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Multi level Marketing People

I bumped into a rather odd person at a networking meeting this morning who told me she could help other people earn part-time income. It all seemed rather vague so I immediately assumed something dodgy, particularly as the spiel she gave me was so slick and well prepared. I said "Do you mean multi-level marketing?" She didn't say yes and she didn't say no. I kept probing "What is being sold?" she told me it was a range of products used by "all of us". The idea would be that she would recruit people to do the selling for her and they would recruit people underneath them and so on. I commented that multi-level marketing had had a rather bad press from what I remembered. "Ah, but it's different now" she smartly replied.

Feeling exhausted I said that I still found it difficult to know exactly what her business was all about. If she was going to give a short presentation of her business to our group she would need to be clearer to ensure people understood. At that point she got quite annoyed with me and said she was very happy with her presentation thankyou very much.

Her actual presentation was a statement about anyone becoming wealthy with her help and to ask her later for more detail. (Best of luck, there, I thought!)

When someone else gave a presentation on goal setting and working out how much you wanted to earn in 5 years time and working towards that Ms MLM nodded significantly. I presume she is going to be charging other poor souls up front for lots of product that most of them won't be able to sell and that's how she's going to become a millionnaire.

Am I being unfair? Is this how the MLM system works?

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22nd Mar 2012 15:06

I once had a client...

... who got involved in "Herb-a-life".

Your understanding is of MLM is spot on.

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By neileg
22nd Mar 2012 15:28

And I did Amway

I learned a lot, some of which is still useful to me now but it's a very hard way to make money. Even the fat cats in the system look pretty lean unless you're right at the top of the pyramid.

 

Oops - did I say pyramid....

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22nd Mar 2012 15:47

As a concept I think that MLM and Amway can work but MLM does atract rogues too; like any industry I suspect.  Amway has real products and you only buy what you have already had orders for but it does require commitment to make money; like any industry I suspect....

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22nd Mar 2012 16:30

MLM's are just pyramid schemes with products. Unfortunately, most networking events are riddled with them.

 

 

 

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22nd Mar 2012 16:45

Roland195; I think that you are being a little unfair.  Wholesalers sell to retailers; retailers sell to the general public.  Is that a pyramid scheme?  Some MLMers can be a evangelical but that does not mean that the business is unethical. 

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23rd Mar 2012 10:00

Flawed business model

Fred Smith wrote:

Roland195; I think that you are being a little unfair.  Wholesalers sell to retailers; retailers sell to the general public.  Is that a pyramid scheme?  Some MLMers can be a evangelical but that does not mean that the business is unethical. 

You will not become wealthy from an MLM scheme unless you are the one that dreamed it up. In most of them the products have little to do with anything - it is the recruitment of more suckers under you that generates money with the products simply being the somewhat legitimate reason for the cash flow usually in the form of a mandatory "starter pack" or some such.

 

 

 

 

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22nd Mar 2012 17:37

Ah Yes - the starter pack

That's the real reason for this woman's reticence I suspect.

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29th Mar 2012 12:42

Products used by all of us...

... sounds like Telecom Plus / Utility Warehouse to me (electricity, gas, telephone and internet). I know of a few MLM marketers (having attended a lot of breakfast meetings a few years back) and a couple of them are making very decent income... but they were in on the scheme at the early stages (5-6 years ago for T+).

 

 

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