Truth About MLM: Almost Everyone Will Lose Money

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Last week the Salt Lake Tribune published a fantastic article about the reality in multi-level marketing, entitled Utah Juice Companies Offer Few Prospects. MLMs like Mary Kay, Amway, MonaVie, and Herbalife have been claiming that the great recession has increased the number of distributors because people are looking for ways to make money during this time of high unemployment. The problem with this claim is that while more people are signing up for these bogus business opportunities, almost no one is actually profiting from their activities.

Multilevel marketing companies like to refer to themselves as “direct sales” companies. They want to keep the focus off recruiting and onto selling of the products directly to customers. The problem is that little actual retail sales occur for a number of reasons: Continue reading

Fortune Hi Tech Marketing: Real Money Made From Recruiting, Not Product Sales

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Earlier this week I showed you how Fortune Hi Tech Marketing appears to be a pyramid scheme, rather than a legitimate “direct sales” company or multi-level marketing opportunity. Today we are taking a look at the recruiting aspect, which is what I believe makes FHTM cross over the line into the world of pyramid scams and Ponzi schemes. Last time I cited claims from participants in FHTM that recruiting was the true focus of the “business,” and today we’ll look at that a little more in depth.

There are so many ways to get people to buy into the idea of joining an MLM. These days, you will hear about unemployment and financial pressures, and how companies like Fortune Hi Tech Marketing offer an opportunity for unlimited earnings. The recruiters will tell you that even if you don’t get rich with FHTM, you can still make some money to help pay bills.

Be your own boss… make an unlimited income… control your own financial future… provide a better life for your family… pay a few bills each month… make money from things you’re already buying… All of these things sound attractive to almost anyone, and that’s why they are used in recruiting pitches. Continue reading