Network Marketing - Networking - Multi-Level Marketing - MLM - NWM - Pyramid Selling.
The reason I put this site together is to provide a reference site for anyone who is thinking of joining a MLM company or for anyone who knows someone involved in MLM and is concerned for them. I have included a number of links to other sites that may be of interest, for the prospective MLM'ers, friends and familys of people involved in MLM or even (if they are still reading) MLM workers themselves. I say 'if they are still reading' because I've probably alienated all those people involved in Multi Level Marketing (some prefer to call it Network Marketing) just by including the word "pyramid" in the title, but the truth of the matter, whichever way you look at it, is that MLM / Network marketing is a pyramid stucture, someone recruits you, you recruit several other people, they in turn recruit several other people and everyone makes money - or do they? What about all those people who are not at, or near, the top of the pyramid, will they be making any money? Probably not, because someone somewhere has to support the structure, so unless you are very near the top of the pyramid think carefully about getting involved as the chances are you will lose money. Even if you are near the top of the pyramid only get involved if the fact that the money you may make will be very much at the expense of others does not bother you. (For an excellent paper on the comparison of network marketing to pyramid schemes look at the paper written by Jon M. Taylor Ph.D.)
Before all those involved in MLM/network marketing start protesting that the people at the bottom are still getting a product ask yourself this - would those people have bought this product if you had not sold them the near impossible dream of making 'pots of money' by becomming a distributor of your products, do they actually need or even want these products, could they get it cheaper at their local shopping center? Again before all those involved in MLM/Network Marketing start protesting that their products are of a superior quality to those available at the local shopping center ask yourself - what proof do I have - is there any independent scientific data to back up the claims for your product or do you simply believe what your company, or 'upline' tells you? (Note:- a distributor is responsible for the claims they make, both about the product and the business opportunities, even if they are only repeating the claims of their company - so there is some recourse open to you if you have lost money).
There are hundreds of MLM companies around, personally I have
come into contact with two, Amway and Sunrider. The strategy of both when
recruiting is, before anything else, to find out what motivates you (what
is your dream) and what you least like about yourself or your life and how
you want to change it. These are powerful tools used mercilessly to
recruit distributors of their products, so if anyone ever offers you this
once in a lifetime business opportunity to be your own boss, become rich
and help others in the process be warned - its probably another MLM'er on
a never ending recruitment drive. One other thing to note here is the
person trying to recruit you will be, and I guarantee this, over-friendly
and over-caring, but only so long as you are a potential recruit.
A simple case of mathematics
Someone involved in an MLM company called Sunrider once told me their plan was to get 2 directors in their "downline" each month and that they in turn were to get 2 of their downline to "director" level (classic pyramid structure or what!). Well, lets make an assumption here that it takes an average of 40 people in your downline to become a director (if you know differently please let me know) then after a single year you would have 327,600 people in your downline and after a mere 18 months you would have recruited nearly half the population of Great Britain (lets not even get into the economics of a saturated market).If it wasn't for the fact that these companies are destroying lives it would be quite an amusing story.
If, after all this you are still interested in becoming an MLM'er then before you sign on the dotted line you shouldlook at some other sites dedicated to exposing this industry. Your research will show you that there is an odds on chance of you losing money and that your family and friends will suffer too, most MLM'ers depending on other MLM'ers for friendship and advice as other relationships break down.
Other sites of interest
From time to time I will be updating the site but if you want to read more then please check out some of the links below. If you know of any other links then please e-mail me and I will add them to the list, alternatively e-mail me anyway with your thoughts.
Deja.com - Discussion group on sunrider (this is just one page - try a search on Sunrider from Deja.com)
Dr Chen behind bars (& Racketeering by Sunrider) (Some history on the founder of Sunrider - interesting reading)
|The Multi Level Mirage|
|Whats Wrong with Multi Level Marketing|
|Multi-level Marketing (a.k.a. network marketing)|
|Multisense - a quick test (A check list of questions you should ask yourself)|
|The Dark Side of Multi Level Marketing|
|The MLM experience! One persons view of life as an MLM'er, from my observations it's a typical view!|
|Amway - The Continuing Story - Lots of Links - including is Amway a Cult?|
|False Profits - Links to other sites - Click on the home button to find out more about the book|