Here is where I have my biggest problem with MLM. I know that it's not a get rich quick scheme. You know that. Everyone here knows that. But every MLM sells itself as a ticket to riches. Maybe not overtly, but the promise of extra income is what brings people in to "the opportunity." And there are far too many people who fall for the spiel and end up losing out.
Is there though? Look at the Amway statistics. 46% of IBOs earn a bonus. How many have expenses? That's harder to tell. Wouldn't it be nice if you could ask them, or get an independent consultant to find it?
As it happens, that happened for the Pokorny Class Action settlement. An independent consultant was hired to look at the books of all the companies dedicated to selling training materials, seminars etc etc to IBOs (BSM - Business Support Materials).
After looking at Amway's and the BSM companies data, the consultant estimated that only between 16% and 23% of all IBOs over a 10 year period spent more than $100
total.
These people were eligible for money from the cash settlement if they made a loss.
97% of them were successfully contacted.
How many requested the cash? "between 3.7% and 5.3%" of those eligible. In other words,
less than about 1% made a loss.
If MLMs told you up front that you had very little chance to make money and that it would take a ton of work, very few would ever sign up to be an IBO.
Umm, they do. (Not that "chance" has much to do with it). The income disclosure statements make it very clear that few people make significant money. Amway's typical plan talks about taking 5 years to reach "Diamond", putting in
at least 5000 hours - most of it
on top of your existing job.
That's a "ton of work" in anybody's book
The second big problem I have is that MLMs prey on the close family and friend relationships that people have. I have personally witnessed this and have heard a lot of stories from friends about families torn apart. The latest concerned Advocare, which has just started taking off in my area.
That has nothing to do with MLM per se. Avon, before it became an MLM, certainly encouraged people to sell to friends and family. I've owned several businesses (not MLM) and I can assure you I let me friends and family know what I was selling, and indeed I did provide products and services to many of them.
If you're doing "sales" properly, you're not "preying" on anyone. You're providing a product or service to people who want. ´"guilting" people in to buying your stuff is stupid no matter what industry you're in.
The last area of concern is the products themselves. There is nothing that you won't find an equivalent for in your local stores.
There's probably hundreds of thousands of products marketed through MLM, I doubt this assertion is correct.
But the worst part of them is that they are so overpriced. Double X vitamins cost $82.45 for a months supply. I can get a multivitamin with everything I need (and I use the word "need" loosely since most people don't "need" a multivitamin) for $20 at GNC and much less at my local grocery store. The claims made for the product are pure woo -organic, made with real food, blah blah blah -nothing but fluff to puff up the price.
The idea that fruit & vegetables are better for you than isolated vitamins (particularly synthetics) is woo?
Good grief
you might want to have a think about that.
Of course, you've also done the typical "critic" thing and gone and picked the most "exclusive" product you could find (I've been unable to find any competitor to Double X). You conveniently ignored Nutrilite Daily, which is still better than GNC (contains real plant extracts) and is only $15.55 for a 3 month supply.
Personally I find that kind of action - picking the most expensive product to compare rather than the most comparable one - to verge on dishonest. Why would you do that?
