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Multi-Level Marketing Is Truly Awful
#73

Multi-Level Marketing Is Truly Awful

Quote: (03-19-2017 09:16 AM)Seadog Wrote:  

Quote: (03-18-2017 10:19 PM)Rawmeo Wrote:  

Forget about MLM one second. Forget about online money making schemes. Forget about casino stuff. Focus on this ONE thing: Money is like a pie, and wanting to show people how to make money means there will be less left for you.

To me this says you don't understand even basics about economics. You for some reason seem to be thinking of a financial transaction as a "win-lose", when the true foundation of economic growth is the win-win.

An example I read is someone who sells farm plows. Buddy sells plows to a farmer, and this allows him to increase his production *beyond the cost of the plow*. The plow seller is better off from selling his wares, and the farmer is better off due to more net food. If he recruits others to sell in different areas, and perhaps charges them because it's such a kickass plow and they're going to make so much money, and they take it seriously and sell a bunch, every farmer they sell to, every salesman and the guy at the top is much better off. That's the essence of MLM, and akin to franchises or salesmen in general.

The issue arises when you start spending all your time recruiting instead of selling. These companies recruit people indiscriminately, and an old maid with 7 cats who spends her days hanging out with her 3 old maid friends and knows nothing about farming has no business selling plows. To target her for your "network" is predatory, and says you care nothing about your product, brand, or who represents you. This is where I think all the issues arise, and some of these programs seem to only have products in the sidelines to avoid it being a bona fide pyramid scheme. If your key interest was moving product, why would you put up barriers in the form of fees to people who want to sell for you?

What I mean bu "showing people how to make money" means giving away a technique to someone without getting any benefits for yourself. For example, if you teach people how to do affiliate marketing but do not have your own product, you're showing people how to take your share of the pie.

There MIGHT be a possibility with MLM business, but you said it: People recruit anyone just for the sake of recruiting. I used to recruit people for ACN - and while the company is technically not a pyramid scheme due to the presence of an actual product, we all know that all the money is made by recruiting. People recruited any random loser, who would then pay $500 to join, do nothing, and say that he has been scammed. There's money to be made, as long as you do what you have to do. And as long as you read the fine print.
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