But the fact is that they are often over-priced for what they are, and still the sales reps, even the “directors”, when all their time is accounted for, are not making much money per hour, despite this.

And a smart shopper can now find comparable quality cosmetic products in drug stores these days.

The deception is a perception problem caused by the natural human tendencies that lead people to believe things long after they make sense, or fail to take the time to critically examine a situation logically.

Naturally you’re going to get a better product if you buy the product that’s the low-end of the pricey stuff rather than the low end of the cheap stuff.

The comparison is not fair.

If you go into the drug store you think – wow, this nail polish is $8 – that’s expensive compared to this other that’s 99 cents.
Then you buy the 99 cent nail polish and think – wow this is crap compared to Este Lauder’s $15 bottle, and crap compared to Mary Kay’s $12 bottle…
Well, you very well might be right.
Well but that’s not taking into account the $8 nail polish that you didn’t buy at the drug store.

It is a lot easier to apply, dries faster, and is more chip resistant than the 99 cent one, and moreover, it might be equal in quality to the $15 bottle of nail polish at Macy’s, or the $12 bottle from Mary Kay.

But that gets lost with the idea that “what I bought at the drug store was junk”. Well of course it was junky, it was 99 cents.

And not to even knock the 99 cent stuff, because clearly there’s a market for it. If you’re a fashion die-hard on a tight budget who likes to change your nail polish colour ever few days – there’s really no reason to buy anything more chip resistant or fancy.

Almost all products are subject to the possibility that “you will get what you pay for” to some degree – and you have to be a smart shopper in order to make sure you are getting what you’re paying for.

Whether it be vitamins, cosmetics, or power tools, there’s going to be people who are looking for a cheap alternative they’re willing to settle for.

Though I’m not sure I see the need for low-end vitamins. Cheap nail polish is one thing. A cheap power tool for someone who’s only going to use it once or twice, or very infrequently & lightly might make sense.
Not sure of the need or possible use for shoddy vitamins!

I still use MK products but I just purchase retail. Selling is not my thing but I will not try to sell or become something I don’t want to be. I know using the products sounds hypocritical but it really did change my skin.

I have no doubt that back in the 70s, there was more money to be made from sales in those companies by sales level reps.

I think even those companies have shifted even more toward recruiting because simply, the business model of door to door direct sales just doesn’t make sense in today’s society.

When you take a company like Fortune Hi-Tech Marketing on the other hand – there was NEVER any product of their own, and absolutely zero reason to buy any products through them as a middle man.

Or the Herbalife vitamins & such – which can be purchased better quality & cheaper just about anywhere else.

At any rate, the comment about “never mention pyramid” was certainly not one made by FHTM.
They even had it on a slide – showing what a pyramid is “under the law” and showing how FHTM’s structure was successful in side-stepping those laws, so you could be confident about THEIR pyramid, because of their set-up.

Another warning of MLM’s is when the numbers just don’t add up. Family members years ago joined Amway oh, sorry, ‘Network 21′. In turn they tried to recruit me, ostensibly by asking if they could practice their pitch with me.

During the pitch, the numbers just didn’t add up. When I mentioned this, they tried to convince me I was mistaken, or it would be covered ‘later’. When I insisted, they looked guilty, then crestfallen. They finally admitted it DIDN’T add up and that they had been told not to worry about it because nobody would realise it. I had already made it clear I had no interested in joining Amway/Network 21, but what I wondered was how THEY could have joined, especially considering what they’d been told. I don’t understand how people can be so greedy that 1) they know the numbers don’t add up but try to pull the wool over other people’s eyes, and 2) most importantly, why would THEY go into business with the people upline who were telling them to do it?

Greed makes people happy to try to dupe others ‘downline’, and blind enough not to realise that they are ‘downline’ from the ones who recruited them. I think it’s sad what people do to each other, and themselves, for the love of money.

btw your article gave me the idea to start a business, oops, RELIGION where people have to pay to ascend levels to unlock further knowledge …oh, wait, that’s already been done? oh well.

The way you describe MLM companies, makes the readers to believe that all MLM companies operate like this. And if they do, it seems that you’re telling the readers to start their own to steal from people. What am i missing here?

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.

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!

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Briliant Post, Tracy, and funny as well.

Regards from Portugal,

Pedro