Is there anything wrong with the MLM business model?

**aberger** · 05-15-2009 03:38 AM

A lot of people are very biased against MLM. I know many of them are scams but is there anything essentially wrong with the Multi Level business model?

**gotbiz** · 05-15-2009 11:00 AM

Not the model but with the attitude of the MLM.
You yourself just made the statement "many of them are scams", that is the problem.

**clabrat** · 05-15-2009 11:16 AM

I would agree with gotbiz. Nothing wrong with MLM if it's legit. Good examples would be NuSkin, AmWay, Usana.

**aberger** · 05-15-2009 01:12 PM

Thanks foe the replies. So what makes an MLM legit? Many people claim there's all these formulas for determining legitimacy. Is it really this complicated? In my book something that provides a useful service to all clients is a legitimate business. What do you guys think?

**gotbiz** · 05-15-2009 02:09 PM

From personal business experience, our first iteration of gotbiz.com was an MLM.
Needless to say, we just finished a complete overhaul to remove the MLM because we spent the entire time just proving that we were legit. I actually had ppl tell us that they loved the idea but the MLM has too many negatives to get involved.
Better to make a model that doesn't use the MLM.

**nonrate** · 05-15-2009 02:17 PM

Originally Posted by aberger

A lot of people are very biased against MLM. I know many of them are scams but is there anything essentially wrong with the Multi Level business model?

Not at all, it's the ethics behind how it's sold that's bad. I have never seen an MLM completely explain how the system works logically. Instead, they try to hide how it works around your potential and how much you could make.

MLM's are great if you're the one starting them. Otherwise, I'd never join one, unless there was a method in the MLM system to compete with the one at top and replace them.

**gotbiz** · 05-15-2009 02:32 PM

Originally Posted by nonrate

Not at all, it's the ethics behind how it's sold that's bad. I have never seen an MLM completely explain how the system works logically. Instead, they try to hide how it works around your potential and how much you could make.

MLM's are great if you're the one starting them. Otherwise, I'd never join one, unless there was a method in the MLM system to compete with the one at top and replace them.

Another point...
Human nature, they're making money off me....

**nonrate** · 05-15-2009 03:20 PM

Originally Posted by gotbiz

Another point...
Human nature, they're making money off me....

Actually I'm ok with people making money off of me when the ratio is something I deem fair and the other person making money off of me is providing a valuable exchange. So, if I have a sales agent that brings in a lot of good work and good customers and good rates, I am more than happy they are making money off of me, and I want them to make a lot, because they are also a continuing source of revenue generation.

In an MLM, the person at the top of the structure has done little more than give me a platform to make money. Worse, his directs and everyone else in my upline has done absolutely nothing of value for me. Why do I want to give money to those that have not given anything I deem of equal value in return?

So when people say they don't like MLM's because other people make money off of them, they are not articulating their point fully. It's other people making money off of them without providing any equitable value in return they don't like. And yeah, I find that a major problem myself.

**Gene** · 05-15-2009 04:46 PM

Absolutely not! Amway is MLM and legitimate!

Originally Posted by aberger

A lot of people are very biased against MLM. I know many of them are scams but is there anything essentially wrong with the Multi Level business model?

**gotbiz** · 05-15-2009 04:52 PM

Originally Posted by nonrate

Actually I'm ok with people making money off of me when the ratio is something I deem fair and the other person making money off of me is providing a valuable exchange. So, if I have a sales agent that brings in a lot of good work and good customers and good rates, I am more than happy they are making money off of me, and I want them to make a lot, because they are also a continuing source of revenue generation.

In an MLM, the person at the top of the structure has done little more than give me a platform to make money. Worse, his directs and everyone else in my upline has done absolutely nothing of value for me. Why do I want to give money to those that have not given anything I deem of equal value in return?

So when people say they don't like MLM's because other people make money off of them, they are not articulating their point fully. It's other people making money off of them without providing any equitable value in return they don't like. And yeah, I find that a major problem myself.

Ok, they put the machine together and did all the work until you showed up, that has to count. Just because you weren't there for the all nighters and dreaming it up and planning it and all the work that went into it you can say that they shouldn't get their share of your profits. And that is exactly what I meant.