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MLM

I'll be really brief about my personal experience. 20 years ago or so, an acquaintance from my hometown who had just received a military discharge got in touch with me and to some extent used our shared past to get together to talk about new ideas from the future. This fellow had gone through several troubling personal transformations in a short time and I was curious to see him, so he came over and described his new business. Didn't mention Amway early on, but once he figured out I didn't have a problem with that I said "what the hell" and signed up as one of his new downlines or whatever they called them. I was single, didn't need a lot of cleaning products, but bought a few boxes of things I wanted from their offerings. I liked the products and used them, bought some more, etc. I never wound up selling anything or getting a downline of my own, mainly because I was busy with my day job. He kept in touch occasionally, loaned me a few motivational tapes and let me know of some big "events" in the region, but I wasn't too interested in that. Mainly because I wasn't interested in having a second job (no matter its nature) and also personally I found the emphasis on material gain to be a little thin. I don't really want a big house, fancy car, etc. and my social life was fine, so those motivations weren't there for me. Eventually by doing nothing, nothing happened, and I moved, etc. Amway never bothered me, and I didn't bother it, and although in those pre-Costco days I never saw huge savings on products suddenly appear, I was very happy with the products I bought and used. That spray cleaner concentrate was really pretty good!
 
I've never had an Amway person approach with an offer to sell me products. They are only ever interested in recruiting me. They're selling the business not the products.

Why can't you see the difference?

Who says I can't see the difference?

Why do you think your limited experience gives you the right to imply I'm lying about what I personally do and my experience?
 
I'd like to point out that it's entirely possible for someone to not be lying but to simply be wrong.
 
My cousin sold Arbonne for a while and tried to get me involved. The biggest problem I saw was that she has already approached 70% of the people I knew since she used every social gathering to mention it.

Normally in retail, you try to keep your competition low. With MLM's, part of the process is to recruit your own competition. That just doesn't make sense.
 
My cousin sold Arbonne for a while and tried to get me involved. The biggest problem I saw was that she has already approached 70% of the people I knew since she used every social gathering to mention it.

Normally in retail, you try to keep your competition low. With MLM's, part of the process is to recruit your own competition. That just doesn't make sense.

I am not defending MLM's, but when you recruit competition, they are no longer competition. They are your salespeople. Think of it as buying out the competition.
 
My cousin sold Arbonne for a while and tried to get me involved. The biggest problem I saw was that she has already approached 70% of the people I knew since she used every social gathering to mention it.

It would be tiresome if someone did that with ANY business or career they were involved in.

Normally in retail, you try to keep your competition low. With MLM's, part of the process is to recruit your own competition. That just doesn't make sense.

No, it doesn't make sense. It's also not really true. Many businesses have both wholesale customers (who resell to consumers) and retail customers (who are the consumer). Selling to a wholesale customer is, strictly speaking, "recruiting a competitor" since they compete with you for retail customers.

Does it "make sense" to you that PepsiCo sells Pepsi direct to consumers (retail) through it's own outlets (eg KFC), but also "recruits" wholesale customers who compete for the same consumer market?

It's no different - they're "recruiting competitors".

You're still profting from wholesale sales, you're just lowering your markup in return for greater marketshare.
 
It would be tiresome if someone did that with ANY business or career they were involved in.



No, it doesn't make sense. It's also not really true. Many businesses have both wholesale customers (who resell to consumers) and retail customers (who are the consumer). Selling to a wholesale customer is, strictly speaking, "recruiting a competitor" since they compete with you for retail customers.

Does it "make sense" to you that PepsiCo sells Pepsi direct to consumers (retail) through it's own outlets (eg KFC), but also "recruits" wholesale customers who compete for the same consumer market?

It's no different - they're "recruiting competitors".

You're still profting from wholesale sales, you're just lowering your markup in return for greater marketshare.

I'm not sure that analogy works. Pepsi parcels out areas to give to salespeople. All businesses within that area deal with the same person who may have employees under him to do some of the legwork. If one of those employees is very good at legwork, he might be given his own, separate area.

It's not like Pepsi gives one area to a person and then tells them that they need to buy the products up front and find their own volunteer employees who will be paid by selling their own Pepsi products which they, too need to purchase up-front.
 
I'm not sure that analogy works. Pepsi parcels out areas to give to salespeople. All businesses within that area deal with the same person who may have employees under him to do some of the legwork. If one of those employees is very good at legwork, he might be given his own, separate area.

If one of that salesperson sells Pepsi to a corner store, is or is not that corner store in competition with the KFC over the road that also sells Pepsi and is owned by PepsiCo?

Are they not thus "recruiting competitors"?

It's not like Pepsi gives one area to a person and then tells them that they need to buy the products up front and find their own volunteer employees who will be paid by selling their own Pepsi products which they, too need to purchase up-front.

I'm not sure what the relevance of this is? This doesn't happen in MLM either.
 
Where do all those Amway-MLM products go? I think that's the question. Totally honest, if I had a chance nearby, from a friend, to buy products of a quality I enjoy... I'll buy the next product I'm offered, for a nice price, just to give the old Al Gore "finger" to the Walmart or the Chinese Imports or the Bush Administration or something else I might dislike for whatever reason I'm supposed to hate commerce or retail in general. I can't "grow my own." I gotta wipe my behind. Must buy product=toilet paper, for instance. If the company making the toilet paper I need is against my politics, I'll still buy the butt-wipe-product from them, if the price point is right.
 
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My experience with MLMs is with Melaleuca but Amway seems to work in a similar way. I do see the cult-like influence of those MLMs. The people they recruit are sold into a lifestyle as well as many products. Anytime someone has a complaint about how they were treated by customer service reps when trying to return a product or cancel their membership the Pro-Melaleuca people lambaste the person for not doing their homework first or trying to claim that it was just one person and shouldn't reflect on the whole company but there are many complaints like those and it sounds like its set up to make it hard to return items or cancel your membership. For Melaleuca you have to send a certified letter through snail mail, fax and you have to talk to them on the phone just to cancel. Its easy to sign up but they make you jump through hoops to cancel. People like to use the argument that Sam's Club makes you buy a membership but its a bad analogy because Sam's Club isn't expensive and you aren't required to buy their products on a monthly basis. I don't buy the PepsiCo reference because they aren't afraid to put their product on store shelves. Melaleuca claims to save people money by bypassing the middleman but what they don't tell you is how much they charge you for shipping and handling. Very few of their products are cheaper than Walmart and they sell a lot of unneeded vitamins. Some people do make money off of MLMs but not enough. Most members struggle make a profit. It is sad to see so many people fall for these awful businesses.

Now I'm curious, Icerat, what kind of products does Amway sell? You don't have to be specific but I've noticed that MLMers don't like to go into much detail about how it works. Why so secretive?
 
The fact that most MLM recruitment experience stories include, "wouldn't tell me what the opportunity was unless I went to a meeting" is enough for me. Meeting means the need for peer pressure, which means it's not really a good opportunity.
 
Epok, I don't know about Melaleuca, but Amway's membership in the US is cheaper than Sam's Club, there is no requirement to buy stuff on a monthly basis, and refunds and cancellations are easily handled, no questions asked.

Re your last question, I'm not sure why you think "MLMers" are "secretive"? We pretty much spend out entire active time *trying* to explain what we do to people and get them along to information sessions. The last thing we are is "secretive". Want to try a product? No problem, I'll lend you one. Want to see what happens at a meeting? No problem, come along. etc etc etc. "secretive" is the last thing we are.

Amway today is primarily a healthy and beauty company, manufacturing over four hundred different products. It's #1 brand is Nutrilite, which is the world's best selling brand of nutritional/food supplements. It's quite unique in that rather than a selection of synthetic vitamins and minerals, which overwhelming research indicates has little benefit, Nutrilite researches and grows plants with high nutritional content, then through various patented processes concentrates this in to tablet form. Where the science supports it, they supplements will then be further enhanced with synthetic forms. Nutrilite also make various sports drinks and bars.

The second largest brand is Artistry, which is one of the Top 5 best selling prestige skin care, anti-aging and cosmetics brands in the world. With Artistry we're competing in the marketplace with the like of Estee Lauder and Clinique, not the lower end brands. Amway's actually launching a new lower end brand early next year though, BeautyCycle.

Other top brands include eco-friendly cleaning products. Amway began with this back in 1959, L.O.C. (Liquid Organic Cleaner) was the first product to bring the term "biodegradeable" to the consumer market. LOC and other cleaning brands such as SA8 and Dish Drops are still some of the most effective on the market, and are generally significantly cheaper per use than similar competitors.

Other Amway manufactured brands include eSpring and Atmosphere (home water and air filtration systems), Glister (oral care), Tolsom (men's skin care), Satinique (salon quality hair care), and various other lines.

All products are backed by a 100% satisfaction guarantee. You don't like it, give it back for a full refund.

This is where some "problems" arise. In addition to all the Amway manufactured brands, it's also possible to purchase products from other manufacturers through Amway. They're primarily there for the convenience of reps rather than for profitability, however, as you can an imagine with a 100% satisfaction guarantee, a company could not last 50 years and do $8.2billion in sales if it was marketing crap. So you can get toilet paper if you want, but it's top of the range toilet paper, not the cheap waterproof sandpaper toilet paper. You can get pet food, but it's the top of the range, top quality, type of pet food, not the middle of the range or lower quality stuff. What some people tend to do (and much of this is the fault of the poor approach of Amway reps) is look at the toilet paper and compare it to "normal" toilet paper in the local store, rather than to the "top" toilet paper. Go to your local supermarket and you'll find there's a whole range of different priced toilet papers - few people buy the top shelf stuff, but there's a market for those who want. Amway offers that category of stuff (let's face it, nobody wants to deal with returned toilet paper under a satisfaction guarantee!), people look in the catalogue, compare to what they normally buy and say "that's expensive!"

I'm not sure what you mean about being "afraid to put their product on store shelves"? It's got nothing to do with "fear", it's got to do with your target market and approach. If you want to sell something off a shelf, you need to spend a fortune on brand awareness and mass marketing. Without that you could put the product on the shelf, but nobody would buy it. Heck, everyone knows about Pepsi and Coke, but they still spend hundreds of millions a dollar in advertising to get you to buy it. How do you think a brand you've never heard of, that has characteristics that might make it more expensive upfront (like concentrated washing powder or organic plant concentrates), how do you think that would go sitting on a shelf? It wouldn't sell. If you'd never heard of Coca-Cola, and it was sitting on the shelf next to a can of cheaper generic store brand cola - would you buy the Coke? Probably not.

So our job as marketers is to tell the story of the products we offer, and instead of spending $$$$$ trying to do it via mass marketing, that money is instead directed to those who get results in getting people to use these brands.

As clearly is shown by the success of Nutrilite and Artistry, the approach works.
 
The fact that most MLM recruitment experience stories include, "wouldn't tell me what the opportunity was unless I went to a meeting" is enough for me. Meeting means the need for peer pressure, which means it's not really a good opportunity.

How about -

meeting means it's a lot more time efficient to show a bunch of people once, then each person one on one.

or how about -

meeting means it's possible for me, a new IBO, to get an experienced, successful IBO to explain the business

or how about -

meeeting means it's possible to meet a variety of people who do this business and evaluate what type of people do it

etc, etc, etc

Of course, I'm sure there's other people like yourself who have so little faith in themselves that they couldn't possibly survive seeing something in the company of others, they'd obviously be far too weak to resist all that peer pressure!:rolleyes:

I have some books and CDs that might be able to help you with your lack of confidence, Almo. Really, you should work on it, it's probably holding you back no end.
 
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Re your last question, I'm not sure why you think "MLMers" are "secretive"? We pretty much spend out entire active time *trying* to explain what we do to people and get them along to information sessions. The last thing we are is "secretive". Want to try a product? No problem, I'll lend you one. Want to see what happens at a meeting? No problem, come along. etc etc etc. "secretive" is the last thing we are.

This is simply a lie. You said yourself that you don't tell people it's amway when first meeting them. The "secretive" mode is the only mode you know. How much profit did you make from amway last year?

And it's not just you... amway corp *is* secretive about a lot of stuff as well (they don't release very detailed stats on the distributors for example).

This is where some "problems" arise. In addition to all the Amway manufactured brands, it's also possible to purchase products from other manufacturers through Amway. They're primarily there for the convenience of reps rather than for profitability, however, as you can an imagine with a 100% satisfaction guarantee, a company could not last 50 years and do $8.2billion in sales if it was marketing crap. So you can get toilet paper if you want, but it's top of the range toilet paper, not the cheap waterproof sandpaper toilet paper. You can get pet food, but it's the top of the range, top quality, type of pet food, not the middle of the range or lower quality stuff. What some people tend to do (and much of this is the fault of the poor approach of Amway reps) is look at the toilet paper and compare it to "normal" toilet paper in the local store, rather than to the "top" toilet paper. Go to your local supermarket and you'll find there's a whole range of different priced toilet papers - few people buy the top shelf stuff, but there's a market for those who want. Amway offers that category of stuff (let's face it, nobody wants to deal with returned toilet paper under a satisfaction guarantee!), people look in the catalogue, compare to what they normally buy and say "that's expensive!"

/me Rolls eyes. How much is this amazing toilet paper?
 
Tricking people into coming along to sessions or refusing to answer reasonable questions about the nature of the 'opportunity' is 'being weird'.

Of course, I'm sure there's other people like yourself who have so little faith in themselves that they couldn't possibly survive seeing something in the company of others, they'd obviously be far too weak to resist all that peer pressure!:rolleyes:

I have some books and CDs that might be able to help you with your lack of confidence, Almo. Really, you should work on it, it's probably holding you back no end.

As is attacking people who don't like being lied to in an attempt to drag them along to a high pressure sales event.

A normal organisation wouldn't behave this way.

Re your last question, I'm not sure why you think "MLMers" are "secretive"? We pretty much spend out entire active time *trying* to explain what we do to people and get them along to information sessions. The last thing we are is "secretive". Want to try a product? No problem, I'll lend you one. Want to see what happens at a meeting? No problem, come along. etc etc etc. "secretive" is the last thing we are.So our job as marketers is to tell the story of the products we offer, and instead of spending $$$$$ trying to do it via mass marketing, that money is instead directed to those who get results in getting people to use these brands.

Nice attempt to change the subject. Being dishonest to people in order to get them to attend high pressure sales events is being secretive.

Not being honest to people at these events about the actual incomes that are generated by actual Amway reps is being secretive.

No ifs, no buts.

As clearly is shown by the success of Nutrilite and Artistry, the approach works.

But we've seen the figures for sales and incomes of Amway people in places like the UK. The sales figures are very low, much much lower than for brands sold in normal retail outlets. The income figures are also very low, across the board. Much lower than for supermarket employees.

Just what market share does Amway toilet paper have?

What market share does Amway have for its very expensive pots and pans?

What proportion of the market for lipstick does Amway have?

What proportion of the market for washing up liquid does Amway have?
 
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As is attacking people who don't like being lied to in an attempt to drag them along to a high pressure sales event.

How many have you actually been to? The wons I attend are the antithesis of "high pressure".

Nice attempt to change the subject. Being dishonest to people in order to get them to attend high pressure sales events is being secretive.

Who is dishonest?

Not being honest to people at these events about the actual incomes that are generated by actual Amway reps is being secretive.

Independently audited statistics are "not being honest"?

But we've seen the figures for sales and incomes of Amway people in places like the UK. The sales figures are very low, much much lower than for brands sold in normal retail outlets.

UK figures are low. It's a huge opportunity! Nutrilite sales are 3 times that of their competitors (independent expert assessment). Artistry is top 4 in it's category and #1 in many countries.

That's three out of three you've simply stating falsehoods about.

The income figures are also very low, across the board. Much lower than for supermarket employees.

Again, false. Even the base level of Platinum earns significantly more than a supermarket employee for less work.

But of course you, dishonestly, want to compare the income of people NOT putting any hours into Amway with people working 40hr jobs!

You accuse us of being deceitful?

Just what market share does Amway toilet paper have?

Amway doesn't make toilet paper.

What market share does Amway have for its very expensive pots and pans?

No idea, it's not a brand we focus on.

What proportion of the market for lipstick does Amway have?

I told you, Artistry is top 4 in the world in prestige cosmetics, #1 in several countries.

What proportion of the market for washing up liquid does Amway have?

No idea. It's #1 in some countries, but again it's a minor Amway brand.

No tell me this - why would you, lipstick aside, pick minor brands that neither IBOs nor Amway is focused on marketing? The three major brands are Artistry, Nutrilite, and eSpring.

Artristry one of the best selling in the world
Nutrilite the best selling in the world
eSpring the best selling in Europe (don't know about the rest of the world)

That's Amway's major brands, and you ask about toilet paper, which Amway doesn't even make, cookware, which Amway makes but isn't a brand focus, and lipstick.

Why is that exactly? Is it ignorance of what Amway is actually about, or is it an outright deceptive tactic? This entire post of yours is deceptive. You claim "high pressure sales meetings", when they're anything but. You claim dishonesty to get people to attend, when that is clearly frowned upon. You then cherry pick obscure products and utterly ignore independent assessments of brand success.

And you have the hide to accuse me of being deceitful?
 
How much is this amazing toilet paper?

No idea I don't buy it.

But I'll look it up ...

There's a variety of choices ....

Scott® Two-ply Bath Tissue 80x605 sheet rolls $62.55 (78.2cents/roll)
Kleenex® Cottonelle® Bath Tissue 20x505 sheet rolls $27.59
Meadowbrook® Ultra Premium Bathroom Tissue 48x200sheet rolls $35.40 (73.8cents/roll)
(says similar to Charmin)
MEADOWBROOK® Gold Bath Tissue 48x200sheet rolls $34.00 (71cents/roll)
(says similar to Quilted Northern UltraPlush)
Meadowbrook® Bathroom Tissue 48x1000sheet rolls $43.20 (equiv 18cents/200sheet roll)

In my experience those complaing about the price of toilet paper cite the Meadowbook products and compare to something like Scott in their local store, conveniently ignore the Scott and Kleenex on Amway.

Checking CostCo -
Scott® Two-ply Bath Tissue 20x500 sheet rolls $22.99($1.15/roll)
Amway 32% cheaper for 21% bigger roll
Kleenex® Cottonelle® Bath Tissue 20x505 sheet rolls $21.99
CostCo 25% cheaper

Couldn't find Charmin & quilted northern ultraplush on CostCo. Quilted Norther on Walgreens -

Quilted Northern Ultra Plush 12x200sheet rolls $9.99 (83cents/roll)
Amway 14.5% cheaper

Charmin in Drugstore
Charmin Bathroom Tissue 24x200sheet rolls $21.99 (91.6cents/roll)
Amway 19.4% cheaper

Well whaddya know. Yet again I go check out a claim and discover it's actually bogus. In 3 out of 4 cases the Amway sourced product was significantly cheaper, and that's before we consider the final Meadowbrook product which works out A LOT cheaper.

Myth BUSTED

NOTE: I used Amway membership price as these products are targeted towards members. Amway yearly membership ($50) is the same as CostCo yearly membership ($50) and includes the possibility of further volume discounts. The Amway recommended retail price on these products is only about 8-9% higher than members price, meaning the cheaper Amway products above are still cheaper even at recommended retail price and no membership fee.
 
UK figures are low. It's a huge opportunity! Nutrilite sales are 3 times that of their competitors (independent expert assessment). Artistry is top 4 in it's category and #1 in many countries.

Claiming that you are number one or number four is meaningless. For all we know you have a completely bogus definition of the market for these goods to exclude sales from your competitors and to make yourself look good.

Sales position is particularly irrelevant as it tells us nothing about actual sales.

Again, false. Even the base level of Platinum earns significantly more than a supermarket employee for less work.

We've seen the statistics.

But of course you, dishonestly, want to compare the income of people NOT putting any hours into Amway with people working 40hr jobs!

You accuse us of being deceitful?

Lie. I want to compare the results of people who put the work into Amway that they are told to do (and buy the 'tools' that they are encouraged to buy) against the rewards that are implied when people sign up to Amway or against the results that would be had by getting a normal job in a normal company.

Amway doesn't make toilet paper.

You are being dishonest. You said Amway sells toilet paper. What is their market share?


No idea, it's not a brand we focus on.

A normal company knows these things.

I told you, Artistry is top 4 in the world in prestige cosmetics, #1 in several countries.

No you didn't. This is an example of the deceitful use of of statistics. Amway could have a market share of 0.01% and still be in the top 4 for 'prestige' cosmetics if there are only four companies that you consider to be 'prestigious'.


No idea. It's #1 in some countries, but again it's a minor Amway brand.

Which countries? Is this another example of defining the market segment in a way to make Amway look good?

No tell me this - why would you, lipstick aside, pick minor brands that neither IBOs nor Amway is focused on marketing? The three major brands are Artistry, Nutrilite, and eSpring.

I had no reason for picking those segments. I just know they are products sold by Amway.

Artristry one of the best selling in the world
Nutrilite the best selling in the world
eSpring the best selling in Europe (don't know about the rest of the world)

That's Amway's major brands, and you ask about toilet paper, which Amway doesn't even make, cookware, which Amway makes but isn't a brand focus, and lipstick.

Why is that exactly? Is it ignorance of what Amway is actually about, or is it an outright deceptive tactic? This entire post of yours is deceptive. You claim "high pressure sales meetings", when they're anything but. You claim dishonesty to get people to attend, when that is clearly frowned upon. You then cherry pick obscure products and utterly ignore independent assessments of brand success.

And you have the hide to accuse me of being deceitful?

Cry me a river.

If you want to claim that Amway products are popular then you have to pony up the info.

List the products, list the market shares and define the market segments (so we can see that you aren't arbitrarily excluding competitors to boost your claims).
 
Claiming that you are number one or number four is meaningless. For all we know you have a completely bogus definition of the market for these goods to exclude sales from your competitors and to make yourself look good.

Which part of "independently assessed" are you struggling to understand?

Lie. I want to compare the results of people who put the work into Amway that they are told to do (and buy the 'tools' that they are encouraged to buy) against the rewards that are implied when people sign up to Amway or against the results that would be had by getting a normal job in a normal company.

That's exactly what I want you to do as well. So why don't you do that instead of the bogus comparisons you're doing now?

You are being dishonest. You said Amway sells toilet paper. What is their market share?

Amway sells toilet paper, it does not make toilet paper. What's Toyota's share of coca-cola sales? The Toyota showroom down the road from me sells coca-cola. What's their marketshare? Who the hell cares? It's an idiotic question.

A normal company knows these things.

You want the phone number of my local Toyota dealer, so you can ask them if they know their marketshare of coca-cola?

No you didn't. This is an example of the deceitful use of of statistics. Amway could have a market share of 0.01% and still be in the top 4 for 'prestige' cosmetics if there are only four companies that you consider to be 'prestigious'.

Please, go find a dictionary and look up what "independent" means before you embarass yourself further.

Which countries? Is this another example of defining the market segment in a way to make Amway look good?

Oh yeah, now The Great Global Amway ConspiracyTM has stretched into major independent multinational market research firms.

I had no reason for picking those segments. I just know they are products sold by Amway.

Why didn't you pick the segments that Amway actually focuses on and cares about? Why not choose the segments that make up the vast bulk of Amway's sales, and 100% of their marketing budget?

If you want to claim that Amway products are popular then you have to pony up the info.

I've done that again and again on this and other threads. Links are available here Amway Award's and Recognitions

List the products, list the market shares and define the market segments (so we can see that you aren't arbitrarily excluding competitors to boost your claims).

Looked up "independent" yet? No fighting The Great Global Amway ConspiracyTM is there? :rolleyes:
 
I've noticed that a lot of Pro-MLMers come across as salesman. I mean, Icerat, you are trying to sell us onto Amway right here on this thread. Some of your post sound like a commercial. It sounds like you are trying to say that the products Amway sells are better than what you can get in the stores. As if Wal-Mart only sells Sand Paper Quality Toilet Paper™. And a lot of those health products that Melaleuca sells are unneeded woo. I think its funny how most of their vitamins have the disclaimer "This product has not been evaluated by the FDA and should not be used to treat, cure or diagnose any illness" yet in the same advertisement they are claiming just that.

And as for not recruiting competition (which you claim by using the PepsiCo analogy) MLMers make extra income by recruiting additional members and those new members in turn have to compete for recruiting other members. That turns into a whole mess of competition.

There is also this viral marketing (or whatever you call it) where MLMers will post things on the web with scam in the title and proceed to tell people how its not a scam but when someone posts a complaint they had with the company then they come outta the woodwork saying "Oh you did something wrong" or "That was just one person with a bad attitude". The company is never at fault for promoting bad business practices. Just check out some videos on YouTube and you will start to see a method. A lot of videos have only 3 comments and they are all from people who "absolutely love these products, I stopped going to random retailer because they are safer for the environment and are 100% organic". There is a lot of effort made to hide bad publicity but saturating the internet with the Pro-MLM rhetoric.
 

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