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1 - I'm not implying laziness or think there is something wrong with people who don't want to go into this line of business. I've worked in the industry for years. I've seen that there are some people it doesn't work out for. No different than people who a job doesn't work out for. It doesn't mean the job is bad or the people are lazy - just sometimes the two together are not a good fit.
2 - Correct, some people don't want to do it. That's totally fine.
3 - Some MLM's do offer retirement and health insurance. There's some research to be had if you don't think they do. There are plenty of MLM's that don't require a very large investment. I started with $250. We have options less than that now. (and to be clear, not trying to recruit, just showing another side of it than what's being posted). In addition, while self-employed, you can take advantage of SEP IRA's, individual 401k plans, and countless tax deductions. You do not get paid vacation - I don't think any self-employed person does though.
4 - Just as I wouldn't advise someone who worked at a company to only hire their friends, I don't advise consultants to only recruit their friends.
5 - There are plenty of companies that you can make real money just by selling the products without recruiting someone - I sold over $100,000 in products last year (and for the previous 8 years before that) and made a great commission just on those products (50-65%). Didn't require me to have a team in order to do that.
There are different models out there. They will work for some, not all. Just like a job. If you don't want to work somewhere, or run your own business, don't. If you do, it's an option. That's all.
#3 "There are plenty of MLM's that don't require a very large investment. I started with $250."
And that is because if you exceed the threshold, the FTC's Business Opportunity Rule applies, in which case you would be required, by law, to provide full and audited disclosure of any "opportunity". By intentionally remaining below that threshold, MLM's are free to present totally manipulated half-truths and exaggerations to potential recruits.
Making $100k? If so, that is gross commissions, before expenses. And a good chunk of that comes from hosting seminars and conferences across the country, where they must pay for flights and accommodations and meals. Most of the big earners also employ staff. And its not rare for many of them to receive corporate appearance fees for speaking on stage at large regional conferences and national conventions.
Well that's a good point. Many MLMs present these earnings as though that's what they get. It is actually not. They haven't deducted all their business expenses. Many of them, after deducting business expenses, actually earn very little or nothing. Many people don't understand the concept of "total earnings must exceed total expenses".
Check out this website for more information. Particularly those MLMs that expect you to have inventory on hand. Lots of about how common it is to go into debt.
It occurred to me that my comment might sound a bit sexist, but I really have not known men who get involved in MLMs, even though I do know stay at home dads who could theoretically do these on the side, just like the women I know. To be fair, most of the MLMs I'm familiar with (from getting hit up by "friends" and inundated with FB "party invites," etc.) are ones like Lula Roe that are probably more likely to draw in women.
FWIW, folks tried to sucker me in... twice. I never signed up nor paid the fee, but given my gut instincts, I shouldn't even have entertained going to those "intro meetings". I was out of work for one of those cases, so if you tell them you're looking for work, that could be one angle they exploit. They'll just invite you to these meetings "for a job", but won't provide any details. If not, the same guy could've just used some generic line like
"I think I know you from somewhere... was it event X?"
"No?"
"Either way, how about you check out a 'great opportunity'?"
Listening to people who have never worked their own business before, whether MLM or not, doesn't make sense. There are plenty of people who show up for a job every day and don't do anything but collect a paycheck at the end of the week. There are plenty of people who show up and work their butt off and make a salary that's capped. MLM's will weed out the first example and reward the second.
I've never met anyone who sent money to a Nigerian prince either. Yet, I know well enough to stay away. I don't need 10 people to tell me that something is fishy with that email.
Quote:
Originally Posted by sandy6879
Does it work for everyone? No. But neither do jobs. How many people do you know who haven't been successful in one career field or another? How many people get promoted to the top of their workplace? Same thing applies here. The difference - in a "regular" corporate America job, there's limited positions to be able to get promoted to. In an MLM, it's unlimited. Only you are in control of where you end up with it - not a hiring manager.
I know quite a few people who have been promoted. Those who haven't are still making good money, working 40 to 50 hours a week, can buy a house/rent a decent place, eat out, have some discretionary funds for entertainment, and still save 10 to 15% of their monthly income into their savings
Many of the people in MLMs making out like a bandit are at the TOP of the pyramid. You needed to have gotten in decades ago, when the whole biz wasn't saturated (and when the internet wasn't a source to share just how these folks operate). Even by their own admission, you make so very little money. THAT'S A VAST MAJORITY OF THE INDIVIDUALS (around 99%). That money is MUCH LESS than MW. Amway folks were trying to get the caterers for their event to sign up for the program. They all said "nope", or "**** no!".
Some require certain types of clothing, that the employee pay for. However an MLM isn't a job where you just collect a paycheck from a company - it's starting a small business.
Any small business requires start up costs.
Ex: Real estate agents require a license, training classes, business cards, office fees, etc, all of which they pay out of their pocket before they can start.
MLM's aren't any different than buying into a franchise. You pay in to use the company's branding, product, training, set up, etc. Would you say the same about someone buying into a Dunkin Donut's franchise? All of these are the same general concept. For some reason, MLM's are the ones that people like to say are terrible when pretty much anyone who becomes a small business for anything also puts out initial start up costs. There's no guarantees in anything - regular jobs, small businesses alike.
I own a franchise restaurant and have done an MLM in the past. The gigantic difference between a legitimate franchise and MLM/Direct Sales/Pyramid Scheme is that I make money selling our product. No where am I asked to recruit other owners in order to make the real money. And corporate is not interested in how much in supplies I'm buying, they care how much I'm selling. I don't know of a single MLM that pays commission based on sales to the end consumer rather than how much a consultant purchases from the company.
MLM do not work for majority of people. MLM only work for a small few individuals who bought into such business very early and quickly grew. Primerica, Quicxter, Mary Kay, World Ventures, Amway, Herbalife, Market America are all MLM companies. MLM can work, but it takes years of grinding building your base of reps, and building client of customers. I would not recommend doing MLM, unless if you plan to MLM as a secondary gig while being employed full time. If your MLM takes off causing you to earn the same amount of money as your main gig job, than quit your job and focus on the MLM. However MLM as a main job in the beginning. That's a no!
I have a neighbor who was one of the early joiners of an MLM. Been doing it for at least a decade and makes decent money. But even at her advanced level, she still has to work a regular job just to be able to get benefits for her family.
I have a neighbor who was one of the early joiners of an MLM. Been doing it for at least a decade and makes decent money. But even at her advanced level, she still has to work a regular job just to be able to get benefits for her family.
The real money in MLM is not in the selling of a product or service, but in selling the dream, and charging those seeking the dream to buy your training dvds, or pay to attend your seminar or conference, or if you're really good, receive corporate appearance fees for speaking on stage at large regional events or national conventions. That's why whenever income lists are shown, the heading used will be "cash flows" or "revenues", rather than "commissions".
I agree. These firms pull in countless numbers of people every day. They create visions of life on easy street, playing on peoples desires. Its especially bad for those out of work for a while, as they will pay to join and wind up disappointed and further in the hole. Its the same psychology used by self help groups to sell seminars worth thousands of dollars. One called NXVIM made the news recently for sex slavery. These people know how to get in the heads of others, be it to get money or something else.
I posted a while back in a seminar I got roped into with a friend. The host ran onto the stage apologizing for being late as he came from his beach house in Ipanema. He practically called us all fools for working a full time job and not being a member of the sales cult. Even went as far as telling people who didn't have the cash to join now to call a friend, family member or even ask a fellow spectator to possibly help. I was stunned. Wanted to strangle my friend for having brought me. He fortunately saw through the horse manure sales tactics also and didnt join.
The host had all the mannerisms of a used car salesman crossed with lingo designed to hit the right mental buttons of some people. Quite a few looked like they joined that day.
I've attended 2 of their "intro meetings", and 1 hosted at a private residence. It really feels like a cult, and the type that's awful. They won't resort to murder nor physical torture, but they do quite a lot against you....
--The "would you agree" argument...
I heard that this opportunity is NOT good!
"would you trust your friends to do surgery?".
No
"Then why would you listen to them about Amway when they hasn't done it"
--Your upline has you write your goals and dreams and tuck it away...
So that later on, if you're having doubts or want to quit, they bring it up to manipulate you into staying. For example "you said you wanted to own your own home! Are you giving up now?"
--the "intro meetings" had a cult feeling to it
The presenter says "would you want to 'such and such'?". If no response, goons in the back reply "no!"
You're under the impression that they're friendly to you b/c you're giving them money. As soon as that stops, they blacklist you, and ignore you
--With Amway stuff, most people would rather just go to Walmart, or their supermarket
The stuff about being more concentrated/better value is a joke.
--they keep hounding you to go to their meetings
I wouldn't sign on the dotted line and pay the fee, so they guy told me to just keep attending meetings. They provided nothing, so I just had to tell him "no" the next time they asked me to come to the next one
--I read online that these folks have tried to convince people to sell their homes, and move into an apartment, so they can have more money to spend on "the program"
A house is one of the most valuable assets that anyone can have. Not worth selling it. Esp. for Amway
--you get cases where an upline guru in his 20s has the gall to advise a 50yo downline on how to be financially successful
Most amusing is that upline drives a beater car, lives in some ****ty house/apartment, and eats Ramen noodles everyday. The downline OTOH that's supposedly NOT financially savvy has a house that's paid off, decent car (not some luxury brand, but it's solid), and has retirement and savings built up.
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