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Thread: Multi-level Marketing Detritus

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    Default Multi-level Marketing Detritus

    One of my friends, along with his wife, would like to sponsor me for some MLM thing they've become involved with for a little over a year. Trouble is, I believe neither in MLM or the product, in this case some kind of prepaid legal plan. I just can't see this, as I had to have some simple legal work done earlier this year, and only had to pay the attorney once for one hour of his time. I don't have to pay an annual fee. And if I did need to have an attorney from time to time, I'd rather pay a retainer to one I know, rather than play the "attorney lottery" from a pre-paid legal plan.

    I'm also pretty skeptical of MLM in general, due to one of my late relatives being involved with both Amway and Shaklee over approimately five years.

    I'll be politely declining my friend's offer, but wonder if anyone here has experience with MLM, both pro and con.

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    Default Re: Multi-level Marketing Detritus

    Generally speaking, all these things profit the organisers at the expense of those doing the marketing and - of course - the occasional end-line customer. I say stay away, and that's without hearing further details, even.

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    Default Re: Multi-level Marketing Detritus

    I'm a member of three network marketing companies. Not because of the money, but because I like the product. PrePaid Legal (which may be the one you are referring to) I used to be a member of but dropped when they screwed over a good friend of mine who was in their top income earners. He was charged with a crime to which he was eventually aquitted of but during the trial, they locked his account and refused to pay him money that was legally due him. He had to explain to an organization of attorneys that in America, you are innocent until proven guilty. When the charges were dropped against him, they suddenly wanted to be his best friend again and he told them to go take a hike (in a much less polite way).

    Being a public speaker, I'm approached by network marketing companies all the time. Sometimes as many as 3-4 a week because they all want me in their downline because they know I'll go in front of an audience and pitch their product. That's not my thing.

    The current Xango/Mangostein Juice nonsense craze are probably the most annoying ones right now. There seems to be a new one of these every week now. Their products are way overpriced and the science behind them is weak at best. One of my favorite Xango stories is one of my best friend's father lives in the Phillipines. When he heard that Americans were paying $25 a bottle for Mangostein juice he couldn't stop laughing for 15 minutes. His exact quote were, 'You morons are paying for this stuff you think is rare? I've got those damn mangostein plants growing all over the place here. Most people around here consider it a weed and a nuissance."

    Then you have some network marketing companies that promise you the moon and never deliver. If you are going to join a network marketing company and do not have access to pitch it to thousands of people a year, you'll never make good money at it. It's just the way the numbers work, even under a great comp-plan. So if you are joining one so that you can retire off the income, you're reading someone's hype way too much. The worst of these offenders is probably Primerica which is a subsidiary of Citibank. These guys are lower than ambulance chasers and used-car salesmen. All their reps claim they are making $400K a year but are driving beat-up 1993 Hyundais.

    I do, however believe that there are a few network marketing companies that offer products not available anywhere else and are legitimately good companies. Unfortunately they are clouded by so many of the bad ones. The bottom-line is, do a LOT of research in the product and if the product is good, then join up. If you make a few bucks along the way, even better. One of the best dead givaways of a bad MLM is if you type in the name of the product in Google and the top ten results come back all about "MAKE MONEY SELLING XYZ". If they are more concerned about getting new reps than they are about supporting their product, run for the hills. Research into the product though is the key, and don't fall for any "You'll be a millionaire in a week selling our product" claims either.

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    Default Re: Multi-level Marketing Detritus

    I'd be careful.

    I have always been entrepreneurial and have researched a couple in the UK. I just couldn't see it myself. I would imagine that there are some very reputable and good quality setups. But unless you find one, I'd avoid it.

    Plus, you need to be mega motivated to make it work. Some of my best friends in the UK used to do one and they worked like mad, but would have been much better off with a second job.

    If you do it, good luck.

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    Banned Melonie's Avatar
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    Default Re: Multi-level Marketing Detritus

    a Ponzi scheme in 'sheep's clothing' is still a Ponzi scheme ... fantastic if you get in at the top position in the 'pyramid', break-even in the middle, and a guaranteed loser at the bottom. The company failing to deliver as promised only makes matters worse.

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    Default Re: Multi-level Marketing Detritus

    I fell for one of these once...ended up selling bottles of cheap perfume on the streets of Bridgeport in order to qualify for a management position. Needless to say, I wisened up and quit after less than a week. These people are slick, though. The scame places often have offices that look like they've been thrown together quickly under the guise that they've "just opened." Lots of cheers (I kid you not) and nonsensical marketing ideas thrown together with hiphop or techno music in the background.

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    Default Re: Multi-level Marketing Detritus

    Oh my god, MLM is my current nemesis. I actually went to a Pre-paid legal seminar a couple of years ago with this guy because he was cute. Nah!

    I have some current clients who are already "the millionaire next door", but are well on their way to losing it all with their MLM company and junk bonds, of all things. Its like taking 25 years of hard work and saving, and just throwing it into a bonfire. And they aren't even Aggies!!

    Another prospective client is trying to get me to sell his "Noni juice" I wish it were something dirty but it isn't.

    Yick, yick! Read PJ O'Rourkes "Eat the Rich." He discusses how a Ponzi scheme corrupted the entire country of Albania!

    Stay away...

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    Default Re: Multi-level Marketing Detritus

    oh god somebody who lives by me has a Noni Juice sign on their car. I hate MLM.

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    Banned Melonie's Avatar
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    Default Re: Multi-level Marketing Detritus

    Ponzi Scheme 101 from the US court that tried him...

    (snip)"The engine of Ponzi's postal coupon fraud was a simple accounting mis-classification. Money paid to investors, described as income, was actually distribution of capital. One need not, however, invoke accounting terminology to describe the fraud. Bankruptcy Referee Olmstead observed: "It was another instance of robbing Peter to pay Paul, of which the past affords examples," and wryly described Ponzi's business as that of "Borrowing money from investors at usurious rates of interest" [In re Ponzi, 268 F. 997, 1000 (D. Mass 1920)]. Circuit Judge Anderson explained: "His scheme was simply the old fraud of paying the earlier comers out of the contributions of the later comers" [Lowell v. Brown, 280 F. 193, 196 (1922)]."(snip) from

    While it is now illegal for an 'individual private citizen' to do this, and illegal for a business to do this, it is NOT illegal for a government to do this !!!! - but that's a whole 'nuther story !

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    Default Re: Multi-level Marketing Detritus

    Quote Originally Posted by Melonie
    a Ponzi scheme in 'sheep's clothing' is still a Ponzi scheme ... fantastic if you get in at the top position in the 'pyramid', break-even in the middle, and a guaranteed loser at the bottom. The company failing to deliver as promised only makes matters worse.
    My thanks to everyone for all of your great advice! As I tried to indicate in my initial post, this doesn't interest me due to the experience of my older relative when I was a teenager. So I'll have to pass on my friend's offer.

    As to the Ponzi scheme, unfortunately, there is no way to extricate oneself from Social Insecurity, short of repeatedly running for, and winning, a seat in either the U.S. Houre or Senate.
    Last edited by PhaedrusZ; 08-05-2006 at 02:22 PM. Reason: typos

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