I've got a buddy who is obsessed with network marketing right now. He's hardcore into his Usana vitamin products. I tell him network marketing is just a big pyramid scam that's legalized and he argues with me and talks in circles. I tell him all these logical reasons and explain that their goal isn't even to sell vitamins but just keep hiring people under them and the process goes on!! Anybody have any experience? BTW I am not putting my foot in the water or anything like that with it.
I was a promotional writer in the marketing departments at two of the largest of these "multi-level marketing" outfits (two of the very best known). The level of cynicism at the very top of these companies pretty much put the lie on what they are all about: separating people from their money and pushing a cult of personality. (Remember the blowdried but now deceased Mark Hughes and his "Lose Weight Now! Ask Me How!" mantra?)
They're ersatz religions for people who are seeking to fill the voids in their lives.
In researching the statistics on MLM "distributor" income (as an assignment for the first such outfit for whom I was writing), I discovered that out of all the millions of people suckered into these schemes, only 3 percent make anything like a livable income from their endeavors.
A very fine legal line separates an "MLM" from an outright pyramid scheme. No matter, though: The money mostly flows from the "downlines" to the "uplines." Charter "distributors" make most of the money; newcomers make very little.
Your friend will lose interest in pretty short order, especially after he takes stock of all the money he has sunk into inventory he cannot sell.
I have done a little research in the marketing business and am wondering what the difference between these two types are. A good friend of mine has just started network marketing and I said that only three percent succeed in (MLM) and he said it was not (MLM) but (NWM). Anyway I told him it was too risky but he sounds motivated but I do not think he knows what he is getting himself into...
I'm not sure there is a difference. As far as whether or not he can make it work or not, I know that most people don't succeed, but it usually seems to be (at least from my experience) that they quit because it was harder than they thought it would be. I think those who are determined to succeed are MUCH more likely to make it.
\"Do not use to unclog a disposal drain.\" - On a box of Dynamite (from Joseph Howard)
They're all scams in one form or another. A guy I know came by my house once telling me how he's "retired" (he was in his late 20's at the time), and oh, would I like to buy an air filter?
The air filter people told him after signing up that he was retired, and he believed them. He bought a bunch of air filters at "discount" price and tried to sell them to everyone he knew. That's a funny definition of retirement.
Last I heard he still owned a dozen air filters at $600 a pop that he couldn't unload, and he finally quit telling people he was retired.
Not sure if this qualifies, but some guy at work has been trying to enroll me into this Prepaid Legal Services thing. It's a big legit company it seems, but the whole things seems quite fishy, mainly due to the somewhat oily nature of the gentleman in question.
My wife is currently being recruited by Mary Kay. Well, they're trying...
I'm trying to not discourage her, but give her some facts about this and let her make her own decision. If anyone has any information specifically about this company, I'd like to hear it.
Different terms for the same thing. Perfectly legal, as long as they're set up properly; one of the key things is that there are actual products being sold, rather than just sending money around. I think a person's chances of success at it depend a lot on how good a salesperson they are. You have to be good at persuading others to become dealers, or sell a ton of product yourself, to make a living at it.
All of them, no matter what fancy moniker is appended to each.