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  1. #1
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    Myths and Facts about Direct Selling/MLM.

    Myths and facts from the Direct Selling Association.

    Myth 1: 99.9% of direct sellers lose money; people are afraid to drop out for fear of looking like a failure

    Truth: More than half of direct sellers report that their net income from direct selling, after taxes and expenses, is positive. In addition, a positive net income is reported by nearly half of new direct sellers — those representing their current company for less than a year — and by nearly half of direct sellers who say that they are not very likely or not at all likely to continue in direct selling in the future.In addition, research shows the following:

    four in five (82%) direct sellers have been with their current direct selling company for one year or more, and 47% for five years or more.

    89% of direct sellers rate their personal experience in direct selling as excellent, very good, or good.

    84% of direct sellers say that direct selling meets or exceeds their expectations as a good way to supplement their income or as a way to make a little extra money for themselves.

    91% of direct sellers say that direct selling meets or exceeds their expectations as a business where the harder they work the more money they can make.
    (Source: 2002 National Salesforce Survey, Research International, Inc.)

    This myth is also quite interesting because it essentially asserts that 15.6 million people in the US and 92 million people around the world continue as direct sellers despite losing money. Are we to believe the 5% of the US population would continue in a business where they are losing money? Simply put, most people do not lose money in direct selling. Neither the facts nor common sense supports that theory. Further, anyone who gets involved with a legitimate direct selling company should not risk financial loss by doing so. The Direct Selling Association’s Code of Ethics, for example, is designed to protect direct sellers and their customers. Inventory buybacks (which include sales aids) and other provisions allow sellers recourse if there’s an issue with the company – no one should lose money in direct selling, nor should anyone feel like a failure if it doesn’t work out for them.
    "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: Myths and Facts about Direct Selling/MLM.

    Quote Originally Posted by ChrisDoyle View Post
    Myths and facts from the Direct Selling Association.

    Myth 1: 99.9% of direct sellers lose money; people are afraid to drop out for fear of looking like a failure

    .
    So they did a study of :"direct sellers." They all say they love it! I wonder what would happen if they did a study of people who enrolled in MLM and dropped out (which is most everybody who enrolls). I think the results would be different.

    By YOUR estimate, the sentence above would read "97% of direct sellers...." Really not much difference.

  3. #3
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    Re: Myths and Facts about Direct Selling/MLM.

    More information about MLM:

    Several sources have commented on the income level of specific MLMs or MLMs in general:

    The Times: "The Government investigation claims to have revealed that just 10% of Amway's agents in Britain make any profit, with less than one in ten selling a single item of the group's products."[29]

    Eric Scheibeler, a high level "Emerald" Amway member: "UK Justice Norris found in 2008 that out of an IBO [Independent Business Owners] population of 33,000, 'only about 90 made sufficient incomes to cover the costs of actively building their business.' That's a 99.7 percent loss rate for investors."[30]

    Newsweek: based on Mona Vie's own 2007 income disclosure statement "fewer than 1 percent qualified for commissions and of those, only 10 percent made more than $100 a week."[31]

    Business Students Focus on Ethics: "In the USA, the average annual income from MLM for 90% MLM members is no more than US $5,000, which is far from being a sufficient means of making a living (San Lian Life Weekly 1998)"[32]

    USA Today has had several articles:
    "While earning potential varies by company and sales ability, DSA says the median annual income for those in direct sales is $2,400."[33]

    In an October 15, 2010 article, it was stated that documents of a MLM called Fortune reveal that 30 percent of its representatives make no money and that 54 percent of the remaining 70 percent only make $93 a month. The article also states Fortune is under investigation by the Attorneys General of Texas, Kentucky, North Dakota, and North Carolina with Missouri, South Carolina, Illinois, and Florida following up complaints against the company.[34]
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  4. #4
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    Re: Myths and Facts about Direct Selling/MLM.

    Quote Originally Posted by Joecool44 View Post
    More information about MLM:
    Old news, pre court case...get with the times jokey, all your ''evidence'' is always years old.

  5. #5
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    Re: Myths and Facts about Direct Selling/MLM.

    Quote Originally Posted by ChrisDoyle View Post
    Old news, pre court case...get with the times jokey, all your ''evidence'' is always years old.
    You have yet to post any evidence that MLM actually works for more than a tiny percentage of people.
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  6. #6
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    Re: Myths and Facts about Direct Selling/MLM.

    Quote Originally Posted by Joecool44 View Post
    You have yet to post any evidence that MLM actually works for more than a tiny percentage of people.
    And you've yet to post evidence that it doesn't.

  7. #7
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    Re: Myths and Facts about Direct Selling/MLM.

    Quote Originally Posted by ChrisDoyle View Post
    And you've yet to post evidence that it doesn't.
    Don't need to. MLM companies who publish earnings disclosures do it for me.
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  8. #8
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    Re: Myths and Facts about Direct Selling/MLM.

    Quote Originally Posted by ChrisDoyle View Post
    Old news, pre court case...get with the times jokey, all your ''evidence'' is always years old.
    LOL it's like his bible facts!

  9. #9
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    Re: Myths and Facts about Direct Selling/MLM.

    Quote Originally Posted by Joecool44 View Post
    You have yet to post any evidence that MLM actually works for more than a tiny percentage of people.
    Maybe he has faith?

  10. #10
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    Re: Myths and Facts about Direct Selling/MLM.

    Quote Originally Posted by Joecool44 View Post
    Don't need to. MLM companies who publish earnings disclosures do it for me.
    Do you have any that show retail profits, wholesale customers, IBOs that do nothing. We've covered this many times before, but still you continue to mislead people.

  11. #11
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    Re: Myths and Facts about Direct Selling/MLM.

    Quote Originally Posted by tomInAustin View Post
    LOL it's like his bible facts!
    He believes in the Bible??!!

  12. #12
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    Re: Myths and Facts about Direct Selling/MLM.

    Quote Originally Posted by ChrisDoyle View Post
    Do you have any that show retail profits, wholesale customers, IBOs that do nothing. We've covered this many times before, but still you continue to mislead people.
    Sorry, that argument doesn't fly. MLM companies do not release that information, more than likely because it would paint a grim picture of what MLMers actually earn. You can bet if the numbers were glowing, they'd all publish them
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  13. #13
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    Re: Myths and Facts about Direct Selling/MLM.

    Quote Originally Posted by Joecool44 View Post
    Sorry, that argument doesn't fly. MLM companies do not release that information, more than likely because it would paint a grim picture of what MLMers actually earn. You can bet if the numbers were glowing, they'd all publish them
    They don't release that information...that's why your information is shite.

    To give you an example of what I'm talking about....this is a fairly new MLM called 31 Gifts.
    They've held 1 million parties, served 8 million customers and reported $740 million in sales.
    The majority of those sales will be retail and retail is rarely reported on an IDS.... but they're still there. http://www.dispatch.com/content/stor...onference.html

  14. #14
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    Re: Myths and Facts about Direct Selling/MLM.

    Quote Originally Posted by ChrisDoyle View Post
    They don't release that information...that's why your information is shite.

    To give you an example of what I'm talking about....this is a fairly new MLM called 31 Gifts.
    They've held 1 million parties, served 8 million customers and reported $740 million in sales.
    The majority of those sales will be retail and retail is rarely reported on an IDS.... but they're still there. http://www.dispatch.com/content/stor...onference.html
    Good. I've never said all MLMs refuse to sell. I'm well aware of certain MLM that retails more than recruiting. Pampered chef and Avon come to mind.

    But there are some well known MLMs where recruiting is the focus and it's quite obvious they operate that way.
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  15. #15
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    Re: Myths and Facts about Direct Selling/MLM.

    Quote Originally Posted by Joecool44 View Post
    Good. I've never said all MLMs refuse to sell. I'm well aware of certain MLM that retails more than recruiting. Pampered chef and Avon come to mind.

    But there are some well known MLMs where recruiting is the focus and it's quite obvious they operate that way.
    Then give us a link to the numbers instead of guessing......but you can't can you so you just guess.

  16. #16
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    Re: Myths and Facts about Direct Selling/MLM.

    Quote Originally Posted by ChrisDoyle View Post
    Then give us a link to the numbers instead of guessing......but you can't can you so you just guess.
    I gave you numbers. Some of them came because of law suits. I can't help it if you're in denial.
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

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