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.
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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.
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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.
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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:
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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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Home � MLM articles � Three ethical dilemmas for participants caught up in MLM type pyramids

Three ethical dilemmas for participants caught up in MLM type pyramids

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Attorney Douglas Brooks of the Boston-based firm, Gilman and Pastor, LLP, has successfully sued multilevel marketing companies for pyramid fraud and deception.

He participated in the landmark case against Omnitrition International. That ruling by the US Ninth Circuit Court of Appeals serves as the foundation for most FTC actions now. Brooks sees at least three ethical dilemmas for participants caught up in MLM type pyramids.

• Participants must promote an opportunity that does not exist. For the most part, Brooks notes, the persons who succeed in pyramids are involved at or near the inception of the program…. The odds of later entrants succeeding grow ever more dismal the longer the program continues.

• The products or services offered by MLM-type schemes are typically overpriced, or of questionable value, or both. The price must include a markup to fund the huge MLM payouts to the top levels. He notes the marketing of such products as herbal remedies, diet supplements, cosmetics, tax advice, motivation seminars or online “malls” where it is nearly impossible to verify sales claims.

• MLM distributors must exploit their personal relationships through selling both the (overpriced) products and the (bogus) opportunity to the persons most likely to rely on their honesty and character.

• The participant is lured into an insidious lie and enticed to spread the lie to those who trust him most. In a 1998 60 Minutes exposé, correspondent Mike Wallace termed the MLM type pyramid a “devastating con.”

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