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lowriskfortune | WHY DO PEOPLE THINK NETWORK MARKETING/MLMs ARE SCAMS? |
I think many people join networking marketing companies and think it's a get rich scheme. Maybe because recruiters lie to them. I also think many people do not do their homework because there are scams out there. However legitmate companies can be scams too - Enron and MCI come to mind
There are and will continue to be legitmate network marketing companies. Billion dollar publicly traded profitable companies like Avon, Mary Kay and Amway. These companies sell products that people find useful. These companies have produced multi-millionaires who have worked hard to make their money. There are other good ethical companies.
I understand the concerns people have regarding network marketing but many naysayers expressed concerns to Ray Kroc when he was selling the concept of franchising in the 1950s - McDonalds.
The question is should people interested in network marketing do their due dillegence prior to joining and understand it takes work or should they listen to naysayers? |
 |
 
Mexico4me
|
I would say that the main problem I see with people is that they think all MLM is a "Pyramid Scheme". I think if you asked, about 85% of these people don't even know what a pyramid scheme is. When people suggest I work a pyramid, I automatically ask them "What does a Pyramid Scheme mean?" Most of the time they can't really tell me.
I explain to them that we are actually the opposite of a pyramid in that we are an "Inverted Pyramid". There's room for only you at the bottom and room for everyone at the top. The only legal pyramid in the United States is the Army. Most don't realize that it is indeed a pyramid.
I believe that 100% of brick and mortar businesses are a pyramid. Only the guy at the top can make the big bucks, and as you get lower on the hiring scale, you make less and less, usually with no chance of ever earning anything close to the guy at the top. Oddly enough, people accept that and have no problem with that....that's where the entrepreneurs come in. They do not accept that. They want to be paid for what they are worth and they want to build residual income and create leverage. They just don't buy into the 45 year plan where you start working at 20, answer to everyone else all of your life, retire at 65 with nothing (many, many people retire poor) and wait for the government to support them in their golden years.
I also understand the concerns people have about networking as they have never been properly educated on the process. Anyone can buy a restaurant or a retail store, but not everyone can run it. If they don't have the education or the experience, they may fall flat...just like MLM.
The investment in MLM is always substantially lower than any conventional business, but you have to be willing to constantly learn and work at it every day. Those who aren't willing to do what it takes, label it a scam to make themselves feel better about their failure. True some companies don't offer mentors, but these days, almost all of them do. You just have to choose the business that fits your life and go after it. There are plenty of tools and mentors willing to help you but no one said it was going to be easy. Just like any other business. |
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yaktur
 |
If it walks like a Duck and talks like a Duck, it's usually a Duck. |
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love_mk_timewise
 |
Word to the wise: Don't just listen to a recruiter - their chief interest is signing up anyone with a pulse and a credit card to their "team" so they can earn money from the company based on how much inventory you buy.
They all claim that you can earn an "executive income" with relatively little work. But the reality is that fewer than 1% make more than $20K-$30K per year - and usually those are either the first ones in, or the ones willing to lie, cheat and buy their way to the top. Many of these folks are gambling with their own finances to quickly build a team that will then take over the heavy lifting of buying inventory from the parent company while the recruiter sits back and collects the commissions.
I can't emphasize this enough - do your own homework!!! Most recruiters for multi-level marketing (MLM) businesses are independent contractors so the parent company can't be held responsible for misinformation.
A good place to start is PinkTruth.com - the site was originally started to debunk myths and misinformation about Mary Kay, but also has a ton of info about other MLMs including:
Amway (Quixtar)
Arbonne International
Primerica Financial Services
Usana Health Sciences
Avon
Beauticontrol
Creative Memories
Mannatech
Pre-Paid Legal
Cookie Lee Jewelry
Herbalife
Lia Sophia
Longaberger
MonaVie
Send Out Cards
Silpada Designs
Stampin' Up
Team National
Don't get me wrong - I still use and sell MK products, but I learned the hard way that unless you're willing to "bend" your ethics and your integrity, you're not going to get rich on an MLM business. |
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Donald B
 |
Of course they are not all scams, however, they are all pains in the caboose. The entire concept is misguided.
And if you attempt enough of these programs, you will soon think the same way.
Good Luck |
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Spock (rhp)
|
thank you for your defense of your enterprise.
so what.
I think the proper standard should be the proportion of revenues and profits that comes from actual product sales to unrelated third parties. The standard I'm looking for is over 80%.
Under this standard, Amway/Quixtar doesn't cut it. This is obvious when you realize that most of Amway product sales are to their own people and not to third parties. [Why? because Wal-Mart undersells Amway every day and that's on a price per use basis too.]
Maybe Avon and Mary Kay meet a standard this high -- I don't know. Maybe Pre-Paid Legal does too. I don't know.
***
pyramid schemes don't work. they can't. the number of potential members in the world is limited. so any legit business has to sell primarily to outsiders. |
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yappyknappy72
|
Because you need to make an investment of your own money and you do not always make it back. That said, their are a lot of other investments that are not guaranteed that people have no problem buying into (i.e. stock market). So if you do your research and are good at sales, you could do alright. |
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somchy soon
 |
My opinion... people go into MLM without, as you say, doing their own due diligence. They are not familiar or aware of how to run a business and they fail because they don't understand the model or put the necessary effort into the business.
I know MLMs can be very profitable for some.. I know a guy that makes over $30,000 US every month... I have seen his checks!
But it isn't easy, and it won't come in a week or a month. It is not a get rich quickly with little effort thingy. |
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Arnold S
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don't do what they promise they'd do do u have a lack of good faithon there part but alway do ur home work those who don't look sometimes get took |
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Sandra D
 |
Ignorance, they make a decision based on what someone Else says or thinks without hearing the facts and then researching and deciding there are several very reputable one out there doing very well. The second reason is effort you need to work they go in with the assumption it is easy money it is a business and needs to be run like a business. People are closed minded to the difference between working hard for someone else and working hard for themselves. I worked for a large financial company that paid you bonus for bringing in people you got a one time bonus check if they stayed with he company more then 6 months people didn't have a problem with that however when it comes to network marketing it is a crime to get a commision for bring someone in training and supporting them to suceed.
My issue is with those that don't like them for whatever reason bad mouth them I know it is true with anything but I don't get it if it's not for you okay don't do it. I would never be a doctor but we need them same is true for any profession to each hisher own ........ |
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smithkline
|
Network marketing and MLM are the businesses setup for the earning of the money. The scams can be there may be because of the reason of the wrong policies of the recruiters and may be some of the people are not doing any homework. The yournetbiz is to be carried out very strictly so that there should be no loss of the money through scams. |
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