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  1. #1
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    Are MLMer's "Business" Owners?

    One of the things used to pitch MLM is that idea that you now become a business owner. At least most MLMer's think they are business owners. In many cases they are not. In many MLM's, you have paid a start up fee to become a commissioned salesperson.

    If you think about it, what is your MLM business worth? You likely don't have much inventory. You don't own your downline. You simply own the rights to bundle your downline's volume with your own, to leverage a bigger bonus. However, with many IBO's doing little or nothing and quitting. that leverage is shaky at best.

    For this reason, I have seen and hear of bigshot MLMer's quitting, which suggests to me that residual income is just a myth. In my opinion, most MLMer's are just salespeople with no guaranteed income.

  2. #2
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    Re: Are MLMer's "Business" Owners?

    Quote Originally Posted by Joecool44 View Post
    One of the things used to pitch MLM is that idea that you now become a business owner. At least most MLMer's think they are business owners. In many cases they are not. In many MLM's, you have paid a start up fee to become a commissioned salesperson.

    If you think about it, what is your MLM business worth? You likely don't have much inventory. You don't own your downline. You simply own the rights to bundle your downline's volume with your own, to leverage a bigger bonus. However, with many IBO's doing little or nothing and quitting. that leverage is shaky at best.

    For this reason, I have seen and hear of bigshot MLMer's quitting, which suggests to me that residual income is just a myth. In my opinion, most MLMer's are just salespeople with no guaranteed income.
    Are they business owners?


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

  3. #3
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    Re: Are MLMer's "Business" Owners?

    Is a girl scout a business owner? Well why not. She pays to join the scouts, which then gives her the "opportunity" to sell cookies through the organization and receive a percentage based on her sales. If her "troop" has more salespeople, they'll generate more profits. If anything goes wrong, it's the individual girl scout's problem, not the whole organization. All the organization does is provide the product and a recommended selling method. No individual girlscout has stake in the company nor are they anything but an independent salesperson for the company.

    It's pretty clear that girlscouts have all the same things going for them (or against them) that MLMrs do. So this weekend when I was asked by a 12 y/o if I wanted to buy some Tagalongs, this was apparently a "business owner" I was talking to. To me, I just thought it was a little kid selling overpriced cookies, but to Doyle this was a legitimate business woman.

    I guess my opinion is that if a 7 y/o can do it, then it's not a business. Btw, didn't you sign your kids up in your MLM Doyle? I know they probably didn't know you did it, but at least they count towards your number of "reps" in your downline, right? (Sadly, I'm not joking with that question.)
    There is not one woman on this planet capable of finishing an entire can of soda.

  4. #4
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    Re: Are MLMer's "Business" Owners?

    Quote Originally Posted by needs2stop View Post
    Is a girl scout a business owner? Well why not. She pays to join the scouts, which then gives her the "opportunity" to sell cookies through the organization and receive a percentage based on her sales. If her "troop" has more salespeople, they'll generate more profits. If anything goes wrong, it's the individual girl scout's problem, not the whole organization. All the organization does is provide the product and a recommended selling method. No individual girlscout has stake in the company nor are they anything but an independent salesperson for the company.

    It's pretty clear that girlscouts have all the same things going for them (or against them) that MLMrs do. So this weekend when I was asked by a 12 y/o if I wanted to buy some Tagalongs, this was apparently a "business owner" I was talking to. To me, I just thought it was a little kid selling overpriced cookies, but to Doyle this was a legitimate business woman.

    I guess my opinion is that if a 7 y/o can do it, then it's not a business. Btw, didn't you sign your kids up in your MLM Doyle? I know they probably didn't know you did it, but at least they count towards your number of "reps" in your downline, right? (Sadly, I'm not joking with that question.)

    My son joined my downline, he's grown up, not a kid and he's doing very well with it, earning very good money and still only in his twenties. Great business MLM.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  5. #5
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    Re: Are MLMer's "Business" Owners?

    Quote Originally Posted by needs2stop View Post
    Is a girl scout a business owner? Well why not. She pays to join the scouts, which then gives her the "opportunity" to sell cookies through the organization and receive a percentage based on her sales. If her "troop" has more salespeople, they'll generate more profits. If anything goes wrong, it's the individual girl scout's problem, not the whole organization. All the organization does is provide the product and a recommended selling method. No individual girlscout has stake in the company nor are they anything but an independent salesperson for the company.

    It's pretty clear that girlscouts have all the same things going for them (or against them) that MLMrs do. So this weekend when I was asked by a 12 y/o if I wanted to buy some Tagalongs, this was apparently a "business owner" I was talking to. To me, I just thought it was a little kid selling overpriced cookies, but to Doyle this was a legitimate business woman.

    I guess my opinion is that if a 7 y/o can do it, then it's not a business. Btw, didn't you sign your kids up in your MLM Doyle? I know they probably didn't know you did it, but at least they count towards your number of "reps" in your downline, right? (Sadly, I'm not joking with that question.)
    Don't forget the neighborhood lemonade stand, which by the way, is more profitable than most MLMer's.

  6. #6
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    Re: Are MLMer's "Business" Owners?

    Quote Originally Posted by Joecool44 View Post
    Don't forget the neighborhood lemonade stand, which by the way, is more profitable than most MLMer's.
    Only in your world, but not in the real one.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  7. #7
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    Re: Are MLMer's "Business" Owners?

    Pretty ironic. I just got a response from the Florida Attorney General for a complaint I filed and amongst the links they sent were these, which I do believe is quite relevant to your topic:

    http://www.800helpfla.com/bizop.html

    http://www.ftc.gov/bcp/menus/consume.../business.shtm

  8. #8
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    Re: Are MLMer's "Business" Owners?

    Quote Originally Posted by Joecool44 View Post
    Don't forget the neighborhood lemonade stand, which by the way, is more profitable than most MLMer's.
    I would say that a lemonade stand is more of a business than MLM. The reason is because most kids that sell lemonade make a profit.
    There is not one woman on this planet capable of finishing an entire can of soda.

  9. #9
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    Re: Are MLMer's "Business" Owners?

    It really just semantics. For example:

    Jim is a decorated associate of one of the largest corporations here in America.

    Translation:

    "Attention all Wal-Mart associates, clean up on aisle nine."

    Jim also won top janitor for last month, got to walk across the aisle with his new pin, err pan.

    Wal-mart has chosen to call their employees "associates" which used to have a different implied meaning.

    MLM "business owner" translation:

    A person prepared to pay the company for the privilege to become a customer AND find the company other customers all for free on their time. Not only that, they are willing to convince people to pay a higher than average price so they can get a little kickback. Poor mom.
    Last edited by char; 02-29-2012 at 07:25 AM.
    If MLM is such a wonderful business model, why aren't you still doing Amway?

  10. #10
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    Re: Are MLMer's "Business" Owners?

    Quote Originally Posted by char View Post
    It really just semantics. For example:

    Jim is a decorated associate of one of the largest corporations here in America.

    Translation:

    "Attention all Wal-Mart associates, clean up on aisle nine."

    Jim also won top janitor for last month, got to walk across the aisle with his new pin, err pan.

    Wal-mart has chosen to call their employees "associates" which used to have a different implied meaning.

    MLM "business owner" translation:

    A person prepared to pay the company for the privilege to become a customer AND find the company other customers all for free on their time. Not only that, they are willing to convince people to pay a higher than average price so they can get a little kickback. Poor mom.

    MLM'ers are ''Independent Contractors''

    The name ''business owner'' isn't particularly important to me, being self-employed and having no boss is though.
    "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: Are MLMer's "Business" Owners?

    Quote Originally Posted by ChrisDoyle View Post
    MLM'ers are ''Independent Contractors''

    The name ''business owner'' isn't particularly important to me, being self-employed and having no boss is though.
    Definition of "Business" by wikipedia:

    http://en.wikipedia.org/wiki/Business

    "Basic forms of ownership
    See also: Types of business entity
    Although forms of business ownership vary by jurisdiction, there are several common forms:
    Which one of the above is a MLM distributorship?
    MLM's Mission Statement:

    "The primary product is opportunity. The strongest, most powerful motivational force today is false hope."

    "Almost everyone is not going to learn the skills and use them consistently over time, you would be better off joining Costco" -Dank111

  12. #12
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    Re: Are MLMer's "Business" Owners?

    Also, since we're told that an MLM distributorship is a business, and the IBO is a business owner, what are the different ways one can incorporate this business?
    MLM's Mission Statement:

    "The primary product is opportunity. The strongest, most powerful motivational force today is false hope."

    "Almost everyone is not going to learn the skills and use them consistently over time, you would be better off joining Costco" -Dank111

  13. #13
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    Re: Are MLMer's "Business" Owners?

    Quote Originally Posted by char View Post
    MLM "business owner" translation:

    A person prepared to pay the company for the privilege to become a customer AND find the company other customers all for free on their time. Not only that, they are willing to convince people to pay a higher than average price so they can get a little kickback. Poor mom.
    That's the cold, hard truth. The sooner the IBO realizes this truth, the sooner they can take an objective look at the "business" and realize the true risks and opportunity cost (what you could have been doing otherwise with your time and money) involved.
    MLM's Mission Statement:

    "The primary product is opportunity. The strongest, most powerful motivational force today is false hope."

    "Almost everyone is not going to learn the skills and use them consistently over time, you would be better off joining Costco" -Dank111

  14. #14
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    Re: Are MLMer's "Business" Owners?

    Quote Originally Posted by BoxAlarm126 View Post
    Definition of "Business" by wikipedia:

    http://en.wikipedia.org/wiki/Business

    "Basic forms of ownership
    See also: Types of business entity
    Although forms of business ownership vary by jurisdiction, there are several common forms:
    Which one of the above is a MLM distributorship?

    In my case a sole proprietorship.
    "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: Are MLMer's "Business" Owners?

    Quote Originally Posted by BoxAlarm126 View Post
    Also, since we're told that an MLM distributorship is a business, and the IBO is a business owner, what are the different ways one can incorporate this business?
    I can only speak for the UK. My business can be a Limited Company if I wish.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

  16. #16
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    Re: Are MLMer's "Business" Owners?

    Quote Originally Posted by BoxAlarm126 View Post
    That's the cold, hard truth. The sooner the IBO realizes this truth, the sooner they can take an objective look at the "business" and realize the true risks and opportunity cost (what you could have been doing otherwise with your time and money) involved.
    A person prepared to pay the company for the privilege to become a customer AND find the company other customers all for free on their time.
    The company pays US for finding other customers, we don't do it for free. You guys still don't understand the basics.
    "People are not interested in your product or your business; they are interested in solving their own problems." -- James Dillehay, Entrepreneur and Author

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