Comments on: Create your own MLM in ten easy steps

By: Bob Hart

Bob Hart — Wed, 05 Mar 2008 08:05:51 +0000

What I notice about the many varied but similar schemes masquerading as legitimate business opportunities is that they basically survive like a parasite feeding upon the body of their supposed business partner host. What really allows this host/parasite relationship to happen is that the host doesn’t accurately perceive what is really going on. The host’s first mistake is forming a relationship with the parasite, and the second most tragic mistake is allowing the parasite to “teach” the host how the relationship should work. The host may become very uncomfortable with the parasite, but the parasite keeps the host dreaming about the glorious days when the parasite is going to be so grateful for the host’s blood sacrifice that the parasite is going to pay the host back handsomely and they will live happily ever after as in a fairy tale.

We know that parasite/host relationships do not work this way in the physical real world, and neither does it work that way in the real world of these scam business “opportunities!” (Which are truly never an opportunity.)

What allows parasitic relationships to exist under this guise of a business relationship is that the host is not truly knowledgeable in the way and means of business, and this ignorance allows the parasite to take control of the host partner. The host could easily break the relationship by casting the parasite off, but the parasite convinces (cons) the host into a false belief set. As long as the host remains deceived and deluded, the parasite succeeds, suckles and grows fat. At some time into the future, the host–badly weak from being sucked dry–casts the parasite off. The parasite then goes off fat and happy looking for another “business challenged” person (host) to suck up to.

The best and only real defense against MLM pyramid scams and schemes is true business knowledge, common sense and wisdom. These “dream merchants” prey upon people who do not understand core fundamental business concepts necessary to avoid the pitfalls and deceit of the hard sell. They are taken in by imperfections of their own character and lack of knowledge.

By: Crie sua própria empresa de MMN em 10 passos. « A Indústria da Decepção?

Crie sua própria empresa de MMN em 10 passos. « A Indústria da Decepção? — Fri, 25 Jan 2008 19:46:34 +0000

[...] sua própria empresa de MMN em 10 passos. 25 01 2008 Tradução do artigo “Create your own MLM in ten easy steps“, do sequence-inc.com. Todo ano milhares de americanos são enganados por empresas de [...]

By: Pedro Menard

Pedro Menard — Thu, 10 Jan 2008 12:34:25 +0000

“F. The Company pays all commissions directly to Independent Beauty Consultants and independent Sales Directors. The commissions are paid based upon monthly purchases and recorded on computer reports furnished with the commission payments.”

Well, I think this ONE sentence says it all!

Pyramid scam “à la carte”

Commissions based on PURCHASES, nor actual SALES. No computer records on the Sales. No way to know if there are ANY sales. Complete disregard to the model and values of “DIRECT SELLING”.

Nice Going, Karen! Keep’em coming!

—-

Briliant Post, Tracy, and funny as well.

Regards from Portugal,

Pedro

By: Tracy Coenen

Tracy Coenen — Mon, 31 Dec 2007 17:24:47 +0000

Hi Karen – This is propaganda from Mary Kay Inc. to try to “prove” that they’re not an MLM and a pyramid scheme. But they are. They don’t stop being a pyramid scheme just because they say they aren’t. The company relies on recruiting and frontloading, and very little actual selling of product occurs. That’s a pyramid scheme, like it or not.

By: Karen

Karen — Mon, 31 Dec 2007 17:21:32 +0000

II. MULTI-LEVEL AND PYRAMID SALES ORGANIZATIONS
Confusingly similar terminology is being used by some multi-level, “network marketing” or pyramid companies, who sell
directly to consumers in the home. In the course of your Mary Kay business, you will no doubt be confronted with
questions from customers or potential recruits concerning the Mary Kay marketing plan. It is important to clarify that
Mary Kay is not a multi-level or “pyramid” company. The following points concerning the Mary Kay marketing plan are
of particular importance in distinguishing it from these other organizations:
A. There is one wholesale sale (Company to Independent Beauty Consultant) and one retail sale (from Beauty
Consultant to customer) of Mary Kay® products. There are no levels of wholesalers between the Company
and the consumer through which products pass at varying discounts before sales. Thus everyone, whether
Independent Beauty Consultant or Independent Sales Director (unit Director of Beauty Consultants), purchases
all cosmetic products directly from the Company at the same published wholesale prices for resale to
consumers of their choice. Everyone has the opportunity to buy at the same discount irrespective of their level
within the independent sales force career path.
B. Everyone recruited as an Independent Beauty Consultant is recruited to sell products at retail. Independent
Beauty Consultants do not recruit others to buy products from them. All Independent Beauty Consultants are
thus aware that all products purchased by them are for sale at retail to ultimate consumers (or may be returned
to the Company for repurchase).
C. Everyone begins as an Independent Beauty Consultant with the purchase of a starter kit. No compensation is
earned by anyone on this starter kit purchase, i.e., “for introducing” a new Independent Beauty Consultant. No
“investment” is required and no level within the independent sales force career path may be purchased by the
payment of fees or by the purchase of a given quantity of products from the Company or anyone else. There are
thus no “sales” of “levels,” “positions,” “distributorships,” or “franchises” by the Company or any of its’
Independent Beauty Consultants.
D. Elevation from Independent Beauty Consultant to Independent Sales Director does not involve the payment of
any fee, rebate, premium or hidden discount of any kind to either the Company or anyone else. Elevation, at the
election of any Independent Beauty Consultant, is based strictly upon proven recruiting and sales ability.
E. Any Independent Mary Kay Beauty Consultant who terminates her contractual relationship with the Company
may return unsold products in resalable condition, and these will be repurchased by the Company per the terms
of the Independent Beauty Consultant Agreement at 90 percent of her original net cost.
F. The Company pays all commissions directly to Independent Beauty Consultants and Independent Sales
Directors. The commissions are paid based upon monthly purchases and recorded on computer reports
furnished with the commission payments. The entire marketing structure is based on and intended to foster
retail sales to ultimate consumers. Commissions paid on any products returned by a terminating Independent
Beauty Consultant for repurchase by the Company, pursuant to Item E above (i.e., products not sold at retail),
are charged back to the commission recipient