+ Reply to Thread
Page 1 of 6 123456 LastLast
Results 1 to 16 of 82

  1. #1
    Join Date
    Jul 2011
    Posts
    1,923

    Does your MLM have these potential elements?

    http://www.mlmlegal.com/statutes.html

    "In the leading decisions in this subject area, a variety of abuses have been targeted as potential elements of illegal marketing plans:"
    1. Products which have "no real world" marketplace.
    2. Products which are sold at inflated prices.
    3. Mandatory purchases of company product.
    4. Plans which result in inventory loading distributors.
    5. Substantial cash investment requirements.
    6. Mandatory purchases of peripheral or accessory products or services.
    7. Plans in which company products are totally or substantially consumed only ** distributors.
    8. Plans in which distributors are left with substantial unsold inventory upon cancellation of participation.
    9. Plans in which distributors purchase products in order to further the marketing plan rather than out of genuine desire and need for the product.
    10. Plans which would fail without purchases ** participants.
    11. Plans which make no effort to emphasize retail sales to the ultimate nonparticipant consumer.
    12. Plans which require no meaningful participation ** distributors after becoming a distributor.
    13. Plans in which fees are paid to distributors for headhunting.
    14. Plans in which commissions are not based on actual retail product sales.
    15. Plans in which emphasis is on recruitment rather than sale of product.
    16. Plans which contain elements of a lottery rewarding participants based on chance rather than on bona fide sales efforts.
    17. Earnings misrepresentations or inflated earnings representations.
    Does your MLM exhibit any traits pertaining to any of these "potential elements?" If so, what is the justification?

  2. #2
    Join Date
    Jan 2011
    Posts
    62

    Re: Does your MLM have these potential elements?

    I don't see a problem with people selling something and not purchasing it personally. What may be a good product fit for one person may not for another. The main reason companies get people on an autoship (no proof) is to pretty much to help people with sales and income not to also mention to push product through internal consumption. Give most people the choice and they won't buy the company products especially when they can go to CVS or Wal_Mart and get a similar product for less.

    When looking for any justification follow the money.

  3. #3
    Join Date
    Jul 2011
    Posts
    1,923

    Re: Does your MLM have these potential elements?

    Quote Originally Posted by Former Poster View Post
    I don't see a problem with people selling something and not purchasing it personally. What may be a good product fit for one person may not for another. The main reason companies get people on an autoship (no proof) is to pretty much to help people with sales and income not to also mention to push product through internal consumption. Give most people the choice and they won't buy the company products especially when they can go to CVS or Wal_Mart and get a similar product for less.

    When looking for any justification follow the money.
    To me, that's the inherent flaw with MLM's, that makes it prohibitively difficult in most cases to make any substantial income - the need to pay out on so many levels. I've come to the conclusion that this is why the vast majority of MLM products cannot be competitively priced for effective retail sales. You're at a serious disadvantage starting out in an MLM for this reason. To help make up for that, you have the ongoing fees and mandatory autoships.

    Efficient and lucrative e-commerce, in many cases, cut out unnecessary middlemen to lower costs and increase profit margins. MLM does exactly the opposite. That ruins any cost effectiveness that would be otherwise realized ** doing online marketing.

    The 90 some odd percent that fail in MLM would be much better served doing affiliate marketing for commissions, starting a blog on their site, participating in other related blogs and leaving their link at the bottom, creating intellectual property such as e-books, forming business relationships via reciprocal links, using google adsense for additional income, or even going to a place like Chinatown, Canal Street in NY, or any large flea market, taking pictures of products, getting wholesale pricing, selling it online, then "buying" the product, selling it at retail, while having the wholesaler ship the product. It's known as drop shipping, which is part of "reverse e-commerce," and that's what successful companies such as Amazon.com are doing.

    You would make out a whole lot better than in MLM. You can make a bundle in MLM, but that requires a multitude of factors to play out just right, which is highly unlikely to work out for you unless you're willing to use unethical and immoral methods to build your business.

    Edit: "The Internet is the most powerful agent of disintermediation in history"
    -Marc Ostrofsky, from his book "Get Rich Click"

    Disintermediation means to eliminate the middleman. This translates into lower prices and more efficient services, and companies get more sales as a result. Why would one expect the opposite to work with retail sales in MLM? This explains why autoships are a necessary evil in MLM; this creates sales where there would otherwise be very little, much to meager to support the network.
    Last edited by BoxAlarm126; 08-29-2011 at 07:29 AM.

  4. #4
    Join Date
    Jul 2011
    Posts
    1,923

    Re: Does your MLM have these potential elements?

    Quote Originally Posted by iamwil View Post
    Did I mention autoship is not required for our affiliates? Only a monthly purchase..

    and that 75% of our sales are to Customers who are not affiliates, not enrolled to get a check?

    and that more of my customers are on autoship then my affiliates?


    So....most of our products are sold to end users.

    We rely on our customers wanting our products over others despite the fact that they have no monetary incentive.

    As 75% of our revenue comes thru customers.

    Again, I don't want anyone as an affiliate that isn't using the products for themselves and their families. And any affiliate that is just buying the minimum to get a check....is the sign of an affiliate who will not be making much in the way of sales...
    Why is this a rarity? No wonder mostly everyone regards MLM's as poor business opportunities. And why are you basically one of the only pro MLM'ers that can provide intelligent posts?

  5. #5
    Join Date
    May 2010
    Posts
    4,636

    Re: Does your MLM have these potential elements?

    Quote Originally Posted by iamwil View Post
    This was the issue our company saw with the MLM model, the lack of customers. So we designed around it. Also the problem the average not salesman Joe had with aquiring customers, so we designed around that to...also we knew that not salesman Joe while he wanted to have a business wasn't the greatest at follow up so we designed around that to.
    Wait a second. You are an average affiliate of your cactus juice MLM scam who purchases customers yet, "This was the issue our company saw with the MLM model, the lack of customers. So we designed around it.".

    That statement says that you are one of the founders at the top of the scam. No wonder you post and lie about it so much.

  6. #6

    Re: Does your MLM have these potential elements?

    Quote Originally Posted by iamwil View Post
    Did I mention autoship is not required for our affiliates? Only a monthly purchase..
    While I understand they are technically different, as far as a company would be concerned, there wouldn't be much difference at all. Requiring you to buy $20 worth of their crap each month versus $20 of a particular order each month, both are effectively regular purchase requirements.
    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
    Join Date
    May 2010
    Posts
    4,636

    Re: Does your MLM have these potential elements?

    Quote Originally Posted by calvinandhobbes View Post
    I think a lot of people talk about the company they work for as "we." I know I certainly do, while my percentage ownership in the company would have a lot of leading zero's as a %.
    That is true, but you wouldn't say "we designed" unless you were in on the design yourself.

  8. #8
    James R's Avatar
    James R is offline I'm no crook...my upline told me to do it!
    Join Date
    May 2005
    Posts
    4,651

    Re: Does your MLM have these potential elements?

    Quote Originally Posted by iamwil View Post
    Item #3...

    Mandatory purchases of Company product...

    This is the only one that we have.

    It is common with most MLMs. I'm always amazed at the people that have issues with it.
    Too funny!!!

    Dude, put the straw down. You have been sipping on the MLM Koolaide too long....way too long.

    If you say pruchasing from your own store is common in MLM's, then you can't compare MLM's to a real business or franchise. It's that simple.

    Would you be surprised or if Ray Kroc never had a Happy Meal in his entire life? That's the logic you are using. It makes no sense.

    If you have a viable product that people want, they will buy it. You just have to know about the product....not how much your MLM autoship bill is at the end of the month.
    Excited about Nopalea Cactus Juice? Learn how to make your own for FREE!
    Don't be another "$50 a bottle" sucker....best of all you know exaclty what's in it. Click HERE.


    Here's a good one....
    "That's why I changed my 'story'".
    Where else can you find this nonsense besides here?

  9. #9
    Join Date
    Aug 2011
    Posts
    201

    Re: Does your MLM have these potential elements?

    Quote Originally Posted by Once Upon a Time View Post
    That is true, but you wouldn't say "we designed" unless you were in on the design yourself.
    You have issues with trying to figure out the true identity of posters don't you? How about just debating the points?

  10. #10
    Join Date
    Aug 2011
    Posts
    201

    Re: Does your MLM have these potential elements?

    Quote Originally Posted by James R View Post
    Too funny!!!

    Dude, put the straw down. You have been sipping on the MLM Koolaide too long....way too long.

    If you say pruchasing from your own store is common in MLM's, then you can't compare MLM's to a real business or franchise. It's that simple.

    Would you be surprised or if Ray Kroc never had a Happy Meal in his entire life? That's the logic you are using. It makes no sense.

    If you have a viable product that people want, they will buy it. You just have to know about the product....not how much your MLM autoship bill is at the end of the month.
    So it does not cost anything to purchase a McDonald's franchise? That is the logic you are using and it makes no sense. I should note my company does not require the purchase of any product, but he is talking $20.00 a month.

    Incidentally, what other mandatory fees are there Wil?

  11. #11

    Re: Does your MLM have these potential elements?

    Quote Originally Posted by Once Upon a Time View Post
    That is true, but you wouldn't say "we designed" unless you were in on the design yourself.
    People ask me all the time about why "we" do things on our products, including products I have nothing to do with. I respond "we do it that wway because...." I don't think it's unreasonable at all.
    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

    Re: Does your MLM have these potential elements?

    Quote Originally Posted by iamwil View Post
    Yes, and yes. It is much more convenient to have your lions share of consumers consuming because they want to, not to get a check.
    If they are just doing it to get a check, that's a pyramid scheme. So you think the majority of MLMs are true pyrammid schemes. I find that very interesting. Why do you argue in favor of pyramid schemes?
    Another issue with MLM which has been repeatedly pointed out here is the distributors who jump ship and take their team and hence a good portion of your commission with them.
    Yeah, don't tell the MLMers here that there is actually risk of their precious residual income disappearing. They seem to be under he impression that it's basically guearanteed for life.
    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.

  13. #13

    Re: Does your MLM have these potential elements?

    Quote Originally Posted by iamwil View Post
    I'm not a lawyer but I don't believe that is true. I believe the law has differentiated between a product based direct selling company that pays on a multi tiered basis and a pyramid scheme.
    merely adding a product does not get a company out of anti-pyramid laws. If a company greatly inflates the price of a product for the sole purpose of creating a payment chain, you have a pyramid. Straight from the FTC website:
    Some schemes may purport to sell a product, but they often simply use the product to hide their pyramid structure. There are two tell-tale signs that a product is simply being used to disguise a pyramid scheme: inventory loading and a lack of retail sales. Inventory loading occurs when a company's incentive program forces recruits to buy more products than they could ever sell, often at inflated prices. If this occurs throughout the company's distribution system, the people at the top of the pyramid reap substantial profits, even though little or no product moves to market. The people at the bottom make excessive payments for inventory that simply accumulates in their basements. A lack of retail sales is also a red flag that a pyramid exists. Many pyramid schemes will claim that their product is selling like hot cakes. However, on closer examination, the sales occur only between people inside the pyramid structure or to new recruits joining the structure, not to consumers out in the general public.
    A true lack of real customers is fundamentally problematic.
    Some do get great residuals...and it is for life. The life of their organization. So if you've got a great organization, you've got 3-5 leaders who are constantly building their business, you do have a fairly secure residual income.
    I would completely disagree that it is "fairly secure," especially for life. ACN makes their money off videophones (that aren't selling already), cell phones, satellite TV, etc. All heavily rapidly evo-lving industries. I wouldn't rely on residual income from that company as those business might be gone in 15 years, much less 30, etc. Plus there's the whole lack of diversification. I wouldn't place my long term bet on any single company. I have a pension from my company, but it is diversified, as are my investment accounts. The only thing I rely solely on my company for is my salary and my healthcare benefits (and health care will almost certainly be different in 30 years as well).

    I would consider MLM residual income rather insecure long term.
    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.

  14. #14
    Join Date
    May 2010
    Posts
    4,636

    Re: Does your MLM have these potential elements?

    Quote Originally Posted by iamwil View Post
    James I'm gonna mark it on the calendar when you make a sensible post that contributes to discussion of the topic on hand.
    I've been marking it on a calendar every time you have made a misdirecting, misleading, lying, or nonsensical post.

    My calendar is covered with X's.

  15. #15

    Re: Does your MLM have these potential elements?

    Quote Originally Posted by iamwil View Post
    So adding a product does make it not a pyramid,
    No, absolutely false. Merely having a product does nothing to get you out of anti-pyramid laws whatsoever. How on earth did you interpret the FTC writing I posted as saying otherwise?
    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.

  16. #16

    Re: Does your MLM have these potential elements?

    Quote Originally Posted by iamwil View Post
    Because I am the king of misinterpretation of others posts!

    If you have a multi level company with a product you are not a pyramid....UNLESS...you have all these myriad of qualifiers that make you a pyramid....or so I read.

    So, there is this pyramid scheme of money moving...and no product or service...if it has a product or service, ie people are getting a value for their money, then it is no longer a pyramid...simply adding the value, the product, the service fixes it.....BUT if you also are doing X, or Y or Z...then it may fall back into a pyramid regulation....am I wrong as usual??
    well, yes, as usual, you are wrong. You, yourself, actually disprove your own statement. Kudos. You original statement of "adding a product does make it not a pyramid" is wrong BECAUSE of all your ifs. A product is not value ** definition. An MLM structure with a value added product that is independent of the opportunity makes it not a pyramid.... but because it is VERY easy to add a product with no value relative to its price, simply adding a product isn't enough.

    and your "myraid of qualifiers" can be as short as one simple thing....a product with no value outside of the opportunity. wow, that's a long list....of one thing.

    and for the record, you didn't misinterpret my post. you misinterpreted the FTC's layman's description (ie, not actual wordy regulatory guidelines) of a pyramid scheme. pretty sad for an MLMer. but completely expected.
    Last edited by calvinandhobbes; 09-01-2011 at 07:15 PM.
    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.

Similar Threads

  1. Mecca Mecca Stamped Hoax - fury of the 4 elements series completed with water
    By TruthIsNeverTooHorrible in forum Religious Scams
    Replies: 4
    Last Post: 02-08-2016, 05:41 PM
  2. potential art scam
    By kor123 in forum MLM Scams
    Replies: 6
    Last Post: 11-01-2013, 09:26 AM
  3. Potential job asking for my credit score
    By stuckntexas in forum Work at Home Scams
    Replies: 5
    Last Post: 12-12-2009, 02:17 AM
  4. Potential problem with Obama presidency
    By Luka in forum Political Scams
    Replies: 9
    Last Post: 11-06-2008, 09:04 PM
  5. I know this is not a scam...I see real potential
    By Daniel Owens in forum Mail Order Scams
    Replies: 12
    Last Post: 07-19-2007, 07:48 PM

Tags for this Thread

Bookmarks

Bookmarks

Posting Permissions

  • You may post new threads
  • You may post replies
  • You may not post attachments
  • You may edit your posts
  •