Why Is MLM So Hated?

[dmcnabb]

I just wanted to give some of my personal experience on mlm and what I have seen in the industry. I saw my parents do shaklee, amway a couple of others that I dont remember the name of. They made little to no money at them. Its not because they didnt try or stick with it, they just got in at the wrong time. My Dad is an entrepreneur he has owened several buisnesses and ownes 3 at this time. My parents are not rich but they have enjoyed a very comfortable living. So competence was not the issue. I got married and my wifes aunt got into maryk about 4 yrs ago. I rember the whole family was laughing and thought it was a waste of time. Now she is driving the cadillac (granted its pink) and earning around 60 Grand a year, not bad for part time work. Then 3 months ago my dad got into a mlm buisness and he is expecting to make around 4-5 thousand this month. And a personal friend of his started a couple of months earlier than him and her last three checks have been 5-6 thousand. So obviously I joined when I could 6 weeks ago. I have made back what I invested but I have not had any big checks yet. So I am not going to lie and make any false claims.


Here are some points to ponder and some complaints


I wont say what I am in unless I am asked about it in here. It drives me crazy to see people write and in the end they stick in a plug about thier mlm buisness. Stop trying to sell your buisness. Keep that on the bizopps section.

I like the argument that everybody at the top makes the most money in mlm.
And how is the place you work at or own any diffrent? Can a worker make as much as a manager. Probly not. And think about this, take a large company and you will see it is structured like a pyramid.


Social security is the biggest pyramid scheme out thier. Last one in is a rotten egg.

[Morpheus]

MLM is a good way for entrepreneurs in gaining experience what they do best: selling.

Everything an entrepreneur does has to be sold for any profit to be made, whether s/he is selling his services, product, talent, or ideas. This goes for any profession. Life is just a big seller's market. That's what people do when they apply for jobs, sell themselves by the hours. You gotta know how to sell if you want to win, but it doesn't mean MLM has to be full-time or even a permanent source of income. Plus MLM has Rich Dad's blessing, he got started as a Xerox salesman!!!!

[ginginca]

I didnt think so .. everything is network marketing,

Even religions are MLM. Christianity started with Jesus Christ ... who had his original twelve ... and so on and so on.

BTW, I have several friends that are MLM-ers. They make 6 figures plus.

One guy signed on with a brand new company earlier this year and made 28K in the first 90 days. Not bad!

Avon is MLM ... Mary Kay is MLM ... Tupperware ... Party lites ... but they don't seem to have that bad rap about being MLM.

[dgerik]

Sooo...

I love this discussion about MLM / Network Marketing...

I typically prefer the term network marketing but in the end it is all SALES

Every sales organization in any business is really at its very fundamental a 'network marketing' organization.

The EVP of Sales has 3-5 Senior VP of Sales who has 5-15 Directors of Sales who have 25-50 Managers of Sales who has 50-100 Sales Supervisors who has 100s if not 1000s of actual Customer Sales representatives...

Take a BIG BUSINESS like Dell Computer, Verizon, heck even Microsoft... SALES is not inherently bad or evil BUT NECESSARY...

Now, yes there have been a LOT OF SCAMS in the MLM / Network Marketing industry...but that is the SAME as any business... Hmmm lets see... Enron comes to mind and there are many, many other examples in all industries...

I think people gravitate to the MLM / Network Marketing because of the 'low cost' of entry. With a low cost of entry comes MANY, MANY get-rich-quick opportunity seekers... And this is ashamed, but it is the nature of the beast...

99.99% of these people would never be success in ANY BUSINESS they started as they simple do not have the necessary entrepreneurial mindset to establish, grow and maintain a successful business...

There has recently been a report put out by a fairly well respected 'guru' that everyone might want to check out...It's called the Internet Business Manifesto by Rich Schefren. Go to get the manifesto and the 'missing chapter'

http://www.strategicprofits.com/manifesto/

http://www.strategicprofits.com/missingchapter/

All in all...it is about a 75page read between the two pdfs...but it is WELL worth your time... There are many nuggets of great info in there. Especially if you TRULY want to pursue an entrepreneurial career...

[JustOneUK]

In general I hate their websites... if you want to run a business you should have at the very least...

some details of the product.
some details of the service.
some contact details on your website, you know.. like a name and an address, or even a phone number, perhaps even where you are based.

"Earn $5000++++week now sign up to my anonymous website by filling in the form and send me $20 as well" doesn't cut it with me.

I mean why the big secret about handing out a Kleeneze catalogue?

enlighten me, Plz.

[dmcnabb]

I also hate it when websites are vague in there descriptions, pricing ect...
Good sites show the buisness and products in good detail. I would think that if they are not very descriptive that they have something to hide and it would probly be best to stay away from them.

[Muddy]

if its legit cool, but this is an entrepreneur forum, not a "work as a salesman" forum. So shut up and go away.

[dgerik]

So Muddy,

Am I to deduce from your brief post... that you believe entrepreneurs are NOT suppose to be 'salespeople'???

If so... WOW!!! Maybe you need to get a bit more in touch with the essence of entrepreneurism and business in general.

Entrepreneurship is about the relentless pursuit of sales. I don't think anyone was proclaiming we should "work as a salesman"... But if you are going to be successful and it is just YOU in a solo-business just starting out...my question to you would be if you don't make sales WHO WILL???

Now, I think we may have strayed a bit off topic from the original inquiry about MLM / Network Marketing... and I forgot to mention yesterday... that Network Marketing is JUST a SALES STRATEGY... nothing more - nothing less.

It is just like the BIG 3 automakers running 0% interest loans, Dell computers offering cash rebates and free shipping... and yes the AMWAY guy selling and pitching his products and biz op.

While I am NOT an 'MLMer'... I have been in the past... and I have to say all the negative comments that I have read on this thread about MLM being a scam, for losers, etc, etc... Well, quite frankly, these comments are made from a perspective of ignorance (and that is not meant to be a smart-@$$) but to say, those that are making those comments do not TRULY understand the sales & marketing model enough to have been properly educated.

I guess I am saying before making an obvious BLANKET statement that encompasses and ENTIRE INDUSTRY...do some research, learn about the 'marketing model'. I'm not talking about this company or that company... I could care less.

But there is a REASON that major universities all across the world are teaching NETWORK MARKETING strategies in their marketing course, in their entrepreneurship business degrees and on and on...

So... just offering yet another perspective...

[Muddy]

So Muddy,

Am I to deduce from your brief post... that you believe entrepreneurs are NOT suppose to be 'salespeople'???

If so... WOW!!! Maybe you need to get a bit more in touch with the essence of entrepreneurism and business in general.

Entrepreneurship is about the relentless pursuit of sales. I don't think anyone was proclaiming we should "work as a salesman"... But if you are going to be successful and it is just YOU in a solo-business just starting out...my question to you would be if you don't make sales WHO WILL???

Now, I think we may have strayed a bit off topic from the original inquiry about MLM / Network Marketing... and I forgot to mention yesterday... that Network Marketing is JUST a SALES STRATEGY... nothing more - nothing less.

It is just like the BIG 3 automakers running 0% interest loans, Dell computers offering cash rebates and free shipping... and yes the AMWAY guy selling and pitching his products and biz op.

While I am NOT an 'MLMer'... I have been in the past... and I have to say all the negative comments that I have read on this thread about MLM being a scam, for losers, etc, etc... Well, quite frankly, these comments are made from a perspective of ignorance (and that is not meant to be a smart-@$$) but to say, those that are making those comments do not TRULY understand the sales & marketing model enough to have been properly educated.

I guess I am saying before making an obvious BLANKET statement that encompasses and ENTIRE INDUSTRY...do some research, learn about the 'marketing model'. I'm not talking about this company or that company... I could care less.

But there is a REASON that major universities all across the world are teaching NETWORK MARKETING strategies in their marketing course, in their entrepreneurship business degrees and on and on...

So... just offering yet another perspective...

Basically you are just a salesman work for SOMEONE ELSE!

en·tre·pre·neur Audio pronunciation of "entrepreneur" ( P ) Pronunciation Key (ntr-pr-nûr, -nr)
n.

A person who organizes, operates, and assumes the risk for a business venture.

[Danny_Boy]

Just to start this off, I am fully involved in an MLM that is incredible.
Why they are so hated is because people who get involved for the quick buck don't realize the name of the game is 1) Get 'em in 2) Keep 'em in and 3) move them along. Most see it as get 'em in. To really put a name to it, Amway just got a bunch of people in and motivated the crap out of people without giving them any solid information; they created "motivated idiots" and most who got in it would agree with me!! You are most likely looking at one right now, that would be one of the few reasons you would even start a chain like this.

Let me tell you a few thing to look out for:
1) The system: Is the system of the company delectable? The average sponsor rate of any MLM is 2.7 people. Does the system you're looking at allow the average person to succeed (but then again, you don't really want average people, 'cus average people quit when there is any challenge, but that is a different topic all together!!)?
2) The Plan: How much money is really in the plan? Do a lot of research. See what is a lot of money in a MLM is and how fast can you, personally, reach the level where you start getting paid, and be honest with yourself. Become a student of the industry.
3) The product(s): is it marketable now and what is the projection for growth? Let me tell you Health and Wellness is going to explode in the next 5 years!! Look at who's retiring...The baby boomers: the largest American demographic ever. If you can harness the buying potential of the baby boomers, you can get rich!!
4) The support/people/mentors: Who are you actually going to be doing business with? Who is going to be giving you advice and showing you the way? Are the successful enough in your eyes? I follow a piece of advice I heard from a man that leads my company: "Never follow the advice of someone making less money than you desire to make." If they really new the "key" to do something, it would already be done in their lives. Plus, if you don't like the people you're in business with, it'll be a job, and none of us want that.

My company would knock the socks off any other one out there, Traditional, MLM, whatever. The only reason people don't like MLMs is because they truly don't understand them. Their patents once knew a guy who's room mates sister tried to do this one thing and didn't make any money at it. But they forget to mention how successful she was at anything else either. I challenge anyone to find a better way than to put a couple K into something and be opperating in the black within a couple of weeks and go on to make a 7 figure gross income in your first twelve months.

Only 3% of the USofA are going to do anything big in their lives anyway. So why should the 3%ers allow the 97%ers shape their opinions about anything, especially where we should put our time, effort and energy. Those who are part of that 97% are just about any body we randomly meet. So be careful, we have to seek out the 3%ers, the ones who are really making things happening.

Any how, if anyone wants more infomation shoot me an e-mail at dbsmarketing@hotmail.com and we can arrange to talk. Thanks.

[bigmike]

I don't know why people hate Mlms, Maybe because the tried one or two and failed, Maybe because the heard others say the don't like them so instead of learning about it for themselves they just go along with their friends viewpoints.

I don't know of any other business that you can start cheap often $20-100 range and give you the chance to become wealthy.


p.s my day job is a pyramid scheme, but me and my coworks go everyday

[spyro]

Back the the original question. Why do people hate MLM's? I think you have misunderstood. I don't think the average person actually hates MLM, they just don't believe the hype. Most people are 9-5 sheeple that want a paycheck and want to go home. Anything that says make millions in 2 years is automatically suspect to any legitimate hardworking business person. Some MLM's are huge, legitimate and people make money. Most suck and just want you to pay an upfront fee and are misleading. I personally don't really like them but there is money to be made if people really want it.

[adamg]

what is MLM ?

[Juicelee]

I'll be honest with you i dont like MLM because it does prey on people and it sells the whole "get rich quick" idea to the masses I've been to soo many meetings and seminars dealing with them and they all have the same presentation with slight variations:

first talk about how exciting their company is

then talk about their accolades "we've been in (insert magazine here)" we have recieved (insert award here)

give testimonials

show a breakdown of the "limitless earning potential" and throw other huge numbers at you

slightly mention their start up fee

close with the "this only happens once in your lifetime, so what will you do?" speech


the same song just different covers

now in its defense I've seen only one person who suceeded with MLM it took him 4 years to do it but hes now married and had his last house built

on the other hand there was a guy I went to high school with who did the same program but he had gains for only the first year and a half in his buisness and the last time I saw him he was working at a temp place like I was

me personally, I was burned by MLM a few years back and it ruined my credit only because I bought into the whole song. I scraped up the money not realizing the big hole in the plan. at 19 years old I signed a contract that I didn't fully read which stated that i would pay a certain amount of money over a period of time. the fee for this service would accumulate to $5,000

they didnt explain amidst talking about all of the supreme gain how much money you would fork over in the first year excluding what you were contracted to pay them.

I'll always have a resentment toward MLM. now I would only use it today if there wasn't a huge upfront fee. I would use it just to learn the selling side of things for other ventures.

[babydoll4281]

hello, i am an agel member , it does take effort , just like anything else, i read through all the responces you have recieved , and most of them dont even understand MLM or they wouldnt have said what they did,, plz get back to me.... goldlightening_1@hotmail.com