In this link is a video called Brilliant compensation. It explains the framework of MLM/network marketing. It is NOT a Company sponsered video just an instructional one.
THIS IS NOT MY WEBSITE! Just some relevant info
Amway
by enigma1863 81 Replies latest watchtower bible
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WTWizard
I investigated the Herbalife scam soon after leaving the witlesses. This was supposed to make big bucks--they usually don't. Instead, you do a lot of work, make a modest amount, and still have to work your regular job. With Herbalife, I found numerous other problems. First, I got the catalogs--I wasted about the amount I could have picked up a tub of silver with at the time on those things. And, I checked for quantities--as if I was going to purchase the product myself. Products like soap and shampoo had no size indicated in the catalog. Not in the description, not in the picture, not nowhere. As I am aware, this is not only illegal but bad business.
But the worst part was the page when I had to collect sales tax. I am aware that you collect sales tax based on the destination. If I ship to a state with no sales tax, I collect no sales tax. The page asked for the sales tax rate in my state--worthless. Suppose I was in New Hampshire (no sales tax) shipping to a state with tax. Or, some states (New York, for instance) have tax on cosmetics but not supplements (Pennsylvania is also like that). These can also change--a state can enact sales tax on supplements at a later time, and the tax rates can change (usually up). I contacted them about it, and they simply said they were working on it. This is supposed to be ready to go--no way I am going to proceed until I am collecting the correct tax on products, and that varies by which state I send them to.
Needless to say, I believe virtually all MLM's are scams. Products are hyped up to get more people to buy, and there is too much pressure to sell the package instead of the products. No, Herbalife will not help you lose weight. No, I don't think Herbalife products are any better than what you find at a low-end health food store. (Cheaper, since you are not paying downlines.) I also dislike the MLM's that sell various other products--what if I just want the product but do not wish to become a distributor?
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cyberjesus
I do not understand your reasoning that MLM is not a pyramid scheme (legal) they are, the idea is that the money moves up the line to fewer plp.
Do some research on what a Pyramid Scheme is.... People attack me often for not using propper english language and few really care to investigate really what that means... aint that ironic? MLM, pyramid scheme (never legal) and money moving up the line are different things, not necessary connecting
Cyber how many MLM plans have you been in & are you still in any, if you are I feel really sorry for you
Several...just read.... and why would you feel sorry for me? I am making money, the income keeps increasing, I help people do the same... its fantastic....
I have not read all the thread, so you may have already answered
I might uh?
LOL
LOL
going by your postings I always thought of you as a wiser person than to be in MLM
Yeah, somehow me the skeptic... with a Systems Analysis career and an anti-religious phylosophy got sucked in unwisdom.... like many here say. Cause wise people dont get into MLM... now aint that interesting...
I state openly... There is no better and more fair business model than multi level marketing. It allows those honest interested people earn income in shorter time than in any other marketing strategy.. I can prove it....
Still all the people here do is to spit their bitterness and ignorance.... funny thing is that I am not selling anyone anything... I like to come to this thread better than god-no god ones.... I want a serious business minded person to present facts.. other wise is mob gossiping..
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TeenageInsider
omg, ive seen sooooo many JW's get sucked into these kinds of things! We all know that if you are a Jw, you have to be the most gullible human on the planet.
Poor 'sisters' selling Avon, Amway, Pampered Chef, Dishes, Cutlery, Makeup, Cosmetics, Monavie, Some wierd vitamin company.
They are pitched that its not a "job-job" you can "Work from home"and the sisters are thinking : "Work from home??! Wow! I can Pioneer, and I have lost of friends who I can have over to talk about my products!"Then they get other poor 'sisters' sucked in and its all a big mess.
Real sad
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cyberjesus
I investigated the Herbalife scam soon after leaving the witlesses.
>>I am calling BS on this statement.... Herbalife aint no scam... The products work, thousands of people use them everyday.... and they loose weight. I can guarantee you that your research didnt extend more than 8 hours.
This was supposed to make big bucks--they usually don't.
>>Oh more lack of knowledge.... I personally wouldnt be in herbalife because the market saturation not because it doesnt work but because it takes longer...
Instead, you do a lot of work, make a modest amount, and still have to work your regular job.
>>Thats the concept of any startup business...
With Herbalife, I found numerous other problems. First, I got the catalogs--I wasted about the amount I could have picked up a tub of silver with at the time on those things. And, I checked for quantities--as if I was going to purchase the product myself. Products like soap and shampoo had no size indicated in the catalog. Not in the description, not in the picture, not nowhere.
>> what you described could be to any kind of business.... and if some thing doesnt work.... you changed it... lets run and tell those guys cuz after 40 years in the industry all over the world they need to do something about it.
As I am aware, this is not only illegal but bad business.
>>Then you are not aware.... This industry is the most regulated of all. To open up a business with this model takes more expeses. Even a regular bank account is regulated and has more fees.... Lets tell the FEDS that herbalife is illegal... they have missed it for 40 years...
But the worst part was the page when I had to collect sales tax. I am aware that you collect sales tax based on the destination. If I ship to a state with no sales tax, I collect no sales tax. The page asked for the sales tax rate in my state--worthless. Suppose I was in New Hampshire (no sales tax) shipping to a state with tax. Or, some states (New York, for instance) have tax on cosmetics but not supplements (Pennsylvania is also like that). These can also change--a state can enact sales tax on supplements at a later time, and the tax rates can change (usually up). I contacted them about it, and they simply said they were working on it. This is supposed to be ready to go--no way I am going to proceed until I am collecting the correct tax on products, and that varies by which state I send them to.
>>this is what happens when you have customers in different states..... a bad problem to have uh?
Needless to say, I believe virtually all MLM's are scams.
>>What other things do you believe? ultimately what we believe doesnt matter... what matter is the real facts... Sure some people have abused the model.. sure but people would abuse any model... There are tons of different kinds of MLM models and thousands of different companies.. are they all a scam? when you get comissions on the work of your sales force is that also a scam? because that is also multi level...
People dont know that MOST companies that involve retail pay commissions on a ML format... we are doomed.
Products are hyped up to get more people to buy,
>> Do you drink Coke? do you buy burgers at McDonalds? Do you have a Sony product? That my friend is the purpose of any business.
and there is too much pressure to sell the package instead of the products.
>>that might be the case with you... but does that make the case with everybody?
No, Herbalife will not help you lose weight.
>> Lets tell them... they made a mistake... after 40 years finally someone discovered it.... See the good thing is that now with the internet... Anything is out there in a matter of seconds.. you can if you really want to know something, find it.
No, I don't think Herbalife products are any better than what you find at a low-end health food store.
>> That might be true.... I mean I am thinking that you know all the products in herbalife.. or not. But thats call competition....normal in any other business.
(Cheaper, since you are not paying downlines.)
>> cheaper compared to MLM products.... but someone is making big bucks on those too... and its definetely not the end user..
>> If a product has high demand.. better quality, low competition the manufacturer sets the price... simple... if the margin is big then you can pay more comissions.... I like that.... I love that... the better the margin and the larger your distribution network... the more your profit... Business 101.. try starting a business and that what you ll want.
I also dislike the MLM's that sell various other products--what if I just want the product but do not wish to become a distributor?
>>you buy it from a business that sells it.... of from someone inside the biz.. they will be more than happy to sell it to you.... thats the whole purpose.
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Chaserious
Since these are the best businesses on earth, CyberJesus, why can't the products compete with other products on the free market and be sold in stores and on the internet? That way, both the manufacturer and the customer would be better served. Neither would have to subsidize 6 different salespeople up the sales chain and the product could be less expensive for the consumer, yet still yield more profit for the manufacturer. And don't cite a car salesman example again. Most consumers want someone to help them pick out something that is going to cost 6 months salary or more. Vitamins and cleaning products are not comparable.
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cyberjesus
Any business you need to put at least 2 years to get your investment back.... thats if you ever make it... period
Most people who believe the Myth or the gossip either have never done it nor have not put a solid year on it...
and they comment like they know every thing..
aint that funny?
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cyberjesus
why can't the products compete with other products on the free market and be sold in stores and on the internet?
>>Excellent question. Any company can use this model... any. the distribution channel has to be private... if the product can be obtained everywhere then it wont work. Many companies try it but fail because they didnt ensure low competition... remember any company can do this model. The products have to be Excellent quality, otherwise it wont work either... So usually the products are the best of the best... if the company has been in busines more than 5 years then you know for a fact the products have high demand
That way, both the manufacturer and the customer would be better served.
>> Not necessarily. the customer will pay for a product if he really wants it.... Mercedez Benz are expensive? sure but there are tons of people buying them... there is a market for anything. you pay the brand.
Neither would have to subsidize 6 different salespeople up the sales chain
>> The shirt you are wearing today... i bet that more than 20 people made from it. in MLM you control that channel
and the product could be less expensive for the consumer, yet still yield more profit for the manufacturer.
>>almost but no cigar.... the key here is high marging, high demand... if you have that you can use MLM.. the best marketing system is the referral one.
And don't cite a car salesman example again. Most consumers want someone to help them pick out something that is going to cost 6 months salary or more. Vitamins and cleaning products are not comparable.
>>you can so many products in this model... you name it. Groceries, Water, Electricity, Gas, Cell phone, Vitamins Supplements, Beauty, etc etc etc
remember as long as some one wants it.. and you have high margin.... you are in big business....
Its just beautiful
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Chaserious
Selling the product that way does not create more profitability for the manufacturers; it creates more profitability for people in the sales channel. Dateline (linked below) got an Amway higher up to admit that some of their elite distributors make over 75% of their income, not from selling these supposedly great products, but from the motivation business: " Seminars, rallies, functions, motivational tools, tapes, books, speaking engagements, appearances." They are basically making money selling the motivation product to their own salespeople. You demonize working for someone else, but with the rate of success that seems common from all accounts, if you have the killer work ethic you are describing and don't mind making no money for a few years, you might as well go work in the mailroom of some large corporation. Maybe you'll eventually get promoted to VP of something and make 7 figures. And at least in the early years you'll have health coverage and won't have to pay lot of money to your own company for them to train you.
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Dagney
darth frosty, you have a PM