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Destructive Effects on the Lives of MLM Paticipants

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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.
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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.
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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.
mlm,compensation

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.
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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.
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Destructive Effects on the Lives of MLM Paticipants

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The effects on the lives of participants is well described by Robert Fitzpatrick in excerpts from the web site of Pyramid Scheme Alert:

In recent decades, pyramid schemes have become an insidious, pervasive and corrupting influence in the marketplace and community, causing financial and social harm on a global scale.

Since 1980 a new form of sales and marketing, called multi-level marketing or network marketing, has spread worldwide and spawned an explosion of pyramid sales schemes involving tens of millions of consumers. The line between legal forms of network marketing and fraudulent pyramid programs is a point of controversy, confusion and inquiry in many countries.

MLM Pyramid Schemes:

  • The largest and most widespread of the pyramid schemes are those that disguise themselves as "Multi-level Marketing" (MLM) businesses.
  • These schemes cause the greatest harm, affect the most people, and steal the largest amount of money.
  • They can involve millions of people, swindle billions of dollars.
  • Because they mask themselves as "sales and distribution businesses" they unfairly compete with legitimate business
  • Because MLM pyramid schemes require high levels of recruiting, they entice people to defraud their own families and friends. Consequently, the social harm can be as greater or even greater than the financial damage.
  • Because MLM pyramid schemes masquerade as "independent business" they play upon and distort important values such as independence, initiative, entrepreneurship, and personal freedom.
  • Because MLM pyramid schemes make promises of extraordinary wealth to the participants, people can be induced to spend all their earnings, lose or quit their existing jobs, neglect their families and other relationships and take on great debt in the pursuit of the elusive "dream" they have been deceptively sold.
  • MLM pyramids operate as private "networks" outside the mainstream of business and normal social life. They are strictly hierarchical with uplines, downlines and charismatic "leaders."
  • They require loyalty and large commitments of time, and they persuade participants to avoid anyone ("negative") who questions or critiques MLM. Consequently, MLM pyramid schemes can gain the power of a cult over people’s lives.

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Destructive Effects on the Lives of MLM Paticipants
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