Posts Tagged ‘pyramid scheme’
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My mom is quite poor. She stays at home and she and my dad are divorced. For extra cash, she tries to earn money via MLM (multi level marketing or network marketing – similar to 'pyramid' schemes). She has tried out at least half a dozen over the past decade and all they do is **** her in, she exploits her friends, goes on overseas conferences, she's convinced she'll be a multi-millionaire within months and maxes out her credit cards on MLM junk (buying stock she never sells, advertising paraphanalia etc). Despite failure after failure, she convinces herself that it'll make her big bucks. I try to be tactful but she's been so brainwashed she won't have a bar of what I say – MLM is the future of the economy, it is NOT a pyramid scheme but a real investment opportunity, such-and-such made millions out of it, blah blah. What should I do? It's become such an issue that sometimes there's not enough money for food and electricity!
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Has anyone heard of a company called USANA?
I remember back a couple of years, companies like 2by2, V1 and many others I can't remember anymore, made lots of money with recruiting people in at location for an educated seminar. Then the companies either backflipped or dissapeared, and ended up not making enough to survive. I was just recently invited to (I believe) a similar seminar tonite, and would like any input from anyone out there who knows anything about USANA, and the owner DUKE? Is this another scam, or is it for real? If it is an MLM, or pyramid scheme is it early enough for me to get in and make some money?
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the definition of MLM is: A sales system under which the salesperson receives a commission on his or her own sales and a smaller commission on the sales from each person he or she convinces to become a salesperson.
The definition of a pyramid scheme or marketing is Typically, new recruits pay a sum of money to join the "program" and become a distributor of a product or service, and are told that they'll make money based on the number of new recruits they in turn bring in. The basic idea is that the higher up on the pyramid you are, the more money you'll make.
As a former MK person this is exactly how they work so how can they deny it?!
They claim to be the #1 selling brand, howeever their sales numbers are based off of what the consultants buy not what the customers buy so even that's not ligit. Yes it's a good product but it's not the best. I've had directors tell me themselves, the only way to make money in MK is by recruiting, and convincing the new recruit to purchase as big of an inventory you can possibly convince her to buy.
they claim dual marketing because the commission off the recruit doesn't come from that person. However, the definition of MLM or Pyramid says nothing about where the commission comes from, it only says they recieve a commission.
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I have a wonderful organic network marketing business (http://www.puretree.com) that I would like to promote to others as a Business Opportunity . What are the best methods to advertise it?
LOL, thanks Jibba. I don't own the company but am an independent rep. And yes, it's a reputable network marketing business. It's not a pyramid scheme. Sigh.
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You always hear them give the line that all business is set up like a pyramid to justify that MLM is built on recruiting people.
While real business has fewer people in high earning roles, it seems MLMers miss the very obvious point that even a lowly janitor at McDonald's doesn't have to recruit 5 other janitors to make a living wage.
Do people in MLM really think its the same? Do they really miss the point that real business doesn't have to keep hiring people for infinity to keep making money for its employees?
It just seems such an obvious difference, yet it makes no sense that people in MLM are convinced it is the same.
Andre – while you are correct about the legality, let's not let the absurdidty of the whole thing get lost on us.
The fact that MLM gets around being illegal and not a straight pyramid scheme is ONLY becuase there are products and services available to be sold by the reps; however, the fact is nealry all MLMers focus their attention on recruiting others instead of sales – meaning although it is legal for all intents and purposes it is virtually the same.
If MLM companies wanted to put the focus on personal sales instead of recruiting then how can you expalin that ALL MLM compensation plans allow you to move up the ranks ONLY by recruiting others. You can be the worlds best salesperson but unless you recruit other people you can't obtain the top rank in any MLM compensation plan.
Let's get serious, they are the same, depsite anyone considering it "legal" or not.
L.F.Heap – you spent spent your entire answer describing any sales company.
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MLM has the following properties
1. Multiple levels of experience, expertise, and management, like any business.
2. Always promises good pay, even to beginners
3. Selling something overpriced
4. Commissions are split, and the people on top make more doing less
5. Takes time to build your network/customer base
Is that an accurate description of MLM/pyramid scheme, and does real estate differ much from this business model?
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I just want to hear about one MLM company, just one, where the emphasis is on sales, not on recruiting.
Let me clarify, I am in no way interested in joining any MLM, so don't bother. I am merely interested in hearing if any MLM's exist that actually are about sales, and not a pyramid scheme. And please, don't tell me focusing predominantly on recruiting to make money is not pyramiding.
Mexico4me, i think you need learn what leverage actually is rather than just accepting a term from your MLM buddies.
In your silly example you merely transfered the hours worked to your downline without changing the total hours worked. Suddenly we are to believe that you are still making the same amount of money working no hours yet your downline makes money as well? So because you merely spread the hours worked out among more people the company is paying out more money? Right. Do the math.
This is my EXACT point. MLM is set up with the mentality that its better to make money by recruiting people than it is to work hard.
You are delusional if you suggest that is about sales first. You have said in prior answers that no one sells enough personal volume to make a living without a downline and that is precisely why MLM is flawed. Its about making money recruiting (a pyramid) not about sales. The fact that some product is sold doesn't negate that fact.
Sunny, saying MLM is part franchising is merely MLM tag lines, aka propaganda to justify to the naive.
Think about what you are suggesting. Most people are not sales driven, yet you are telling them its the same as a franchise.
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All the credits go to the artists that give more joy to our lives. MLM Cartoons is a collection of cartoons that can be found on the Web. Also give us a look of the typical path of all people that enter in contact with Network Marketing Companies, Pyramid Schemes, Scams and Frauds, and how it always ends!!! SPAM, PYRAMID SCHEME, MLM, AVON, NIKKEN, DISTRIBUTOR, HERBALIFE, AMWAY, CATHOLIC CHURCH INDULGENCES
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www.firstclassmlmtools.com Discover proven network marketing ideas and strategies that will grow your business faster at www.firstclassmlmtools.com Tim Sales built an MLM business with an income of over $150000 per month with 2400+ new distributors joining per month. He now creates training tools and sales aids for everyone in network marketing.
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