☆ No lie. 1:
MLM is a business that offers a better opportunity to earn a lot of money compared to other businesses or other jobs.
Truth:
For almost everyone who invests money, MLM ends up with a loss of money. Less than 1% of MLM distributors earn a profit and those who earn a lifetime income in this business a much smaller percentage. Unusual marketing and sales ways are the main cause of this failure. However, if anyway this business is more entrusted, mathematical calculations will certainly limit the chance of success. This type of MLM business structure can only sustain a small number of winners. If someone needs a downline of 1000 people to earn a lifetime income, then the 1000 people downline will need a million people to get the same opportunity. So how many people can realistically be invited to join? Much of what appears to be growth is in fact the constant sacrifice of new distributors. The money that goes into the winning elite bag comes from the registration of the losers. With no limits on the number of distributors in an area and no evaluation of the market potential, the system is unstable from it.
☆ No lie. 2:
Network marketing (marketing rely on the network) is the most popular and effective new way to bring products to market. Consumers like to buy products in a door-to-door manner.
Truth:
If you follow MLM's mainstay activities of continuous sales membership and observe the basic laws, which are one-on-one retail sales to the consumer, you will find unproductive and impractical sales systems. One-to-one retail sales to consumers is an old-fashioned way, not a future trend. One-on-one selling to a friend or relative demands a person to change his shopping habits drastically.
Someone will find that his choices are limited, often paying more for a product, buying uncomfortably, and clumsily making business deals with close friends or relatives. The unfeasibility of door-to-door sales is the reason why MLM is a business that constantly sells the opportunity to become a distributor.
☆ No lie. 3:
Someday, all products will be sold with MLM model. Retailers, malls, catalogs, and most advertising will die because of MLM.
Truth:
Less than 1% of all sales are made through MLM and many volumes of this sale occur because of purchases by new distributors who actually pay the registration fee for a business that it will then leave behind. MLM will not replace the existing marketing means. MLM simply can not compete with other marketing ways. But more definitely, MLM represents a new investment program that borrows marketing and product terms. The real MLM product is a membership (being a distributor) that is sold in a way that misleads and exaggerates the promise of income. People buy products to keep their position on a sales pyramid. MLM supporters always emphasize that you can become rich, if it were not for your own endeavor, the wealth comes from someone you do not know who might join your downline, or the term "big fish" MLM. MLM growth is a manifestation not of its added value to the economy, consumers, or distributors, but rather a manifestation of high economic fear and insecurity and increased dreams of getting rich easily and quickly. MLM grows in the same way as the growth of gambling and lottery.
☆ No lie. 4:
MLM is a new lifestyle that offers happiness and satisfaction. MLM is a way to get all the good in life.
Truth:
The most conspicuous appeal of the MLM industry as it is delivered through advertisements and presentations of new members withdrawals is its materialism trait. Fortune 100 big companies will collapse as a result of the promises of wealth and luxury offered by MLM vendors. These promises are presented as a ticket to self-satisfaction. The excessive MLM charm of riches and luxuries goes against the aspirations of most humans with respect to valuable work and to give satisfaction to something that is his talent and interest. In short, the MLM business culture diverts many people from their personal values and deflects one's aspirations to express his talents.
☆ No lie. 5:
MLM is a spiritual movement.
Truth:
The borrowing of the spiritual concept (kerokhanian) such as awareness of prosperity and creative visualization to advertise MLM membership, the use of words like "communion" to describe sales groups, and claims that MLM is the implementation of Christian principles or evangelical teachings is the great apostasy of The teachings of rokhani. Those who focus their hopes and dreams on riches in prayers clearly lose sight of pure spirituality as taught by all religions embraced by humanity. The abuse of these spiritual teachings must be a sign that MLM's investment offerings are misleading. If a product is packed with a particular flag or religion, beware! The "community" and "support" offered by the MLM organization to new members is based solely on their purchases. If spending and registration decreases, then the "communion" decreases.
☆ No lie. 6:
Success in MLM is easy. Friends and relatives are prospects. Those who love and support you will become your customers for life.
Truth:
The commercialization of the family ties and friendships necessary for the course of MLM is a crushing element in society and very unhealthy for those involved. Seeking benefits by making use of family ties and the solidarity of friends will destroy one's social psyche. MLM activities emphasize relationships that may not be able to restore a relationship based on love, loyalty and support. Aside from its devastating nature, experience shows that very few people like or appreciate the atmosphere of being seduced by friends or relatives to buy products.
☆ No lie. 7:
You can do MLM at your leisure. As a business, MLM offers flexibility and freedom to manage time. A few hours a week can result in huge revenue increases and can grow so great that we no longer need to work for others.
Truth:
The decades-old experience involving millions of people has shown that making money through MLM demands tremendous time sacrifice and high skill and fortitude. Aside from hard work and talent, MLM also clearly erodes more areas of personal life and more time. In MLM, everyone is considered a prospect. Any time out of sleep is the potential to market. There is no limit to place, person, or time. As a result, there is no more free space or free time once someone joins the MLM.
Behind the veil earns money independently and is done in spare time, the MLM system ultimately controls and dominates one's life and demands strict adjustments to its programs. This is the main cause why so many people sink so deep and eventually become totally dependent on MLM. They become alienated and abandon other ways of relationship.
☆ No lie. 8:
MLM is a positive new business and supportive supporter) that strengthens the human spirit and personal freedom.
Truth:
MLM mostly runs due to fear. The recruitment always calls forecasts for the collapse of other distribution models, the collapse of the American economic robustness, and the least opportunity in other fields (professions or services). Conventional professions, trades, and ventures are constantly understated and underestimated because they do not promise "unlimited income". Being an employee is the same as slavery for those who "lose". MLM is regarded as the best last support for many people. This approach, besides being misleading, often also has the effect of lowering the passion for people who want to succeed according to their own vision of success and happiness. A healthy business will not show its superiority by presenting bad predictions and frightening warnings.
☆ No lie. 9:
MLM is the best option to have your own business and gain real economic independence.
Truth:
MLM is not a true self-employment. "Having" MLM distributor membership is just an illusion. Some MLM companies forbid their members to have other MLM memberships. Almost all MLM contracts allow for easy and fast membership termination. Apart from termination of the contract, the downline can be taken over for various reasons. Participation in MLM demands people to imitate the existing model strictly, rather than independence and individuality. MLM distributors are not entrepreneurs, but only followers in a complicated hierarchical system where they have little control.
☆ No lie. 10:
MLM is not a pyramid program because there are products (goods) are sold.
Truth:
The sale of a product is by no means an antidote to MLM to pass a pyramid anti-law law, nor is it an answer to allegations of unfair trade practices as stated in state or federal laws. MLM can be a legal business if it meets certain prerequisites set by the FTC (Federal Trade Commission) and the state Attorney General. Many MLMs clearly violate these provisions and are currently operating because no one has demanded. The recent court ruling set a 70% rate for determining MLM legality. That is, at least 70% of products sold MLM must be purchased by non-distributor customers. This provision will of course make almost all MLM category into violation of law. The largest MLM implementers recognize that they only sell 18% of their products to non-distributors.
10 Big Lies Multi Level Marketing
MLM business grows and MLM companies are popping up. Member withdrawal activities are everywhere. As a result, it seems as if this business is a wave of future business, a business model that is gaining momentum, is increasingly being accepted and recognized legally, and as its co-propaganda heroines, MLM will replace most other marketing and sales models . Many people come to believe with the recognition that success can be obtained by anyone who faithfully follows this system and implements its methods, and that ultimately everyone will become an MLM distributor.
With 14 years of experience in corporate consulting for distribution and after more than 6 years researching and writing about MLM, I managed to gather information, facts, and inputs that show that MLM business is basically a free market lie. This could be analogized by calling the purchase of a lottery ticket as a "business venture" and winning the prize as "lifetime income for everyone". The validity of the MLM industry's statement of the distributor's potential revenue, his remarkable explanation of the network's business model, and his recognition of mastery in product distribution is exactly the same as the validity of UFO's appearance.
The MLM system's legality is based solely on a decision in 1979 for a single company. The law enforcement guidelines presented in the decision are continually ignored by MLM industry actors. Lack of rules and monitoring by the authorities is also the reason why the industry persists despite some demands by the state Attorney General as well as the Federal Trade Commission.
MLM economic achievements are always characterized by high failure rates and financial losses for millions of people.
The structure of MLM, where the position on an endless sales chain is achieved by selling or purchasing goods, is mathematically untenable. Also, the MLM system that allows the recruitment of an unlimited distributor within a marketing area is clearly unstable. MLM's core business, direct sales, is in contrast to the trend in communications technology that is cost-effective (low-cost) distribution, and buying interest on the part of consumers. Retail sales activity in MLM is in fact a mask of its main business, which is hooking the owner of the money (investor) into a pyramid organization that promises multiple revenue growth.
As with all pyramid programs, the income of distributors at the top and the profits of the sponsorship companies comes from the continued entry of new (money) investors in the lower levels. If viewed roughly in terms of corporate profits and the wealth of the elite at the top, the MLM model would seem as if there would be no death to it, just like the pyramid program before it finally collapsed or demanded by the authorities. The major constituents or proponents of the MLM industry are not the consumer's public but the money-raising growers.
The market for these money-growers thrives in times of economic change, globalization, and employee layoffs. The promises of easy financial gain and the link between wealth and highest happiness also play a major role in this market condition. Therefore, the direction of MLM marketing is directed primarily to prospective distributors, rather than promoting products to buyers. Real MLM products are not DLD services, vitamins, or skin creams, but investment programs for misleading distributors are described with high incomes, little time usage, small capital, and success in a short period of time.