MLM Articles
Potential Questions and Objections
Don’t automatically assume your prospect is going to have a negative perception of MLM and that you have to defend network marketing. It is best to ask questions in response to their questions so you learn, figure out, where they are coming from.
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Multi-level Marketing
In very simple terms, Multi-level Marketing (MLM) is spending more time on making your customers SELL for you rather than BUY from you! It is the art of turning your customers into your trusted brand ambassadors, i.e. your sellers.
multi-level,marketing,MLM
How To Write A Well-Themed MLM Article
How To Write A Well-Themed MLM Article
Needed: A More Proactive Approach to Enforcement of Laws Against Pyramid Schemes as Applied to MLM’s
One of the insidious features of many MLM’s is that promoters often aggressively harvest the rewards from building their pyramids and disappear before enforcement agencies can catch up with them.
law,pyramid,schemes,mlm
Types of MLM Compensation Systems
A frequent argument of MLM promoters is that while they may agree that there are problems in the MLM industry, each will claim they have solved the problems with their new brand of MLM compensation system, which is supposedly more fair, honest, generous, etc., than all the others.
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Naked Pyramid Scheme vs. Product-Based Pyramid Scheme
To distinguish between typical pyramid schemes and those masking as MLM’s, I will introduce two terms that should help clear up the confusion between the two, along with some features which they have in common.
pyramid,scheme,mlm,product
Challenge to the Industry: "Prove Me Wrong"
As feedback began coming in, I began to see patterns displayed by MLM’s that were eerily similar to illegal pyramid schemes.
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I decided to investigate MLM for myself
As a long-time critic of MLM programs, I was curious to know why so many otherwise intelligent and capable persons were involved.
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Destructive Effects on the Lives of MLM Paticipants
The effects on the lives of participants is well described by Robert Fitzpatrick in excerpts from the web site of Pyramid Scheme Alert:
mlm,pyramid,schemes,network marketing,multi-level
The History of Pyramid Schemes and Multi-Level (or Network) Marketing (MLM)
The history of pyramid schemes in this country is fascinating, but I will include merely a brief sketch here.
pyramid,scheme,multi-level,network marketing,MLM,Ponzi,money
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Home › MLM articles › A Good Investment? Or a Pyramid Scheme?
A Good Investment? Or a Pyramid Scheme?
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Pyramid schemes deceive and cheat consumers. Con artists often disguise the scams as “network marketing” opportunities, making it difficult to tell whether the offer is legitimate or a sham.
How Can You Tell The Difference?
Network Marketing Companies: Legitimate network or multi-level marketing Tell The companies are designed to sell products not participation. They generate money Difference? through the sale of goods and services to non-participants. Pyramid Schemes: In a pyramid scheme the sales pitch emphasizes building up the organization and the number of participants—not selling products to consumers.
Pyramid Schemes
A pyramid requires the participation of a rapidly expanding number of people. As a Schemes: result, all pyramids ultimately collapse—and you lose your money.
Here’s how a typical scheme works: You pay to join the “marketing” company at the entry level. You are promised huge returns once you get to the top. You must recruit six friends in order to move up to the next level, and each of them has to recruit six more friends, and so on.
Using the above example, you have to recruit over a million people before you get to the top: 6 36 216 1,296 7,776 46,656 1,679,616 That’s more than the population of North Dakota!
Don’t Risk Your Money Before putting your money at risk, ask yourself: Money: - Could you make money just by selling the product to customers? If not, it is a scam.
- Are training materials and sales aids provided to you at cost? If not, it is a scam.
- Is the emphasis on recruiting others or product sales? If it is on recruiting, then it is a scam.
- Are you told you can make lots of money with only minimal effort? If so, it is probably a scam.
- Are you being pressured to make a hasty decision? If so, it is probably a scam.
- Do you have to pay a “participation” fee? If so, it is probably a scam.
Warning: Pyramid Schemes are Hazardous to Your Money!
Things To Remember:
1. Pyramid Schemes are illegal. There is a real risk that a pyramid operation will be Remember: closed down by law enforcement authorities and the participants subject to fines and possible arrest. 2. Pyramid Schemes are deceptive. Participants in a pyramid, whether they mean to or not, are deceiving those they recruit. 3. Pyramid Schemes are losers. Pyramiding is based on simple mathematics: many losers pay a few winners.
The con artist is counting on your money!
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Real Story
Drop Shippers and eBay
I paid for a report on eBay that promised to make me rich by drop shipping.
comments: 2
Envelope Stuffing
After realizing that I wasn’t cut out for MLM, I soon fell victim to the old envelope-stuffing scam.
comments: 2
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