Comments on: Does this describe your MLM?

By: Gary

Gary — Mon, 04 Jan 2010 07:02:37 +0000

There is one simple thing that all network marketing companies can do to help put an end to people like you who write negative things about them and that is to cancel the monthly purchasing requirement. Almost all MLM companies claim that their product is superior and can therefore charge way more than their competitors.

If their products really were that good, then their distributors should know that and be willing to buy the products willingly each and every month. If that is the case, why have the monthly requirement? The reason is simple, which this article points out. The company needs to sell these over priced products to someone, so they make the distributors do it and the only reason why distributors are willing to do this is because of the dream of making a ton of money. Without the “business” part of all of this, very few people would buy these products.

If you think about it, this whole MLM structure is genius if you were to start a company that sold products most people wouldn’t buy because of the price. You can basically guarantee that as long as your recruitment base kept expanding, your sales would increase every single month.

Show me a company that doesn’t require a monthly purchase of the products, one that leaves the decision up to the rep, and I’ll praise that company. Any takers? No one? I didn’t think so. And no, the argument that “you can’t be promoting what you don’t personally use” isn’t valid. It’s just an excuse to enforce monthly purchases. Again, if the products were so good, having reps buy the products every month shouldn’t even be a problem but apparently, it is.

By: Tracy Coenen

Tracy Coenen — Wed, 14 Oct 2009 23:29:18 +0000

Avon is NOT a direct sales company. I am sick of them getting a pass in this regard. They are on the recruiting bandwagon just as much as the other MLMS.

By: michael webster

michael webster — Wed, 14 Oct 2009 22:27:35 +0000

It doesn’t help matters that a number of direct sales companies, like Avon, which do have sales overrides, belong to the DSA which is home to some very dubious elements.

Ironically, the DSA has lost control of the legislative program. By rejecting the FTC’s new Biz Op Rule, their earnings claims are now going to be governed by the new FTC’s guidelines under Section 5 for testimonials.

The removal of the safe harbor is a game changer.

By: Lee D

Lee D — Wed, 14 Oct 2009 22:09:55 +0000

If you have no customers, you have no business. It’s that simple, regardless of whether you’re embroiled in an MLM or own a real company.

By: Tracy Coenen

Tracy Coenen — Wed, 14 Oct 2009 20:15:51 +0000

I want to be part of the solution too. I have yet to find even one MLM that is nothing more than an endless chain recruitment scheme. I wish all MLMs would go away. They drain billions of dollars each year from millions of families. That money could be used in a much better way, rather than flushing it down the toilet on some overpriced crappy MLM products.

By: Kevin Thompson

Kevin Thompson — Wed, 14 Oct 2009 19:59:54 +0000

Tracey,

Thanks for sharing the content of my article. And I’m glad you found it informative. I agree, there are a lot of problems currently inherent in the industry. When you mentioned your observation that most companies require recruitment to advance, I would say that a lot of those companies are driven by volume, not by “active” distributors. Still, if most of that volume comes from the sales force, I would agree that there’s a problem.

I want to be a part of the solution in the industry. The bad companies need to be weeded out and resources like your website help. In addition to representing start-up MLMs, I do represent defrauded consumers. I will be filing a class action lawsuit within the next two weeks against a pyramid scheme. Stay tuned. When you hear about it, I would greatly appreciate some added buzz about the lawsuit. Thanks and take care.