[nocci01]

If they are scams...they're not MLM...they may appear that way but someone who knows MLM will spot those really quickly. Do some research and you'll know what to look for and what to stay away from. Money games aren't hard to spot. A true MLM company is not hard to find...but too many people think that MLM altogether is a scam...all you have to do is check out what the Federal Goverment (U.S.) defines as a legitimate MLM and what can make it illegitimate. Here a few pointers:

Illegitimate MLM

1. No products or services (or inflated prices)
2. No customers required for bonus payouts (headhunting outfit)
3. People on top makes all the money

In a legitimate MLM:

1. There are products and/or services that brings value to the market (price and/or effectiveness)
2. Customer requirement and/or product/service volume requirement in order to earn or stay active with the company (kind of like a quota - usually legitimate companies require at least 2 customers...some require more - a few distributors acquiring a few customers each)
3. In a legitimate MLM company, someone at the is sponsored by you can make more than you. I've seen people who make more than their sponsors or uplines in many MLM companies...regardless of start date or how old the company is.

[Howard321]

I sold Quixtar when I was in high school. I didn't believe in the products I was selling and ended up getting out before I left for college. I still have one my checks. It’s for $3.00!!!!!!!!!!!! Quixtar is not a total scam thought. Many people do make a decent living. I heard somewhere Quixtar produced more millionaires than any other company in the last ten years. I heard it from one of the members but I believe it.

[kcorder79]

I never really liked MLM's but I ended up in one a few months ago...the reason I signed up was for the product...I had never seen anything like it and I feel 10x better than I did before I used it. Of course they wanted me to sign up for $500 but I don't want to sell the product(and I do believe they do these thing to get the people at the top rich) but I got in for $35 so I could get the product at wholesale. MLM's are like monsters that suck in people and get them to spend their money and then throwing them to the wolves.

[nocci01]

It's not MLMs that suck people in. It's not MLMs that throw people to the wolves.

It's certain people in MLM. Obviously they are the ones who are not properly trained and do not have access to the right information. A good start is to do research and join the right company and make sure your sponsor knows what he/she is talking about...either that or they should know who you can go to for the right training. Most people that fail in MLM blame the company for their failure. Some companies have a flock of people earning big bucks while some have very few people. It doesn't matter what the product is or what company it is...what matters is where they're learning from. MLM is a business...not a 9-5. If you want free tissues and pens...9-5's will work. If you want to earn dramatic income in MLM...buy your own stuff...get your own training...no one's going to pay for your business expenses...stop complaining about having to spend money to get your business going...stop talking mess about an industry that could turn your financial world upside down (for the better!!!). Many who still have this belief that MLM is a scam...that limited thinking will keep them trapped forever. When they learn the true power of MLM...their lives will completely change.

Why does Robert Kiyosaki and Donald Trump recommend MLM? Why does Warren Buffet's Berkshire Hathaway own Pampered Chef (an MLM company)? Besides...I'd much rather get involved in an industry when most people aren't...then when they catch onto the wave. You are either going to get paid to Network or someone else will.

Before you complain about gas prices and your income...maybe you better learn how you can earn an extra thousand or two per month in MLM...then gas prices wouldn't hurt you so much would they? Then the car note wouldn't be that big of a burden would it?

Good luck to those of you who hate MLM...read anti-MLMers at www.FirstClassMLM.com

[stevekerp]

I have found one MLM that was at least not a rip-off. With most MLMs I've seen the bottom rung, and maybe the bottom two rungs, are upside down. Once you have two levels beneath you, you break even or make a little bit. But below you it's always churning ... people getting in, and people (a little poorer) getting out. I still have product from previous MLM 'opportunities' in my atttic. Stuff I paid a lot for with the 'guarantee' that it would be 'easy' to find people to buy them and start their own business.
The exception was Gano Excel, because the product (at the time) was excellent and fairly priced. And so worst case, you have coffee that you can drink. You could do the business without having to pay exhorbitant web hosting fees, annual dues were like $15. Gano brought in customers and dealers faster than they could produce coffee, prices and shipping delays both increased, and they had other problems. But when I got in, it was the ONLY MLM that you didn't lose money on right out of the gate.
What's above on this... that it attracts people into business who are not business people, is spot on. It attracts its share of DESPERATE people ... folks who really need an income stream (and financial management skills, too). These are not entrepreneurs. They burn through their 'warm market' in about two days, then start cold-calling, buying leads, and doing everything else that leads to rejection, frustration, and more debt. And then they bail. And their upline is too busy replacing them to train them. No real business can survive when the vast majority of the people they do business with wind up worse off because of it. I think there is some validity to the MLM model, but the average MLM opportunity has 'instant wealth' as part of its appeal, and a real business takes time to grow.

[alluwanted]

Why MLM is hated because the way it is forced upon the 'victims'. Many times people join MLM even without analysing themselves if they can sell. They think if they can sell to 5 or 10 people thats it and then you sit back and make money. It never happens.

There is a satuaration point where sales may not happen and many people in ground level lose money. And these numbers may be huge - say 10,000 people joined the MLM by paying say $100 and are unable to sell to any!!! It is a cool $1 Mil shared by the guys above them !!!

I have seen this bad trend in one Engineering college in India where a company introduced 'Computer courses' for something like $1000 and one need to sell to 5 others. And then the seniors in the college seem to have forced the juniors/freshers to become members and they made themselves rich. Is it not exploitation??

I consider that as a 'Cult' !

[dontheinfoguy]

I've been involved with MLM before myself. I don't hate it, I just don't prefer it.

[jmasters1691]

MLM and Network Marketing are simply means to get a product to a consumer without going through wholesalers and brick and mortar stores...what most people do wrong is that they ignore basic marketing concepts. Click on this link for a free e-book that is useful for anyone in Network Marketing regardless of the company they are with.

The 7 Great Lies of Network Marketing

[Bill Moran]

Bill Moran

Hi all

1) We are ALL sales orientated in ALL our lives - We SELL our skills to earn a living!!! we SELL our selves to find friends and that special partner.

2) What is a PYRAMID? Well firstly PYRAMID schemes are illegal - Read Burke Hedges book - Who stole the American dream this will give you an insight into the activities and mindset of those vile people who abuse our Free Enterprise System

Secondly EVERY industry / institution is in a PYRAMIDIAL structure - e.g. the Police force - The Senior Police officer, Several Assistant police Officers, Many Inspectors / Sergeants, The Chalk face Officers and their clients US the PUBLIC - so if PYRAMIDIAL structures were illegal shouldn't we inform our local constable about US!!!!

3) Direct selling is worth $100 BILLION and growing!!!!
People like Warren Buffet ? Richard Branson OWN and run Direct Selling companies -
These men are also involved in MLM!!!!!! - Are they CRIMINALS?
MOST of the $100 Billion goes through MLM structures or businesses

4) TRUE - there are Illegal ones - hang on don't criminals set up 'legal' Bricks and Mortar
based companies to steal OUR hard earned cash? Ask you parents and Grandparents
about 'Legal' Companies they know people worked for and when they came to claim
their 'Pension' it was not what they were promised - or even not their - Check out
the Pension Crisis in the UK!!!

5) Spam -who hasn't had an email from a source they have no wish to be connected to?
Ever been told you have won the Spanish Lottery - even though you didn't buy a
ticket?

6) Financial Advisors!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Why take advice from BROKE people?
How can a person earning double what you are earning MENTOR you into Financial
Freedom?

7) 85% of 'legal' Bricks and Mortar based companies fail!!!!!!!!!!!!!!!!


Just a few questions and facts, I hope this causes a stir and makes you start to
question the statements here. I was very lucky I was a CLIENT of a MLM company for
9 years before joining, the Support team are the best aspect if you have a good
Support team then success (this is different for us all!!!) is possible.

Bill Moran

[ibuzzmentor]

There is a big difference between MLM and direct sales. Direct sales models where only one person keeps the profit or maybe a modified 2 up plan where you split your first two sales are fine.MLM though makes you split sales all the way down and it is impossible to make a huge income that way. I prefer marketing high ticket items, with high profit margins, that have product that have real value to the end user. That is the way to go.