Some multi-level marketing (MLM) companies release income disclosures or earnings disclosures. These documents theoretically provide insight into how much distributors earn in commissions or overrides.
However, the disclosures are generally worthless. What is more important than the information in these documents? The information that is not disclosed in the documents.
Multilevel marketing companies purposely omit important information that would allow potential distributors or investors to have real insight into these plans. Continue reading
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
When will companies learn? Trying to silence critics of them with bogus threats of legal action just isn’t effective. We have something called “freedom of speech” here which guarantees us the right to speak our minds, so long as we’re being truthful. Yet that doesn’t stop multi-level marketing companies from trying to bully their critics.Continue reading
Multi-level marketing expert Robert Fitzpatrick discusses the phenomenon of high-level MLM distributors going from company to company. He also explains some distributor numbers released by MonaVie, which show that 91% of distributors receive no commissions from the company, and that the bottom 99% of distributors receive an average of $3.75 a week in commissions. Doesn’t sound like much of an earnings opportunity to me!
The scheme: Typical multi-level marketing company, using the guise of “direct sales” to make the business look like a legitimate retail venture. The reality is that it’s nothing more than a recruiting scheme like Usana, Mary Kay, Arbonne, PrePaid Legal, Primerica, Herbalife, United First Financial, and so many other companies that make big promises to members, but provide little actual reward to 99%.
The founder: Dallin Larsen founded MonaVie. He used to work for Usana Health Sciences, and actually helped found Usana. He helped grow the associates to 70,000 and helped make up the compensation plan. Then he ditched out and started his own company
The product: Acai berry juice plus other fruit juices. I like to call this “magic berry juice.” It supposedly cures whatever ails you and there’s never been anything quite like it on the market. If you study multi-level marketing companies, you will see that one very common characteristic is some unique/special product that is hard to find and has never been offered before. Continue reading