mlm companies like amway exists becoz somewhere along the line
it has done something right to sustain it's operations. But if you
were to do a research on amway, u will also find that it's
associated with many scandals and they had paid millions to
compensate. Not that there are no other businesses that are
involved in scandals, just that mlms are very popular with scandals
and scams.
http://www.mlmwatch.org/ check out
this website, the author has done extensive researches into mlm and
it's problems. As far as I'm concerned, what the mlm ppl advocates
is far less convincing than the arguments this author has put
fore.
The general sentiments of the public is that mlm is filled with
flaws, why else do u think there are more ppl against it than for
it? I personally have seen how friends and friends of close friends
crumble under the facade mlm companies created.
If you go for any sales pitch, the mlm ppl advocates that this form
of business is superior and has created great wealth for many ppl.
but when you probe further and point out certain fundamental flaws
in this form of distribution, the mlm ppl start using vague
examples like how in every systems and companies there are ppl who
succeed and ppl who fail. I have no doubts that is true, and it is
pretty much true for MLM companies too, there are ppl who succeed,
but I dare say more ppl fail or are financially worse off than b4
they joined these mlm companies. It is not really like what these
mlm recruiters advocate!
Think about it, how does a company generate revenues? Through the
sales of its products. Mlm entices ppl to join them with the allure
of passive income which means after you have done your fair share
of hard work, you can relac, shake leg, collect money. I have
hardly seen any mlm companies that really focus on it's products,
creating value or passing off savings to it's consumers.
Recruitments are generally about how to earn passive incomes. So if
everyone is busy recruiting, who is doing all the selling? And
think about it, as a distributor, who can u sell these products to?
PPL in shopping centres? NO, u sell to ppl u know, ur friends and
relatives. Provided these products are good and perishable, ur
friends and relatives may continue to purchase these products from
you.
However when you look at the products spore mlm companies selling,
mattresses that cost thousands of dollars and once purchase no
one's gonna buy it again in the next couple of yrs? and it's like
not its relatively cheap and perishable like a can of coca-cola or
mars bars. Look at the supplements sold, are they generally
superior to the vitamins sold in retail outlets? Has it got a more
superior consumer goodwill aka branding than brands such as
Blackmore?
When you have run out of avenues to sell these products to esp if
they are not perishable or geniunely superior, who are u going to
turn to? Recruitments of coz! get ur friends to join and become ur
downline so that they sell, u can just collect money. What happens
if ur friends suck and aren'r able to sell? u run of sales and
therefore commissions, and u are probably spending more time
recruiting ppl, hoping they make sales for you. So at the end of
the day, you make money by recruiting ppl who can sell or stupid
enuff to buy the products themselves so u can earn the commissions.
so the answer is yes u can earn money, but u also have to work
extremely hard recruiting able ppl to sell, and this cost huge
amount of time. Eventually ppl will realise they are not making
money and start leaving and you have to work even harder to
continue recruiting.
So mlm is pretty much like any other jobs or part time jobs, it's
not really any superior than other kind of work out there. Any
companies that have sustained sales revenues are able to pay stable
salaries to it's employees and encourage them to create sales
through commissions. mlms are not such companies, therefore the
income u are all entirely thru commissions. I understand that the
reason mlm companies say you can only earn through commissions
because that will spur you to work hard. Then it's no more passive
income! You gotta work hard recruiting or selling in order for the
income to come in. It's not like you put in a certain amt of money
for an investment and that investment is able to give you a good
rate of return say 15% or more every year.
It is the lies these mlm ppl tell or the facade they try create to
get ppl to join them that pisses ppl off. No one likes to be led
on. And think about it, if these form of distributions is so
effective, why aint nike, adidas, macs, burger king, or blackmore,
gnc doing it? Why would they spend billions to advertise and get
celebrities to endorsE?
I also understand that many mlm ppl are fans of robert kiyosaki's
books. I'm also a fan of his books, probably rich dad poor dad only
la, coz the other books are just repetitive versions of RDPD. And I
think his books are fun to read FICTION books, not financial guide
books. If you want to read good business, finance books, The
Intelligent Investor, Security Analysis are good examples.
"The truth is MLM's espoused core business -- personal retailing --
is contrary to trends in communication technology, cost-effective
distribution, and consumer buying preferences. The retailing
activity is, in reality, only a pretext for the actual core
business, which is enrolling investors in pyramid organizations
that promise exponential income growth."
http://www.mlmwatch.org/01General/10lies.html
My friend who was trying to get me to join mlm even tried to
convince me 50% of fortune 500 companies are MLMs, I'm very
inclined to say he is lying through his balls coz he has no brains
to think.
