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  1. #1
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    Another MLM myth

    Two myths actually.....

    Some people believe that the only way a MLM company can be successful is by continually signing up people.
    In fact, the phrase I saw was: ''With MLM, the only way for everyone to make money is to continually grow.''

    This is plainly wrong...firstly in a genuine MLM, not everyone wants to make money, believe it or not! A genuine MLM has customers who are only interested in buying the products. A genuine MLM must have people at all levels, from the top pin levels earning big money, down to the part timers, and then down to the customers who have no interest in earning money.
    A pyramid scheme on the other hand, has noone interested in being a customer, because the products, if there are any, are worthless.

    Again, a simple case of confusing a MLM with a pyramid.

    The second myth is that there must be a huge amount of people losing money for others to be successful.
    Wrong again...thats not to say there wont be losers. All business is a risk, thankfully with a genuine MLM its a small risk.
    If I build a business with say 100 customers who buy my product because they want to then I am making money, and noone is losing.

    Notice the common theme in both myths....customers. Doesnt matter if they are customers paying full retail, or if they join the network to get a discount, as long as they believe they are receiving value for their buck, then they cannot be considered ''losing money''.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  2. #2
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    Re: Another MLM myth

    not worth starting a thread over. please remove.

  3. #3
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    Re: Another MLM myth

    Quote Originally Posted by Owninator View Post
    not worth starting a thread over. please remove.

    Sorry Taterman...I need to ask you again.

    Just how old are you?
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  4. #4
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    Re: Another MLM myth

    chris does this when hes upset will, he starts useless threads trying to justify the fact that mlm is a scam and borderline criminal.

    he us not seeking dialogue, he is seeking valudation for his poorly chosen path in
    life. he wants to legitamize a unethical, dirty, scammy industry that is made up of theives and conmen.

    at least he is, even subconsciousely aware of this.

    its just my opinion the thread is useless. but whatever.

  5. #5
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    Re: Another MLM myth

    Quote Originally Posted by ChrisDoyle View Post
    Two myths actually.....

    Some people believe that the only way a MLM company can be successful is by continually signing up people.
    In fact, the phrase I saw was: ''With MLM, the only way for everyone to make money is to continually grow.''

    This is plainly wrong...firstly in a genuine MLM, not everyone wants to make money, believe it or not! A genuine MLM has customers who are only interested in buying the products.
    that is your definition of a genuine MLM. If a business is using the MLM model, it's MLM. Period. So you don't get to automatically exclude the magic wand companies. Those are MLMs.
    A genuine MLM must have people at all levels, from the top pin levels earning big money, down to the part timers, and then down to the customers who have no interest in earning money.
    You are again blurring the customer line. While

    A pyramid scheme on the other hand, has noone interested in being a customer, because the products, if there are any, are worthless.
    Pyramid schemes are not the issue. MLM's have large cumulative losses at the bottom.
    Again, a simple case of confusing a MLM with a pyramid.
    no, just your spin of something you don't want to admit.
    The second myth is that there must be a huge amount of people losing money for others to be successful.
    Wrong again...thats not to say there wont be losers. All business is a risk, thankfully with a genuine MLM its a small risk.
    it's a large risk when you look at the bottom rungs as a whole. You look at things individually because all you care about is you. You don't care if you screw people as long as you make money. But some people understand it's bad if you have a big earner with many many many losers. the net gain to society can be negative.
    If I build a business with say 100 customers who buy my product because they want to then I am making money, and noone is losing.
    if the price of the product to those 100 customers (more often down line distributors) is inflated to support the pyramid structure, them, yes, those 100 are losing. Let's see, MLM products, almost always way more expensive to obscenely more expensive (without the added quality, or sometimes, any value whatsoever).
    [quote]Notice the common theme in both myths....customers.[quote]Most MLMers are distributors when the definition suits you, or customers when the argument suits you.
    Doesnt matter if they are customers paying full retail, or if they join the network to get a discount, as long as they believe they are receiving value for their buck, then they cannot be considered ''losing money''.
    if they join so that they can get their overpriced product "free" by getting a little downline, as is so often preached by MLMers, then yes, most MUST be losing.

    Len's own data: ~90% of people were looking to replace their full time income.
    I'm not selling anything, so I don't need links in my signature to for-profit ventures. You really should question the intentions of those here that have them, as they are generally advertising, not informing.

  6. #6
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    Re: Another MLM myth

    Quote Originally Posted by ChrisDoyle View Post
    In fact, the phrase I saw was: ''With MLM, the only way for everyone to make money is to continually grow.''
    Since you are calling the customer "inside" the network, a customer that only buys, by definition, loses money (they have less money than before they started). The ONLY way for them to make money is to sell. The only way for their customer to make money....is to sell. But the real world answer is your customer is external. So then we get back to at least 45% of SOC distributor's *grossed* $9.30.

    The way to make money in MLM is to get people under you, which requires continual growth.
    I'm not selling anything, so I don't need links in my signature to for-profit ventures. You really should question the intentions of those here that have them, as they are generally advertising, not informing.

  7. #7
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    Re: Another MLM myth

    Quote Originally Posted by iamwil View Post
    there are no bottom rungs..there are only folks who haven't actually built an organization. Every one of us starts on the bottom and is one of your statistics...until we aren't.
    yep, everyone is losing (paying money to play) until they GROW their business. Those that they recruit, lose money, until they GROW their business. Again, in order for everyone to prosper, you have to keep growing. Real business, everyone can prosper without growth once they build he business.
    the price of all products are 'inflated' to cover the cost of production, distribution, sales, insurance and profit...
    agreed, but MLM seems to be almost always inflated ON TOP of the normal inflation. Amazing how that works in the real world.
    They are customers if they aren't building a business...but think they might...all the rest of us are both...customers and distributors...to various degrees.
    I am not a distributor of anything other than my job (that "just over broke" thing that yields me thousands of times more than most mlmers see).
    Some of us just make enough to get the products at a discount or for free.
    if everyone did *just* that (most want more), you have to have infinite growth as those you bring in would need to do the same.
    I'm not selling anything, so I don't need links in my signature to for-profit ventures. You really should question the intentions of those here that have them, as they are generally advertising, not informing.

  8. #8
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    Re: Another MLM myth

    Quote Originally Posted by iamwil View Post
    Customers are not external...in the physical world they come into your store to purchase.
    customers are external. you do not pay them, they aren't employees, independent contractors, etc. they are not supplying you with any parts, services, etc.

    they are external. they are vital to your business, but they are external.

    please understand simple business before you try to inform someone about business. scratch that, please understand anything before you try to inform someone about anything.
    I'm not selling anything, so I don't need links in my signature to for-profit ventures. You really should question the intentions of those here that have them, as they are generally advertising, not informing.

  9. #9
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    Re: Another MLM myth

    Quote Originally Posted by calvinandhobbes View Post
    that is your definition of a genuine MLM. If a business is using the MLM model, it's MLM. Period. So you don't get to automatically exclude the magic wand companies. Those are MLMs.You are again blurring the customer line. While
    MLM is a description of a compensation plan. If a company pays out bonuses on legitimate product sales to distributors on multiple levels, its MLM. If there is no legitimate product being sold to people who want the product, then its a pyramid scheme masquerading as a MLM.

    Pyramid schemes are not the issue. MLM's have large cumulative losses at the bottom.no, just your spin of something you don't want to admit.it's a large risk when you look at the bottom rungs as a whole. You look at things individually because all you care about is you. You don't care if you screw people as long as you make money. But some people understand it's bad if you have a big earner with many many many losers.
    First of all you need to look at this word ''loser''. If a person is on the ''bottom'' as you call it, and is buying product that he loves every month, but hasnt sponsored anyone so isnt earning a cheque.....is he a loser? Remember, I've just said that he is buying product that he wants. When you go and buy groceries, or a suit, or a shirt that you want, do you consider that you are losing your money cal? Or do you consider that, hopefully, you have gotten some value for your money?


    the net gain to society can be negative.if the price of the product to those 100 customers (more often down line distributors) is inflated to support the pyramid structure, them, yes, those 100 are losing.
    Agreed. Thats where we come back to the point of having good products that people (not everyone) want. If the products are worthless and noone wants them, only to make a cheque, we are probably looking at a pyramid masquerading as a mlm.


    Let's see, MLM products, almost always way more expensive to obscenely more expensive (without the added quality, or sometimes, any value whatsoever).
    In your opinion, and your quite entitled to it of course. Just recognise that others have a different opinion.



    Most MLMers are distributors when the definition suits you, or customers when the argument suits you.
    I'll try to make myself clearer then.
    A distributor is someone who joins the company to distribute products, by selling them and by building a downline.
    A customer is someone who is only interested in using the products, but could still join the network to buy his products at wholesale price and save money. A bit like joining Costco to save money (they joined Costco but are not part of the business)

    if they join so that they can get their overpriced product "free" by getting a little downline, as is so often preached by MLMers, then yes, most MUST be losing.
    But those couple of people they signed up may not consider themselves to be ''losing money''. They may want the products because they love them. I'll ask you again cal, when you buy things from the shops, do you consider you have ''lost money'', or do you believe that you received value for your money?

    Len's own data: ~90% of people were looking to replace their full time income.
    That may very well be true when they first join a company... but often when they find out they have to do something, they give up before they start. Many however, find that they love the products, and carry on using them for years....these people will be included in your statistics of being ''losers'' when they are in fact, nothing of the sort.... they are receiving value for their money.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  10. #10
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    Re: Another MLM myth

    Quote Originally Posted by calvinandhobbes View Post
    Since you are calling the customer "inside" the network, a customer that only buys, by definition, loses money (they have less money than before they started). The ONLY way for them to make money is to sell. The only way for their customer to make money....is to sell. But the real world answer is your customer is external. So then we get back to at least 45% of SOC distributor's *grossed* $9.30.

    The way to make money in MLM is to get people under you, which requires continual growth.
    In your little world, every customer in the world for every product in the world is losing money, because when you buy something you end up with less money!

    But people are happy to end up with less money when they buy something because they hopefully end exchanging that money for something of at least equal value.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  11. #11
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    Re: Another MLM myth

    Quote Originally Posted by ChrisDoyle View Post
    MLM is a description of a compensation plan. If a company pays out bonuses on legitimate product sales to distributors on multiple levels, its MLM. If there is no legitimate product being sold to people who want the product, then its a pyramid scheme masquerading as a MLM.
    a brick and mortar store selling the scammy amega wand is a brick and mortar store. an mlm selling the scammy amega wand is an mlm. Period. you can try to separate the two all you want, but it doesn't make it appropriate, espeically when there is so much crap in MLM out there. when you can admit that, we can go further. but we all know you won't.

    you are doing the equivalent of saying no banks failed because a bank is a legitmate lending institution that makes sound loans. all those that failed were just masquerading as banks. no, they were banks, just really bad ones. the amega wand MLM is an MLM, despite not having a legitimate product.
    I'm not selling anything, so I don't need links in my signature to for-profit ventures. You really should question the intentions of those here that have them, as they are generally advertising, not informing.

  12. #12
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    Re: Another MLM myth

    Quote Originally Posted by calvinandhobbes View Post
    a brick and mortar store selling the scammy amega wand is a brick and mortar store. an mlm selling the scammy amega wand is an mlm. Period. you can try to separate the two all you want, but it doesn't make it appropriate, espeically when there is so much crap in MLM out there. when you can admit that, we can go further. but we all know you won't.

    you are doing the equivalent of saying no banks failed because a bank is a legitmate lending institution that makes sound loans. all those that failed were just masquerading as banks. no, they were banks, just really bad ones. the amega wand MLM is an MLM, despite not having a legitimate product.
    If noone wants the Amega Wand because they dont see a value in the product, and the only people who ever buy it are those that do it to qualify for a bonus cheque, then that company will be deemed to be a pyramid scheme masquerading as a MLM company.
    Its about the motives of why people are buying the product (the wand)

    Motive 1. This product is rubbish, I'm only buying it to qualify for my bonus cheque. Bad

    Motive 2. This product is great... I'm going to give up on the business, its not for me...but I'll carry on buying the product every month because its great. And by staying as a distributor, I'll save 30% on the retail price. Good.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  13. #13
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    Re: Another MLM myth

    Quote Originally Posted by ChrisDoyle View Post
    If noone wants the Amega Wand because they dont see a value in the product, and the only people who ever buy it are those that do it to qualify for a bonus cheque, then that company will be deemed to be a pyramid scheme masquerading as a MLM company.
    Its about the motives of why people are buying the product (the wand)

    Motive 1. This product is rubbish, I'm only buying it to qualify for my bonus cheque. Bad

    Motive 2. This product is great... I'm going to give up on the business, its not for me...but I'll carry on buying the product every month because its great. And by staying as a distributor, I'll save 30% on the retail price. Good.
    Meh, referring to your second motive, I don't see why anyone would buy monthly Amega Wands, unless there's some sort of automatic shipping thing where you ahve to meet a quota. I think that would be a problem with a company selling a non-perishable item like an Amega Wand in an MLM world as a distributor, no?

    Unless of course, zero-point ****** has a shelf life?

    I'm just using the Amega Wand as an example, please don't misconstrue that I'm lebleing this as MLM altogether.
    I'm baaAAaaack

  14. #14
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    Re: Another MLM myth

    Quote Originally Posted by Porkchop Express View Post
    Meh, referring to your second motive, I don't see why anyone would buy monthly Amega Wands, unless there's some sort of automatic shipping thing where you ahve to meet a quota. I think that would be a problem with a company selling a non-perishable item like an Amega Wand in an MLM world as a distributor, no?

    Unless of course, zero-point ****** has a shelf life?

    I'm just using the Amega Wand as an example, please don't misconstrue that I'm lebleing this as MLM altogether.
    I would also have a problem being involved with a non-consumable product.

    The main reason I'm involved with a nutritional company, apart from believing strongly in good nutrition, is that its consumable. Find a customer who loves your product, and hopefully they'll order the product every month for life, as against having to find new customers every month for the rest of your life.

    We may have found something we agree on!
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  15. #15
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    Re: Another MLM myth

    this does seem to be an answer to a question nobody asked.

  16. #16
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    Re: Another MLM myth

    Quote Originally Posted by iamwil View Post
    no, that would be your racist political threads...2 funny.

    But if you were following any of these threads you'd know this is a discussion from another thread that the OP decided not to derail but start new here...
    it's a discussion from another forum at another website that OP thought he'd put here, even though there are countless threads here existing already, most started by OP himself. he's consistent. consistently wrong, but consistent nonetheless.
    I'm not selling anything, so I don't need links in my signature to for-profit ventures. You really should question the intentions of those here that have them, as they are generally advertising, not informing.

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