Multi-Level Marketing - Anyone Ever Participate?

Happyflowerlady said:
While I agree that the system of harrassing all your friends to join your MLM organization is a not a good way to go about things, I DO think that , by and large, MLM is a viable way of marketing a product. I think the key is making the opportunity available to other people that are actually interested in the products, or in the MLM marketing system itself.

The huge corporations that manufacture and sell most of the products in America, are also the ones lobbying in Congress to pass the controls on products, such as allowing GMO foods, and using questionable food additives.
Many of the companies who use MLM produce quality products, and rather than having to start stores to sell those products, they pay commissions to people like you and me, for marketing the products.
Peronally, I like this idea, and would as soon support a company that is producing a product that is healthier, than one that sells cheap products at cheap prices.

The wholesale price of the products are usually affordable, and it is the retail prices that are too high to easily sell the product. However, when people sign up, and become a wholesale customer, and the company pays a small rebate to the person who signed them up, everyone wins. The company makes sales, the signee gets good prices for quality products, and the person who took the time to sign them up also gets a further discount on their own products.

One company that I really like is the Melaleuca company. They have a system that is NOT MLM, so there is no selling required. You can sign up as a retail customer, and pay full price for delivered products, or you can then "sponsor" other retail customers, and receive a discounted retail price for your own products, and an override on what your sponsored customers purchase.
Basically, you sign up to buy your own products, and then sign up others who also want to just buy their own products; so there is none of the issues that come with being an "independant distributor" in an MLM company, such as Amway.

There is always a good side and a bad side to everything, and in this case, I think the good side outweighs the bad side.
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Your assessment of MMM is certainly a lot more balanced than mine. Irony here - I've been involved with Meleleuca products since, believe it or not, 1992. You're right, the products are very good. The only problem is to be a member you have to purchase a minimum amount of product every month and consequently it ends up being expensive as just about every cupboard around here is crammed with unused Gold Bars (the soap), tooth paste, Solumil or other product - we even have UNOPENED boxes of the 'minimum product' they send every month if we fail to call in our order. When the kids come to visit my wife pawns it off on them (whether or not they really want it) so even though we like the products in reality it has cost us a bundle over the years.

And I do admit my experience is skewed. I signed up with World Ventures a few years back - all I had to do was 'shred the experience' - and in doing so I worked myself silly pestering every one I knew eating drinking and sleeping it while I was mesmerized by the few at the top that were making tons of money. Setting up meetings, tying up evenings several times a week - ha - not work? In the end I decided it's just not worth it. - and I vowed, never again!!!
 

jrfromafar said:
Your assessment of MMM is certainly a lot more balanced than mine. Irony here - I've been involved with Meleleuca products since, believe it or not, 1992. You're right, the products are very good. The only problem is to be a member you have to purchase a minimum amount of product every month and consequently it ends up being expensive as just about every cupboard around here is crammed with unused Gold Bars (the soap), tooth paste, Solumil or other product - we even have UNOPENED boxes of the 'minimum product' they send every month if we fail to call in our order. When the kids come to visit my wife pawns it off on them (whether or not they really want it) so even though we like the products in reality it has cost us a bundle over the years.

And I do admit my experience is skewed. I signed up with World Ventures a few years back - all I had to do was 'shred the experience' - and in doing so I worked myself silly pestering every one I knew eating drinking and sleeping it while I was mesmerized by the few at the top that were making tons of money. Setting up meetings, tying up evenings several times a week - ha - not work? In the end I decided it's just not worth it. - and I vowed, never again!!!
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This sounds SO much like the autobiography of an ex-Amway Double Diamond I read a while back. His entire life was taken over by the quest for more recruits - his wife almost divorced him, he started getting medical problems, he got involved in lawsuits - he finally left, but he said it was like leaving a cult. For the first few weeks after leaving he didn't know what to do with his life, he had no friends outside the organization, they were even sending goons after him ...
 
SifuPhil said:
If memory serves though, Happy, didn't Melaleuca undergo some investigations a while back? I see they have more than a few negative reviews on review websites such as this one.
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The webpage you posted is one of those websites that have "disaster stories" from people who had a bad experience with a company, and I believe that you could put in just about ANY corporation name in their search, and find people who have had a bad experience with that company.
The Better Business Bureau rated Melaleuca at a 3.5/5, which seems to be like a very fair rating to me.
http://www.bbb.org/boise/business-r...n-idaho-falls-id-1000001768/customer-reviews/

With so many MLM companies out there, there are bound to be some good ones and some scams. Kind of like finding a real friend, or a spouse; you might go through some of the wrong ones before finding the one that is right for you.

And yes, Melaleuca does ask for a minimum order to stay active and get the lowest prices, but you are not required to do that. I had to put mine on the basic membership when we moved out to the country because all the money was being used up by the moving itself.
Now that I am pretty much moved back to Huntsville, and stabilizing; I will probably reactivate my membership again.
I really like the vitamins that they have, and never had any trouble in using my monthly products when I was buying them, and because of the concentration of the products, many actually saved me money over purchasing them from the store.

I am certainly not promoting MLM as being right for everyone, but neither do I think all MLM companies are a ripoff.
I think if the company has products that you enjoy using, and not just something you are looking at as a way to get rich, they can be a very good thing, and also support an American-made business.
 

Not for nothing (as we used to say back in the 'hood) but Better Business Bureaus have all the striking power of a powder puff.

burro1.jpg

The BBB is pretty much viewed as a paper tiger by most businesses I'm acquainted with.

But yes, I agree that there have to be some good MLMs out there - I've just always had a hard time finding one that wasn't warped in some way, and always to the detriment to the distributor/member.

Remember also that I'm a monk = not many friends or family = a tough sell. ;)
 
SifuPhil said:
Not for nothing (as we used to say back in the 'hood) but Better Business Bureaus have all the striking power of a powder puff.

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The BBB is pretty much viewed as a paper tiger by most businesses I'm acquainted with.

But yes, I agree that there have to be some good MLMs out there - I've just always had a hard time finding one that wasn't warped in some way, and always to the detriment to the distributor/member.

Remember also that I'm a monk = not many friends or family = a tough sell. ;)
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That's the whole deal about MMM - at these meetings, they have you write down a list of everyone you know - friends, family, even the people you do business with. No one is exempt. Instead of friends being just friends, you see the $$ dollar signs in their eyes. They'll teach you to tell them just enough to make them feel they have to come and hear this great opportunity. "You like to travel don't you? Here's a way to travel for free". Yeah right. To make money you have to live in the hype. Talk about sapping your energy.

As for good MMMs - yes, perhaps decent products. if it truly is a product based business and not based upon recruitment fees. But with Melaleuca - the thought comes to me - if it's so good, why isn't it in the store right next to Colgate and Proctor and Gamble products? Because their concept is to get people on auto debit - that sucking sound is the money being sucked right out of your checking account !!!! I'd rather just go to the store and buy what I need and want !
 
jrfromafar said:
That's the whole deal about MMM - at these meetings, they have you write down a list of everyone you know - friends, family, even the people you do business with. No one is exempt. Instead of friends being just friends, you see the $$ dollar signs in their eyes. They'll teach you to tell them just enough to make them feel they have to come and hear this great opportunity. "You like to travel don't you? Here's a way to travel for free". Yeah right. To make money you have to live in the hype. Talk about sapping your energy.
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And they even go beyond that - they teach techniques where you embarrass, taunt and bully the prospects ... "you must not love your family, since you're passing up this wonderful opportunity".

Like I said, my friend got into it and I actually SAW his personality change. It was like watching him being absorbed by an alien - very scary.

As for good MMMs - yes, perhaps decent products. if it truly is a product based business and not based upon recruitment fees. But with Melaleuca - the thought comes to me - if it's so good, why isn't it in the store right next to Colgate and Proctor and Gamble products? Because their concept is to get people on auto debit - that sucking sound is the money being sucked right out of your checking account !!!! I'd rather just go to the store and buy what I need and want !
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The guys I checked out, Watkins, have a program where they place a few select items into places like Wal-Mart and Walgreens, supposedly to educate the public about what wonderful items they are. The bad part is that the distributors lose out on sales through this tactic, even though the home office swears they don't. So you get undercut by your company - not very reassuring.
 
SifuPhil said:
And they even go beyond that - they teach techniques where you embarrass, taunt and bully the prospects ... "you must not love your family, since you're passing up this wonderful opportunity".

Like I said, my friend got into it and I actually SAW his personality change. It was like watching him being absorbed by an alien - very scary.
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I don't doubt it. Then - once you deplete your "circle of influence" and realize there is no free lunch in this thing, if/when you toss in the towel since it's COSTING you money instead of making you money, you have to walk around with egg on your face when you come in contact with your friends - who have gone on the defense when they see you!! Who needs that!

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Yep, totally agreed.

It's a shame because even if there are honest companies out there, the industry as a whole has such a bad rep from years of abuse that people like you and I would be afraid to get involved in it.
 
As per "Miracle Manure", and MMM, here's an article I wrote some time back:


Having background in all sorts of sales including MLM, I have learned the cardinal rule. If you are considering MLM, the sooner you learn this the better: “Anything works if you do”. Do you get it? If you work hard enough, you can make a living selling horse manure. Package it up, get some gimmick, and go for the gusto.

Years ago I sold life insurance. I represented a company that offered rates so low that it stripped the socks off of the Big Boys that were building the sky scrapers in Manhattan and Chicago. I would tell people, “when you strain your neck so much that your lower lip get sunburned looking up at the top of the skyscraper, ask yourself where they get the money to build that monstrosity- it’s overpriced policies!”. Yet those companies stay in business, and keep building skyscrapers, year after year, by revenue from overpriced policies. I soon realized that it’s just agents out there overcoming the negative factor. I was told that very few life insurance agents work forty hours a week. Why? Because very, VERY few people can stand the negative factor. If they could, everyone would be doing it, and making a six figure income. If you’re considering buying into a MLM system, be prepared for a whopping negative factor. That is why the failure rate is so high, most people cannot overcome it.

Before you plop down your money, be sure to read the fine print, the INCOME DISCLOSURE STATEMENT. By law, MLM companies are supposed to show you their IDS. You can see for yourself the percentage of people making any substantial money.

As far as MLM is concerned, there is no reason why you cannot be one of the one or two percent of the people that make any substantial amount of money. If you don’t like those odds, forget it. Don’t get mesmerized by the hype- the former waiter telling you that he is making more in one month than he made all year in his former job. Is it possible that you can make that kind of money? You certainly can, IF you can beat the odds, and overcome the negative factor. Again, anything works if you do. Be prepared to eat, drink and sleep the program. Are you willing to do that? If not, forget it.

Another lesson that it’s important to learn is, ‘a new broom always sweeps clean’. It’s always great at first. You can eat, drink and sleep just about anything for a couple of months. But if you’re going to make this work, be willing to go the distance. In MLM, it’s all about leveraging yourself. Nothing wrong with that. But don’t think you can do it long enough to get some other people kicking butt so you can sit on the beach sipping your margaritas!


So if you don’t like the odds, and you’re not willing to go the distance, FORGET IT. Go sell horse manure.

Speaking of, have you heard about MIRICLE MANURE? With the downturn in the economy, everyone is bound to start a garden, right? This is the ticket… MIRACLE MANURE is what every garden needs. Get started now, only $399.99 for your own personal horse manure business. .ww.invest-in-shi……com....
 
Interesting thread....I was glad to read that someone actually uses/used Amway products. I have never had anyone approach me to sell me anything they make, only to entice me to sell (in the most devious ways at that!) Selling anything multi-level is just not me. But I've always wondered why their products weren't promoted more, don't know anyone who has ever mentioned using them.
 
There is one product i would buy from Amway and that is their toothpaste, it is brilliant you only need a small amount and no after taste if you wish to have a coffee or tea straight after, it may seem more expensive but as you only need about half of a pea size it works out reasonable.
 
As per jr's excellent article, you have to have the proper personality to succeed (or even survive) in MLM. I've never had that personality so I know to stay away from it.

Actually I shy away from most things that have a 1% success ratio, especially when they demand mindless adherence to a corporate culture.
 
SifuPhil said:
And they even go beyond that - they teach techniques where you embarrass, taunt and bully the prospects ... "you must not love your family, since you're passing up this wonderful opportunity".

Like I said, my friend got into it and I actually SAW his personality change. It was like watching him being absorbed by an alien - very scary.

This is all so true, Phil. I've observed a few who were so brainwashed, you could hardly bear to be around them...definite personality changes. And then those that wised up and ran like hell!



The guys I checked out, Watkins, have a program where they place a few select items into places like Wal-Mart and Walgreens, supposedly to educate the public about what wonderful items they are. The bad part is that the distributors lose out on sales through this tactic, even though the home office swears they don't. So you get undercut by your company - not very reassuring.
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This is all so true, Phil, re Amway. I've observed a few who were so brainwashed, you could hardly bear to be around them...definite personality changes. And then those that wised up and ran like hell!
 
My wife has been involved in an MLM for about a year. There are some characteristics of MLM companies that you should look for to make sure that there is a real opportunity.
1) the product should be attractive to consumers even if there was not a business opportunity
2) there should not be a "buy in" just to become a distributor
3) find a company that has less than 150,000 existing distributors
MLM can be a good business but be careful if you are told it is easy money or quick money
 
I knew a long time ago that I wasn't a sales person and all of these appeared to be scams to me with the only one making any money the first guy who started it. I'd rather take my chances with self publishing.
 
A couple who happened to be accountants hired on a consulting basis approached me once and invited me to a business opportunity presentation. I had a high level of respect for them and I was flattered by the invitation. What I resented the most was the level of deception really. They admitted they would never let anyone know ahead of time that this was related to Amway because people would not want to come. He borrowed someone's Mercedes Benz to make it look like he was making a lot of money already. I was pretty disappointed by the way they approached this and felt dumb sitting there knowing they basically lied to get me to be in that room. Was this something that I wanted to do to other people in order to make lots of money? No - money is not everything and I want to be happy whatever it is I do for a living.
 
I know of one multi level marketing company thats great.You really dont even need to sign up anyone to make good money tho I have signed up a couple ppl over the last few years.It's advocare.I use a lot of the products and then people started asking me what I was using I was losing a little weight so I signed up and started selling a little here and there I have had some pretty good months and can see where if you wanted to sample the products you could generate a good amount of income.I went to one house meeting after signing up but it wasnt something I wanted to do .never had a hassle from any of my upline.
 

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