MLM multi-level marketing (network marketing) have been PROVEN time and time again, to be scams.
The only people making any money, are the people who own the MLM, who started it.
MLM people lie constantly, to get new recruits.
They will lie saying they make 100x what they make to try to enrol you underneath them.
They even have deceptive pay-stubs, which appear to be large "net income" but are actually gross income, before they have to pay most or all of that in expenses.
They will constantly lie, and tell you their MLM is difference, and trick people telling them they will get rich, and be able to retire from all the people they enrol.
Its a scam.
And all of the MLM's now use numerous tactics to dupe people into buying their training materials, and spending more than they could ever make. They usually become very cultish.
SKEPDIC multi-level marketing (a.k.a. network marketing & referral marketing) [www.skepdic.com
Multi-level marketing is system of marketing which puts more emphasis upon the recruiting of distributors than on the selling of products. As such, it is intrinsically flawed. MLM is very attractive, however, because it sells hope and appears to be outside the mainstream of business as usual. It promises wealth and independence to all. Unfortunately, no matter what the product, MLM is doomed to produce more failures than successes. For every MLM distributor who makes a decent living or even a decent supplemental income, there are at least ten who do little more than buy products and promotional materials, costing them much more than they will ever earn as an MLM agent....
At the turn of the century, the average Amway distributor earned about $700 a year in sales, but spent about $1,000 a year on Amway products. Distributors also have other expenses related to the business, e.g., telephone, gas, motivational meetings, and publicity material (Amway.com; Klebniov 1991).
The reason MLM schemes cannot succeed is because MLM marketing is, in essence, a legal pyramid scheme. The basic idea is for a sales person to recruit more sales persons. This is very advantageous to those who own the company and supply the products, especially since the sales persons in MLMs are also customers. But it is puzzling why a sales person would think it is to his or her advantage to increase the number of competing sales persons.
Edited 1 time(s). Last edit at 05/27/2009 03:18PM by The Anticult.