The cult of evil: MLM

last SG · 2009-06-02T19:35:54+00:00

Hi guys.My friend was called up for an interview as a management trainee but he doesn’t remember applying for this position.He received this email after spea...

skythewood SG

Yes You are right. But the point is this, in biz nothing is guaranteed. Bubble tea are still in biz although many have perished. Same with donut.

to Canovasa ling 89:

Mlm is comparably to franchise. But of course the system is different. Franchise makes the system simple. They provide you the brand and a proven system so the marketing is partially done without the hassle of starting up a new biz all by yourself. In return you have to buy the rights and manage the biz.

Again there is no guaranteed that it will become sucessful.

My question is this: what is it that makes you wana join this company?

Nothing is guaranteed?

I assure you there are many things in business that is so.

especially how some strategies are guaranteed to fail, Be it long run or short run.

For example, name me 3 MLM companies that has a long history.

Xcelon82 SG

Again, i agree with you on this to a certain extent. You do not have complete ownership to the company but that doesn't exclude the fact that you still have to think differently or you can be sure of failure with an employee's mindset.

Xcelon82 SG

The history of mlm is only about 50 yrs. Without saying it, im sure you guys already have one company in mind.

I don't research much on the exact history of mlm company. But im sure if i google it, i can find quite a few. Will let you know again.

Here's an article on the truth of mlm.

http://www.internetnextstep.com/mlmsecret.htm

eagle SG

Erm.... Just this statement alone:

You do not have complete ownership to the company

You have zero ownership unless you are a shareholder

Deino SG

I Joined EY few weeks ago~

Is it free To Join it? I paid $40 for it.They say It's for Starter Kit.2nd Time I went down.They asked Me To pay $1600+ for The Bed.I said I had only $500 for it. I Don't know how It works. But Seriously~I Don't like Sales. But no pain no gain.That's what I believed. They might Trick you down/Brainwash you.It occurs To 80/even 90% of The people out there.I don't know if This is A Trick.I've not yet earned any $ yet. Then Im To pay them $.Im not really Happy with it.I Told To 1 of my friend~He said It Totally is A Scam.I read some of The posts~It said The Bed has no effect. I can't say anything for now. Maybe,I can in 1 month Time.So~How Does It work Im not sure. Having RICH in 3 years Time? My Friend said This''If This is True~There're many rich people now. All were AIM for This company.'' well ~I Agree with him.I Don't know The Truth of EY. I Don't Believed I can earn many in there.I think It's Just like any Sales Job. Just That The name is like ''FAMOUS''. like what my friend said~If EY really is good. whys there still poor people now? For Me~I think''If EY really is good.whys There still so much Complaints''? Yet I Doubted.I must say The Good Points are

1st.The people are Friendly. It feels like Family in there.

2ndly.It's A Flexible Job. not like others~You needa wear uniform/sign contract/ work for it like hell. You can go there wherever you want. But If That's so(Your Rank will always Remain low)

3rdly.People in there always Happy To share with you Their Experiences.

4Th.They're good convincers.. (Tricked you down..Tell you good points of EY Etc.How They earn so much in There.....)

For The Bad Points

1st.never heard must pay $40 for The 1st day. It's like unreasonable.where's The starter kit? I didn't even saw/get it.

2ndly.They say how well The product is Etc. After They asked You To Take few $100-$1000+ out To buy their products To know The Benefits of it ~so you can convince customers next time you selling it To them.

3rdly.They Just ask You To Join(Reason:To Make Their Ranks higher.To help them buy their products,asking your friends To go down there..Etc saying They'll help your friend To Promote into higher ranks so They Benefits From it but not You)

4Th.They Don't really reveal out Their Salary.Just used By Talkings~how much They earn Etc Etc.It's like Exaggerating/Empty Talks.

I really Agree with redstone. I feel somehow Regret To Join Them for nothing.

EY...been there...

Lame lo...i got money to pay the 40 bucks also i say i dun have...

Those people just wouldn't take no for an answer...so i just signed their damned papers and the guy said they'd pay for me...

My friend kept on asking me to come for their trainings but i gave excuses...

I hate their tactics...a whole load of crap...first thing every one of them that i met asked was "wots your dream car?" and i was like thinking like "-_- wtf...so materialistic sia these people..knn you think i know nothing about science and you trying to mock at my dreams?"

friends who pull in other friends in without first thinking of their capabilities are pure dumb...

Xcelon82 SG

Erm.... Just this statement alone:

You have zero ownership unless you are a shareholder

Thanks for the correction.

My company that im currently looking into do profit sharing and possibly shares ownership when they are listed.

That is what they say. Unless they do it, if not your current statement would be correct.

That of course in only applicable if you are in my scenario.

skythewood SG

Thanks for the correction.

My company that im currently looking into do profit sharing and possibly shares ownership when they are listed.

That is what they say. Unless they do it, if not your current statement would be correct.

That of course in only applicable if you are in my scenario.

hahahahaha

skythewood SG

The history of mlm is only about 50 yrs. Without saying it, im sure you guys already have one company in mind.

I don't research much on the exact history of mlm company. But im sure if i google it, i can find quite a few. Will let you know again.

Here's an article on the truth of mlm.

http://www.internetnextstep.com/mlmsecret.htm

skythewood SG

http://www.mlm-thetruth.com/ShockingMLMstats.htm

eagle SG

Thanks for the correction.

My company that im currently looking into do profit sharing and possibly shares ownership when they are listed.

That is what they say. Unless they do it, if not your current statement would be correct.

That of course in only applicable if you are in my scenario.

Erm

Whether they do it a not, my statement that "you have zero ownership unless you are a shareholder" is still correct.

Deino SG

Thanks for the correction.

My company that im currently looking into do profit sharing and possibly shares ownership when they are listed.

That is what they say. Unless they do it, if not your current statement would be correct.

That of course in only applicable if you are in my scenario.

profit sharing?

in mlm, people aren't even paid a basic salary...instead they are paid "commission"..a percentage that depends on their rank...besides that, most are rather "encouraged" to "self invest" by buying from the company...this way, they are only making a huge loss at start...the only way for them to be "successful" in mlm i guess is if they could actually start to cover all the losses including their daily expenses right up till the day they start making any profit if at all..

so no matter how you look at it, you are no more than an employee...and ranks are nothing more than a title which you can easily gain if you can sell some and recruit some to sell some...and the only way you can earn is that you make sure that those you recruit stays below you...

owning an own company mean to have complete control over wot you are selling, beside having your own name and branding for the company...

Xcelon82 SG

Erm

Whether they do it a not, my statement that "you have zero ownership unless you are a shareholder" is still correct.

I did agree with you right?

Xcelon82 SG

profit sharing?

owning an own company mean to have complete control over wot you are selling, beside having your own name and branding for the company...

Since they do not have basic salary why would they be consider employee?

First. Being paid a commision only on sales categorise them as self employed.

Second. And since they have the power to leverage on others, this allows them to operate it like a biz.

Third. If you don't use your own product in your own biz, i don't see any reason that you will become sucessful.

When i say profit sharing, i mean the company will give you a portion of their profit they make on top of your basic comm.

eagle SG

I did agree with you right?

I'm targetting this sentence of yours

Unless they do it, if not your current statement would be correct.

My reply was "Whether they do it a not, my statement that "you have zero ownership unless you are a shareholder" is still correct."

eagle SG

Since they do not have basic salary why would they be consider employee?

First. Being paid a commision only on sales categorise them as self employed.

Second. And since they have the power to leverage on others, this allows them to operate it like a biz.

Third. If you don't use your own product in your own biz, i don't see any reason that you will become sucessful.

When i say profit sharing, i mean the company will give you a portion of their profit they make on top of your basic comm.

1) Interesting... But still sound wrong to me, though I can't pinpoint where at the moment

2) Many other jobs also allows u to leverage on others. E.g. engineers can leverage on engineering assistants to help them in their work.

Deino SG

Since they do not have basic salary why would they be consider employee?

First. Being paid a commision only on sales categorise them as self employed.

Second. And since they have the power to leverage on others, this allows them to operate it like a biz.

Third. If you don't use your own product in your own biz, i don't see any reason that you will become sucessful.

When i say profit sharing, i mean the company will give you a portion of their profit they make on top of your basic comm.

Thats where i disagree with you...Wotever it is as long as you are listed as a distributor, you are no more but an employee...especially in the pyramid scheme...you are still working under the company therefore, you're no more than an employee

you are tied down by ranks...a person who is self employed is not an ODM, DM, SDM or wotever bloody rank that makes them...besides, commission is made at a very low percentage...in a real business, profits are made, not commission...

The company will give you a portion of their profit? i doubt they'd do anything like that if its not for bonuses or to make the company look good...

eagle SG

Yup Deino pointed out right... commission is different from profits

Being paid a commission merely means you will earn as much as the number of successful sales you made. Commissions are merely tools to employ people to work hard...

In businesses, you talk about costs, overheads, selling price, profits, not commissions.

But Deino, being listed as a distributor doesn't necessary mean you must be an employee. Nutritionpark is a distributor for certain products, but they are still a business.

Deino SG

Yup Deino pointed out right... commission is different from profits

Being paid a commission merely means you will earn as much as the number of successful sales you made. Commissions are merely tools to employ people to work hard...

In businesses, you talk about costs, overheads, selling price, profits, not commissions.

But Deino, being listed as a distributor doesn't necessary mean you must be an employee. Nutritionpark is a distributor for certain products, but they are still a business.

ah yes yes...thats where i found myself to be wrong too..haha..

wot i was trying to say was being listed as a distributor in the mlm company...or in this case an mlm agent...

yea especially about the part where he/she talks about the company giving percentage of profits...

profits are kept either for the owner of the company, the company itself and its share holders...

marcteng SG

anyone know abt ponzi schemes?

I think the MLM took a leaf out of the ponzi schemes in the early 1920s-1930s. pyramid selling also copied from ponzi schemes.

Xcelon82 SG

Haiz.. Go check the definiton of employee in the dictionary or any government website.

Enough said.

I do understand where you are coming from but your explanation is unfounded.

Comm is different from profit but i have already explain that in my previous post. Been paid a profit is from the overall profit that the company made and is been distributed to the distrbutor themselves not from the sales they made.

My definition of leverage is making use of people's expertise or strength to expand one's biz. Not in the area of engineer or any employee's work for that matter.

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