the closing line...

    "Just sign in and you will get overspill from my organization. We will do the work for you". These type of distributors need to be sent off on their own island.
    FYL's response to ACNs revenue their 5th year in business:

    Originally Posted by freeyourlife
    ACN did in the 100's of millions.

  14. #13
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    Re: MLM: A Word On Our Industry

    Quote Originally Posted by PowerOfCards
    Or how about when you hear the closing line...

    "Just sign in and you will get overspill from my organization. We will do the work for you". These type of distributors need to be sent off on their own island.
    I will pay you buzzillionz if you send all mlmers that say that... success2u buzz

  15. #14
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    Re: MLM: A Word On Our Industry

    Powerofcards (or others) would you like to address this part of my post a little more?

    Quote:
    3.) The Compensation Plan


    This where the scam part comes in, if you were just selling a product fine and good but your not. You need people under you to make money and you sell them the idea of making money but this is then a pyramid and is then mathematically doomed to fail. Ok sure the top guys make lot, but the last few levels to join get screwed and the need for such complex matrix’s with all the bonuses this and diamond that stuff the only purpose I see that, that has is to hid facts in smoke and mirrors as they say. talk about getting bogged down in the detail.

    The other big problem I see is the so few are will to so the real numbers on the web sits.

    The true cost and the "extras" they push you buy.

    How many people join, stay or make money. They are very happy to show you the one guy and his 200k check.

    If any company did this after Enron they would all (the directors)end up in jail.

    And when was the last time you found a MLM site that mentions Tax liability in the marketing spiel.

    I just can't see how I can do “business” (not that I would call it that) with people that deliberately don't disclose all the facts.

  16. #15
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    Re: MLM: A Word On Our Industry

    Quote Originally Posted by wazzaa
    This where the scam part comes in, if you were just selling a product fine and good but your not. You need people under you to make money and you sell them the idea of making money but this is then a pyramid and is then mathematically doomed to fail. Ok sure the top guys make lot, but the last few levels to join get screwed and the need for such complex matrix’s with all the bonuses this and diamond that stuff the only purpose I see that, that has is to hid facts in smoke and mirrors as they say. talk about getting bogged down in the detail.
    I think you just look at MLM different than some of us do. I am completely against MLMs that focus on recruiting, but there ARE some MLMs out there that pay people WELL for getting customers and selling the product. Those are the MLMs I like.

    The way I see it is this (and I'm a little tired right now, so sorry if I ramble and confuse you)... say you find the right MLM and you're making good money by just selling the product. A friend or aquaintance comes up to you and asks you what you're doing now, so you tell them you're in this company selling this product. They think it's interesting and could use some extra money, so they want to know how to get involved too. So you tell them and they join. You just got the company a new distributor... shouldn't you get a portion of what that distributor sells? I think that's fair.

    Also I hate how people act like there is going to come a point where no one else in the entire world is going to sign up.. AKA "the bottom." Are they forgetting that there are millions of people turning 18 every day? I think "saturation" is really a myth. I find it hard to believe that there will be "too many people" in one company in the world where no one else will ever want to join it.

    Okay just so I didn't confuse you on the saturation issue... lets have an example. Avon... the company is 120 years old and is in over 100 companies. If any MLM company is saturated, it's Avon. BUT... they're still getting new distributors every day, and there are still people out there who do not have an Avon lady in their area. That means it's not saturated... and if a company like Avon isn't saturated.. I doubt that any company is or ever will be.

    I think things happen that LOOK like saturation. Like when a lot of people in a small area (like mine) join, and ultimately quit because it was the wrong company for them.. then they badmouth the company and because this is such a small area and everyone knows everyone.. they all get negative opinions about the company and no one wants to join it. That's not saturation though, that's negativity.. and we all know how fast that spreads.


    Quote Originally Posted by wazzaa
    The other big problem I see is the so few are will to so the real numbers on the web sits.

    The true cost and the "extras" they push you buy.
    I agree that they should let people know that there may be extra costs, but knowing a "true" cost can be difficult because sometimes it varies. It really all depends on the company. I've been in a company where you had to spend $5 a week for a meeting plus $10 every other month for another meeting plus $300 4 times a year for another meeting... plus all of the recruiting tools. The company I'm in now doesn't have all that. You just buy a qualifying order on autoship each month and the only other expenses after that that I've had are an occasional training phone call (long distance) and mailing samples to people. So you can see how those costs will differ.


    Quote Originally Posted by wazzaa
    How many people join, stay or make money. They are very happy to show you the one guy and his 200k check.

    If any company did this after Enron they would all (the directors)end up in jail.
    I also don't think it's fair for a company to have to say how many people join, stay, and make money... because it's impossible to get an accurate number. I feel that some people should just not be counted in that number. I've seen people come through MLM companies who sign up one day.. and are never to be heard from again. Did they join? yes... did they stay? No... did they make money? no... Is that the company's fault? Absolutely not. Should that be held against the company? Nope!

    but it would be nearly impossible or at least way too time-consuming to separate these people from those who are actually doing something. There's too many factors. That's why I hate that old "95% failure rate" argument.


    Quote Originally Posted by wazzaa
    And when was the last time you found a MLM site that mentions Tax liability in the marketing spiel.

    I just can't see how I can do “business” (not that I would call it that) with people that deliberately don't disclose all the facts.

    This does not mean you cant make money from a mlm...just that you cant do it and expect to go to heaven or paradise which ever you happen to believe lol
    I know very little about taxes or tax liability so I really can't comment on that. I just keep track of my expenses, punch them into TurboTax, print out the form, and send it to the IRS. That's about all I know about taxes.. haha.

    EDIT: I answered your question in the tax thread you made with what little knowledge I DO have about MLM and taxes.

    I also agree that the facts should be disclosed.. especially the important ones. I don't like it when people diliberately leave things out. Although I also think that's part of the prospect's job. A rep can't possibly tell a prospect EVERYTHING there is to know about a company.. that would take FOREVER. So it should be the rep's job to tell the basic and most important facts and to answer questions, and the prospect's job to do their due dilligence and to ask questions.

    Also... going to heaven has nothing to do with being in an MLM... but that's a topic for another forum.
    Last edited by April47; 04-29-2006 at 06:41 AM.
    I do not believe that MLM/Network Marketing is a bad business model. I believe it's the shady people in MLM that make it LOOK bad. As long as you work hard, run your business ethically, and work with ethical people, then MLM can help you reach your financial goals... whether it's just to make extra money on the side or a full-time income.

    "Never argue with an idiot. They just drag you down to their level and beat you with years of experience."

    Pink Zebra Sprinkles

  17. #16
    Join Date
    Apr 2006
    Posts
    224

    Re: MLM: A Word On Our Industry

    Wazzaa,

    I will try my best to answer your questions about your response. With all due respect, there are parts that aren't too clear to me. If any of your points/questions go unanswered let me know, and I will answer them.

    YOUR POINTS ARE IN THE BASIC FONT. MY REPLIES ARE IN THE BOLD FONT

    You said: 3.) The Compensation Plan


    This where the scam part comes in, if you were just selling a product fine and good but your not. You need people under you to make money and you sell them the idea of making money but this is then a pyramid and is then mathematically doomed to fail. Ok sure the top guys make lot, but the last few levels to join get screwed and the need for such complex matrix’s with all the bonuses this and diamond that stuff the only purpose I see that, that has is to hid facts in smoke and mirrors as they say. talk about getting bogged down in the detail.


    While I do agree with you that there are many unethical companies out there that do fall under the category of a scam, there are others that have good compensation plans. However, the compensation plan is generally NOT where the scam comes in. The scam usually takes place where there is NO PRODUCT or NO SERVICE being distributed by the company to the consumer. Sure, there are plenty of compensation plans out there that plain SUCK. Sure, there are compensation plans out there that are stacked AGAINST the representatives of the company. But we also have to realize that legally a crappy compensation plan does not make it a scam. So, while I do agree with you that there are SOME scams out there (by no means all companies are a scam), I have to DISAGREE with you that the scam is in the compensation plan. The scam is when there is a transfer of money amongst the company and reps with NO PRODUCT/SERVICE being distributed.

    Also, just because you build a team beneath you does NOT make it a scam. This is where the term "Multi-Level Marketing" comes in. The product/service is being distributed by Multi-Levels of marketers. It is exactly what it is. No by no means am I saying corporate America and MLM's infrastructures are exactly the same. But, the structure of positions can be compared to one another. Think about this for a second. Bill Gates (yes I do use him as an example a good amount---simply because he is the CEO of a very successful company) is at the very "TOP" of his company. He is the big man---the CEO. Underneath Bill are a few VP's that I am sure he has micro-manage different aspects of his company if you will. Beneath his VP's he has RVP's that manage Regions, beneath his RVP's he has AM's which are Area Managers to deal with his company on a local/smaller scale, underneath his AM's are his front line workers. The sales persons who pushes his product to make sure it goes from the store shelves to the hands of the consumer. (Keep in mind that I may have gotten some of the "titles" wrong, however, it was more to make the point of how a company is structured). Now let me ask you this. If ALL of MICROSOFT was only BILL GATES would his product be reaching the hands of hundreds of millions of people? NO. You need a team in place period. It's called leverage. Any successful person knows that with momentum you create leverage which CAN POSSIBLY create wealth. It is humanly impossible to work beyond 24 hours a day. Would I rather have 24 hours of production in a day by MYSELF (24 hours is impossible as well) or would I rather have 10 team members below me that would give me a total of 240 possible hours worked in a day? Every large business has a similiar structure. Respectivly, I don't agree with your point at all.

    You said: All of the guys at the top make the money.

    Isin't this how it is pretty much in any company? Those who go beyond the norm are usually the ones that see the most success. Now, THERE ARE TIMES IN THIS INDUSTRY where companies GRANDFATHER new reps in from other companies who are bringing a large downline with them. I DO NOT BELIEVE IN THIS WHAT SO EVER. Everyone should start at the same position and be given the same chance.


    You said: The other big problem I see is the so few are will to so the real numbers on the web sits.


    I don't know if I fully understand what you are saying here. Let me give it a shot though. I believe you are saying that some companies don't show all of their numbers in the comp plan on their websites? If so, THEY SHOULD BE SHOWING EVERY NUMBER. Most that I have seen do. As a matter of fact, your not allowed to hold back any of that information on paper. During presentations...sure. It happens all of the time during regular presentations. But as far as the compensation plans on websites, I don't know if I have ever come across a LEGAL company that withholds this information.

    You said: How many people join, stay or make money. They are very happy to show you the one guy and his 200k check.


    How many people join, stay, or make money? I couldn't tell you these numbers. Nor would I ever spend too much time looking at those numbers. It is no secret that 97 pecent of the money is made by 3 percent of the reps. But again, that's how it is in the sales industry. VERY HIGH TURN OVER RATE. Some people don't like sales period. But the simple fact that there is a high turn over rate doesn't have anything to do with it being a scam. There is no legitimate back up on this statement.

    Of course they are happy to show you a 200k check. Many companies make the mistake of check flashing. I don't agree with it, but that's not my decision it's the companies. However, I would be damn proud if I made a 200k check. Chances are if your income is that high YOU HAVE A VERY LARGE ORGANIZATION in place under you. If you scored 82 points in a basketball game like Kobe Bryant would you talk about it? Heck yeah. Check flashing shouldn't be allowed, in the end it doesn't keep an individual motivated. From what I have seen, reps do this simply to close someone in the business which makes no sense to me.


    You said: I just can't see how I can do “business” (not that I would call it that) with people that deliberately don't disclose all the facts.


    I couldn't see myself doing business with a person who didn't disclose all of the facts to me as well. However, if I did...then I have to live with it. Noone is putting a gun to your head or my head to join a company. In the end it all comes down to one thing---your decision.


    I hope this clears it up! If there is anything I missed please let me know.
    Last edited by PowerOfCards; 04-29-2006 at 06:37 AM.
    FYL's response to ACNs revenue their 5th year in business:

    Originally Posted by freeyourlife
    ACN did in the 100's of millions.

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