I have researched multi-level marketing companies for nearly a decade. During that time, I came to the conclusion that the vast majority of participants fail. What does that mean? 99% or more lose money. Since the participants are largely getting in because of the “business opportunity” to “earn unlimited income” and find “financial freedom,” failing to turn a profit is indeed a failure.
The latest crybaby is World Ventures, a multi-level marketing company which says it is “…the world’s largest direct seller of curated group travel, with more than 120,000 Independent Representatives in over 24 countries and we are still growing…..”
Like any good MLM, WorldVentures simply cannot allow people to criticize the company. Negative opinions must be met with swift legal action!Continue reading
Citron first points out how dependent on China Nu Skin is. In the second quarter of 2012, revenues from China were $57 million. In the second quarter of 2013, Nu Skin’s China revenue grew to $197 million. That’s a 245% increase. Without the China revenue, NuSkin’s year-over-year growth would be negative.
Multi-level marketing companies are getting lots of attention lately thanks to the Bill Ackman smackdown of Herbalife in December. MLMs offering “nutrition products” are of special interest to consumers, and with good reason. Companies like Isagenix, MonaVie , Usana, Mannatech, and Shaklee all offer magic potions that claim to help you lose weight, absorb more vitamins and minerals, and cure all diseases.
One of the most common arguments used against those who deem multi-level marketing companies pyramid schemes, is that pyramid schemes collapse. Because Herbalife hasn’t collapsed, it must not be a pyramid scheme. Because the company has avoided total collapse for more than 30 years, it can’t possibly be a pyramid scheme. That is false, and I will demonstrate the falsity with the help of Bill Ackman.
Recruiting is the Name of the Game
A pyramid scheme has been defined as a scheme in which the participants obtain their monetary benefits primarily from recruitment rather than the sale of goods and services to consumers.Continue reading
But what struck me today as I was perusing the archives of Salty Droid is how similar “internet marketing” and “multi-level marketing” are. They take a product which is either non-existent or has very little interest to actual consumers (i.e. third party purchasers, rather than the pushers/distributors themselves) and build a “business” around convincing others to push the same “product.”Continue reading
Instead, the non-retail direct selling schemes present a compelling and very alluring picture to potential recruits that diverts attention from the flawed structure and its disastrous outcome. Virtually all companies of this type in every country they operate in make the same alluring and misleading promises to recruits:Continue reading