For a start, I believe that is not true and simply an urban myth … but, it was what caught my eye when I received an interesting e-mail the other day … who it’s from is the most interesting part, but more on that later.
The e-mail opened with:
Both Trump and Kiyosaki recommend Network Marketing in their latest book “Why we want you to be rich.
Two rich, successful people ‘pushing’ network marketing?! Let’s read on …
Trump and Kiyosaki BOTH say that if they had to do it all over again, they would build their fortunes in THIS industry.
There were rumors travelling the blogosphere that Robert Kiyosaki’s first book “Rich Dad, Poor Dad” only hit the best-seller lists because legions of Amway members were buying it (I’m sure some did, but I’m also sure that the book hit – and stayed on – the best-seller lists simply because it was very popular with the masses).
But, the biggest reason why these guys seem to be pushing MLM is the same reason as Warren Buffett could consider owning one: there is more money in OWNING an MLM than there is in being a member of one.
Over 90% of the money in this industry is made by the COMPANY’S OWNERS and Trump, Buffet, and Kiyosaki know this! (Buffet alone reportedly bought 7 network marketing companies in the last year!)
Let’s look at why this might be so …
In the traditional world, a company manufacturing goods for sale to an end-consumer has to go through ‘many hands’ to make the process work.
This distribution chain (manufacturers -> manufacturer’s agents -> wholesalers -> distributors -> retailers -> consumers) multiplies the manufacturing cost of the product by 6 to 8 times!
If a manufacturer can instead have a highly-motivated, commission-only sales force taking their products directly to consumers in their local area (and, who also buy and use the products themselves at relatively small discounts), these manufacturers can keep a large piece of that distribution pie for themselves. Tempting huh?
But, there must be SOMETHING in this for all the people who pay money, buy product and give up their time to join all of these MLM’s that seem to be springing up everywhere …
The dream, perpetuated by the MLM industry itself, is to earn a perpetual stream of income from your own downline that is, the people (usually friends, relatives, co-workers, casual acquaintances) that you recruit to also join the MLM ‘under’ you.
I guess that explains why MLM is so damn big!
The MLM industry currently consists of well over 2,000 companies in the United States, with sales of more than $28 billion annually. According to the Direct Selling Association (DSA), approximately 13 million Americans participate in this industry.
Exactly how lucrative can this be? Well let me share a personal story …
My father had a little clothing store in an Italian neighborhood, but he eventually decided to sell it. A young man (he happened to have been in my wife’s year at the same school, but that’s a coincidence) bought the store to ‘trendy up’ the shop downstairs.
At the same time, he opened up a little business upstairs; we didn’t realize it at the time, but he was the first local distributor for a well-known MLM.
Over time he spent more and more time ‘upstairs’ and less and less time in the store ‘downstairs’ eventually closing the clothing store altogether. He is still in the MLM business, although he spends very little time on it and still earns millions of dollars every year on it.
A friend of mine (who received $4.5 million from the sale of his own business two years ago) recently joined his ‘downline’ and is busy building his own MLM stream of income … he must feel that there is enough potential in this to justify putting all of that “ask me how” signage all over his brand new BMW!
Sadly, that is not the case for everybody, as the e-mail went on to mention:
Here are Facts about Network Marketing:
-Less than 1 out of 1000 people in this industry will ever
make 6-figures.
-90% of all business WILL fail within their first 5 years
(Entrepreneur Magazine)
-Over 30, Million (yes million) Americans have either
attempted Network Marketing or are currently involved in the
industry.
-Yet 90% make less than $10 a week.WHY! WHAT ARE THEY THINKING? Why does everyone think this is an
industry of easy-riches when the reality is that most are failing
dismally?
Pretty strong stuff … so which disgruntled person sent me this apparently anti-MLM message?
A Multi-Level Marketing Company!?
I guess they are trying to get a jump on the competition by saying between-the-lines:
“The rest of the industry may be in the you-know-what … but, we’re different … we have a support team … a unique model …”. Whatever. At least they brought some interesting information to our attention, if true.
I have already mentioned MLM in passing as one possibility in my Making Money 201 strategies, so what do I really think of MLM?
Going into MLM to ‘strike it rich’ is the same as going into any other business (and, make no mistake, to succeed in MLM you MUST treat it as a business) … you pays your money and you takes your chances.
Only put up as much time/money as you can afford to lose … and, do your homework (what is the commission structure; who’s in it; what are the products like).
And, just remember that if you DO get lucky, the company had better be around for ever if you want your business to fund your retirement … how likely is that?
On the other hand, going into MLM because you like – and, would use for yourself anyway – the products, and you are going in with the more realistic expectation of perhaps making a little extra income on the side, this might be a better way for you to get started (if you do happen to hit it big … more power to you!).
In which case, I would recommend spending no more than 50% of the profits that you make (i.e. commissions after paying for product samples, convention travel, motivational products … believe me you will be offered – and will buy – plenty!).
Invest the other 50% into your long term Investment Plan … even if you do strike MLM-gold, keep funding your passive investment strategy (e.g. buy-and-hold investment real-estate) and live off the income THAT produces.
That way, if the MLM stops, you don’t! This is no different to the advice that I would give to any business owner …
Most of the entrepreneurs are lured to this industry by dreams of riches and easy money. A better lifestyle, less work, more free time, nice cars, and lifestyle. Yet the VAST majority will fail.
This is true … most will fail … what you get out of an MLM will depend upon your expectations up front (easy riches, or supplement to your Investment Plan?) and the amount of effort you put it.
It’s not for me … but, it could be for you …
IF Buffett actually is investing money in MLM companies, and that seems highly suspect, I would guess it is a hedge against the downturn in the economy. As people lose jobs, they will turn to MLM more and more as bills start piling up and jobs get harder to find. It is a little depressing to me to think that Buffett would turn to this type of activity for his investments, but it makes sense in a lot of ways.
@ Special – I doubt whether Buffett did (I’ll ask him at the AGM when I see him in May) … but, it would be a good purchase. I’m not recommending MLM’s because of the < 1% success rate, on the other hand, it is ONE way of gaining extra income (and, we know what to do with that, right?).
Warren Buffet did buy Discovery Toys a couple of years ago so it could be true that he has bought others.
I agree MLMs need to lose the hype, there are no free rides in this world and being successful requires time and effort at first, but you can build a steady residual income if you pay your dues, and a business like this can certainly supplement what you are already doing, pay for retirement, medical expenses as you age, travel, etc. all while having some fun meeting other like-minded people.
Karen
@ Funfelt – Thanks for the info.
Please name the multi-level marketing companies that Warren Buffet bought. There would be no reason for this to be considered a secret — he is not a secretive person — so if he bought them, I would assume there would be a public record of it.
@ SuddenlySimple – I agree! I said: “For a start, I believe that is not true and simply an urban myth …”
I don’t know that I could even support and MLM by buying it’s stock. My taste was soured on such things years ago when I got sucked into a couple of them and found they didn’t really like someone who asked practical, hard questions of how they operate.
@ Martin – Once-bitten-twice-shy but [if you choose a highly reputable] MLM can be an astoundingly good business model for the operators, and if you join because you use and love the product (not just because you can propogate membership) for the members, as well.
BTW: 7million7years does NOT participate in any MLM either as owner, member, participant, or promoter … so there!
Very good post! I’m as much a fan of MLM as I am about “As Seen on TV”. There have been too many people getting the short end of the stick in the past. MLM has a very tarnish image to clean up. Perhaps Buffet will help polish things up a bit!
@ Jared – Dude, I didn’t know Buffett was Polish! 🙂 I agree on MLM, but it is still a possible way to make some money ‘on the side’.
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MLM are more than just making money! Its about taking on your own business. A lost skill in the Great USA. If you want to know what your future will be, look back at our history, and make use of todays technologies, with out reinventing the wheel.
A hundred years ago better than 65 percent of the population were their own boss/business owner. As you learn tax laws and use them to your advantage, you’ll understand the great possibilities you have as a business owner. Its not just making money, its about capitalizing on what you are already doing.
The start up fees are a business expence and deductable…
Training material use to learn from, then use as advertizing and promoting… Deductable (we get junk mail everyday which does the same thing)
Open meetings and Business seminars, teaching and entertainment events that are productive for your own good. Good for a night out with your spouse and a possible vacation destination. Take an extra day or two in the area, build relations and a get a foot hold in the area for possible business growth in the future. All Deductable
As I speek deductions, think of this as your savings account at a bank. A savings account may earn you 1 or 2 percent if any, but cost of living the next year goes up the same. As a deduction, it is given to you in tax returns up to what you develop as an income.
Being in business is truely a matter of balancing your debt and income. Take a look at what you now owe, compared to what you have in your saving and equity…
Now ask your broker or investor what your money is doing for you. If your money is making you more money every year than the interest you are paying out every year on mortgage, Line of Credits, Credit Cards, etc… You’ll feel alot better cashing in all of you savings and paying off your debt. With the debt you do pay off, any debt remaining, apply the extra funds to what is left…
@ Ron – I agree with your sentiments and there are those who would support MLM as a business choice … and, of course those would detract. I can see that you are in the “Yes to MLM” camp! GL 🙂
Can you tell me which Network Marketing companies…were bought
by Warren Buffett ? thanks
@ Megan – check Funfelt’s comment, above.
Buffett purchased “The Pampered Chef” a few years ago, and has nothing but good things to say about it. I think he has a tremendous appreciation for the founder who started the business with 3000 bucks.
Hello,
I simply wanted to comment on much I
enjoy your blog and it’s postings.
Thanks.
The following criticism you gave of MLM is illogical: “there is more money in OWNING an MLM than there is in being a member of one.” Your critique of MLM is illogical because the owners of ANY business earn more money than the members, employees or distributor’s, etcetera. There is no business or business model where an employee, member or distributor earns more money than the owner. I suspect you hated MLM before you gave your illogical critique; and then you decide to rationalize your misplaced hatred. When will you choose to eliminate the hate and replace it with a truth-based analysis?
@ S Nzinga – I’m not sure that I see any criticism of MLM’s here … just stating a fact … one that you seem to agree with. Good luck with your own MLM adventures! 🙂
You and I DISAGREE. Your statements about the business failure and success rates in MLM are misleading; the statements lead a reader to infer that the failure and success rates in MLM are different form other business. The failure rate in ALL businesses (including non-MLM businesses) is approximately 94 percent in the first 7.5 years. That statistic comes from entrepreneurs and authors Lawrence L. Steinmetz, PhD and William T. Brooks, in their book “How to Sell at Margins Higher than your Competitors (* see note below for the book).” The tone of your argument is designed to malign MLM. Instead, you should focus on showing people how to evaluate a business (ANY kind of business, including non-MLM and MLM businesses) to determine if the venture is a viable investment (you will do this if you are truly interested in helping people make savvy business decisions). Here are some guidelines to evaluating ANY business: (1) Timing: Would starting this venture put me in front of large trends? Would I be in an expanding industry or an industry on the verge of expansion? (2) Is there a huge expanding market? (3) Does the venture offer the marketplace unique consumable products; and is it possible to get regular long-term repeat customers (just like AOL, McDonald’s Hamburgers cable Television, etc). (4) Is it a solo act or is it possible to employ others to get more done? [link removed]
Hello Guy’s,
Great post, and great rebuttals… I am however in the camp of S. Nzinga Imhotep on this one. His argument is solid in the fact that any personally run business is doomed to fail in its first 3 years really. Why, simple education, plan, commitment, action…
No where is there today, especially in the USA a place where non-college bound high schoolers can go to get a specialty education program that teaches the A, B, C’s of operating any and all personal businesses. If there were, the success ratio, and more important the initial decisions of that person to pursue a business of their own would be based on knowing what is required instead of the grasping of stars.
Now as far as MLM companies making all of the money, well what company does not make the bulk.. The whole idea from the beginning of MLM is to take the load of running a company itself out of the equation and sharing the profits. Yes there is a building a business faction for the distributor, but it is a business of building a marketing team.
Failure today comes form all areas… the worst in my opinion is in the majority of the population being dependent of others, instead of being dependent of ones self. Every business takes a plan, time, and most important commitment.
Picking on any given industry today is a joke to anyones argument,,, its the over all system that is screwed up, and has created screwed up perceptions of reality. To succeed today a person has more choices, then sense… its a sad truth but everyone wants “push button success” instead of eduction, application, plan, and the discipline to work…
However the world is changing, the needs of today are survival, and maybe, just maybe people are ready to get off their @#%%$# and look, learn, apply, what is out there online at least in abundance…
Education, opportunities, and Google at your finger tips to research and find anything.
Thx for letting me share my 2 cents…
“debate is what makes us a modern society”… Socrates
dom
i looooooove mlm. its the only true equal opportunity under the sun
I agree with S. Nzinga Imhotep someone sounds bitter. Besides 100 out of 100 people, I think that’s 100% will die! (fact) that don’t mean we should give on living when we already know the final outcome will be failure to stay alive. Life and work will only return what effort you put in to it and unless you inherit or win the lotto, real wealth is created by having made wise investments in the past. The only problem is you can only invest in the present. The world needs more people to believe in themselves and not rely on some fantasy leader to fix all our woes, take a risk if you fail consider it an early attempt at success and get up and try again. And instead of “warning or discouraging “,people try being supportive and positive to those who choose not to be cowardly.
@ Aka_bet – Methinks you and S. Nzinga may be a bit on the defensive? If so, it’s totally unwarranted: if you read my posts, you will see that I am actually supportive of MLM as one way to increase income with little personal risk (read the Making Money 201 tab at the top of any page of my blog). I did say that I was never personally successful with MLM, but I was glad for the experience and don’t believe that my failures should ever deter others!
In fact, if you carefully (re)read this post, you will see that I am just giving some constructive advice on MLM ‘etiquette’ for those who do want to give it a go.
And for all you MLM’ers out there … best of luck!!
Those of you who are skeptical about Warren Buffet buying any MLM’s, please visit the following:
http://www.berkshirehathaway.com/news/sep2302.html
Warren Buffets Company did buy The Pampered Chef. I did not see Discovery Toys on the list, or recognize any of the others at:
http://www.berkshirehathaway.com/subs/sublinks.html
as MLM’s (although I am not familiar with all of the companies)
I believe a person should focus first on Business Education, before thinking of the Monetary Compensation. That’s what Kiyosaki is saying. So, treat money as a natural by-product of the “life-changing business education” that network marketing can offer.
Great discussion, A MLM is like any other business. There are no gurantees in life and only hard work with a great product will get you closer to a successful outcome. I have been in a few MLM’s and made some good money. I enjoy the cheap upfront cost to owning a business and all the perks that come with it. I like dealing with people and MLM fits me perfect. I have learned MLM’s are only as good as its product, compensation plan, upline/downline support team and management within the company. You must treat the a MLM as a normal business, you should expect your monthly income based on how much time and enegery you want to put into the business vs just off the attitudes of today that I want to be rich in 10 days. I know people who made a great deal of money and some that made nothing because they did not put in the needed time and energy and walked away with a very bad taste in their mouth. Again, I enjoyed reading all comments and look forward to reading additional post. [Link Removed]
@ MLM Beliver [sic] – Great summary! I, too, have a friend in each category: one is an ‘upline’ to the other: one makes somewhere around $1 million per month (needless to say, no longer does ANY work on his MLM business – he’s ‘retired’ – yet the money keeps rolling in) and the other is struggling … who can say why. But, that’s the nature of ANY business, not just MLM (which does have the advantage of low upfront cost).
This has been a fantastic read. I loved what everyone had to say. The discussion has been very informative and reinforced what I already believe and that is that we are the creator of our outcomes. If we make informed educated decisions about our future we can be successful and success isn’t always measured in $’s. I consider myself to be successful, but am not seeing the $’s yet. 🙂 Looking forward to the day that I do though…it will come.
Hi there
I have really enjoyed this thread. Indeed many have pre-conceived ideas about MLM without ever trying it. Some have tried it but chosen a weak team or chose not to read the materials provided for them to grow their MLM business.
I have my own business which lead me to MLM because it was a much smaller investment – low monthly overhead with the possibility of making a large return on my initial investments and yearly commitment (and the ability to grow exponentially without re-investing everything I profit).
The products brought more value to my customers and clients as well as a lot more to my bottom line. It increased my influence to help others far beyond the four walls of my practise. 10hours of work now provides 1000’s of hours within my business that I get paid for… and at the same time the products are transforming people’s health in a very positive way.
In turn I have received a lot more education on how to run a business because of the supprt of my team as well so much more experince in building rapport and relationships with many more people.
I also have created more time for my clients who need more and I did not have to increase my fees. I am planning now to re-brand my own business and expand as my bottom line increases.
For the first time in my life I actually feel in control of my finances and am finally able to maintain the insurance I need for myself and my family.
MLM and making sure I always have a passive income with always be a part of my life and once I was able to get over my own belief (and the reality that I had no idea how MLM worked until someone showed me) I am able to build a very comfortable income whether I decide to get out bed that day or not.
Be your best you and forget what the statistics say – they only limit you from your greatest version of the best person that can be!
Sincerely – Tammra Green
@ Tammra – I actually like the concept of MLM exactly because – as you say – “it was a much smaller investment – low monthly overhead with the possibility of making a large return on my initial investments and yearly commitment (and the ability to grow exponentially without re-investing everything I profit).”
I have tried it myself (without much success; but, that was my fault, not the fault of MLM in general, neither was it the fault of the system that I used … I just didn’t apply myself to it sufficiently). I have had a number of friends who have made a lot – and some others, little – money in MLM.
WHERE ever did you get those ‘facts’?
One thing to be aware of is 90% of people do not FAIL, MLM, they QUIT MLM.
Anyone can succeed in MLM, the only one who stops success, is the one who ‘quits’.
True a lower % makes the BIG MONEY, but the lower % does not GIVE UP AND QUIT. They have the passion, and make it happen.
I’m very successful in MLM, I’m self taught, don’t have a system and run my biz 95% via the internet.
Why? I’m a Mom and I want to be home with the kid. Quitting was not an option. I have a choice, make it happen or sit on butt and give up.
Well, I chose to make it happen.
Quitters, now they sit on their butt and then say they ‘failed’ because of their leader, their company, etc..etc…
Those who QUIT need to hold their own reins on their horse and not try to let someone else steer them.
MLM is NOT easy. Those who bust ass, earn the money.
So sit on your ass, or bust your ass. That’s success vs quitting.
@ Anon – The ‘fact’ was in an e-mail that I was quoting; what I said was: “there must be SOMETHING in this for all the people who pay money, buy product and give up their time to join all of these MLM’s that seem to be springing up everywhere …”
Warren Buffett bought the Pampered Chef
Great discussions, I am liking the dialoge here. keep it up! 🙂
MLM’s can be very lucrative, especially for their owners. Citibank owns a very big MLM company.
Wow, I really like everything here..
from the topic, the discussions, the experiences shared, etc..
wonder how I missed this great blog… and…
keep up the good work, Adrian
There is nothing wrong with joining a network marketing company as long as you run it like a business and most importantly have integrity.
Network marketing has such a bad name because majority of the people in network marketing are very greedy and are blinded by money which can lead into “screwing people over.” Also joining companies with very poor leaders that does not care about anybody but themselves.
I am currently working with a company … the world’s first … company, using the power and profit of network marketing to provide ongoing humanitarian aid around the world.
Since I have two business I am running, money for me is not an issue. I am in this company because of it’s main purpose which is humanitarian work in third world countries.
I am not in this company for money, however, I take this company very seriously and run it like a true business. As a result my team is getting bigger and bigger every day.
So in the end, I believe as long as you work hard, join the right company with the right leaders and not be blinded by money, then network marketing should not be a problem, however, a very lucrative opportunity.
“There is nothing wrong with joining a network marketing company as long as you run it like a business and most importantly have integrity.”
@ John – very nicely put 🙂
BTW: I removed the name of the MLM that you were describing, because I don’t allow – even innocent – advertising on this blog.
When someone says most people fail in network marketing. What they fail to tell is….that most people fail in ANYTHING they do. That is just the law of the land.
You have more Freshmen in college than 2nd year students, you have less Jr. than Soph. and you have even less Seniors than Jr…………IT IS A WEEDING OUT PROCESS for those that ARE WILLING TO DO THE WORK and succeed.
MOST PEOPLE FAIL in all industries and some crooks in all. But to blame network marketing as something less for being normal. is just wrong info.
Plus were else can you have no limit to your income if you go to work and do the work on building a network. and start up cost is lowest of anything so it is for everybody, plus it crosses industries …It is really selling FREEDOM of time, income and quality of life to the person. WAKE UP PEOPLE…IT IS THE BUSINESS MODEL OF THE FUTURE. and its TIME IS NOW. [link removed]
Network marketing is the only business can people make more money will less effort,only initial efforts needed,especially this is the only business can anyone do and anyone can earn…knowledge,office,experience nothing needed simply they need to invest their time properly and to dream big thats it.
“To be or Not To be”
That my friends is the question, You Are or Your Not, it’s that simple, pick a number stand in line, you’re a winner or a looser it doesn’t matter that’s why “Some Do, Some Don’t who cares some where some will”, you decide, but stop complaining and show the world what your made of …Traditional business or Network Marketing, who cares just do something and no matter what you decide it’s your efforts that count not the unscrupulous business man. I’ve heard so many complaints throughout the years and this is crazy.
Network Marketing:
INVESTMENT-A few hundred dollar
ATTITUDE-Nonchalant – will not worry about protecting their investment
Traditional Business:
INVESTMENT-Several thousand dollars
ATTITUDE-I gotta move – will protect their investment
I set-up a traditional pizza business in early 2009, my ideas and my recipes which I had put a lot of time and energy (Research & Development) in the last 22 years and then I sold it and allowed the new owner/licensed operator of the location to use my ideas and recipes for a 6 percent commission fee which is calculated off the “Total Sales” and they need to make every product the way I teach them (DUPLICATION), so am I rich, not even close, and guess what I spent money on several books, online resources and I don’t know how many hours of reading, reading and more reading (hundreds of hours) to learn all I could so that it would help improve my chances of success (Remember there are no guarantees oh wait a minute, there is Death & Taxes). Now I just have to start repeating my action as I did with the first sale and maybe I’ll start making some money and in fact I’m sure I will, did you get it people “DUPLICATION” someone once said “Imitation is the Sincerest Form of Flattery” So Imitate/Duplicate Something and remember if you’re not willing to do the work it doesn’t matter if you’re in network marketing or traditional business you’re going to FAIL an believe me many people fail in both concept you just have more to lose in a traditional business . Warren Buffet, Robert Kiyosaki and countless others are not going to make you rich only you can do that once you understand the secret, it’s there you just have to really want it or you can just be one of the sheeple because this world need good employees, supervisors, managers…maybe some of us just have to face the fact that that is all we will ever be and that’s OK.
BC, Laredo, Texas
PS: I’m not involved with network marketing at this time but have been in the past and in my personal opinion I love it, the products are great but it’s the marketing system that I love the most (It’s the simplest form of duplication, if only more people would understand it). Nobody made me buy the books and tapes but it made me who I am today and I’m grateful because I understand “DUPLICATION” and I hope one day you will as well. Thank you
All MLMers unite!!
We are entering into Post-Corporation Era!!
You got it Tan Cher Yang.
The industry has evolved. The next few years will be great for those who choose a good company to build their network.
Most people QUIT network marketing because their company FAILED them. They couldn’t make money fast enough due to a bad compensation plan, had a sorry product, were forced to maintain unrealistic purchase minimums, etc. Having unique, consumable, high-demand products that work along with a stable, reputable company that values its distributors makes a HUGE difference in someone’s success. It’s still up to the person though. Do your research. Equip yourself. If you want success, go to success.
The 10 most powerful words in the English language:
If it is to be, it is up to me!
That’s what entrepreneurial spirit is, MLM or traditional business, it matters not.
Peace Out
there isn’t really a very fast way of making money. you need time to earn more both online and offline.,-~
The truth about MLM is that it does work for anyone who does the work. It is the best business model for positive minded people and most people are quitters in life. However. [Name Removed] an mlm company is making more people into millionaires every year than any other business out there. They make it easy to win if you do the work of sharing a great product. We all network marketing everyday when we tell our friends about a great product. The difference in MLM is you get paid for every referral.
P
MLMers are the same no matter where I stumble upon them. Steinmetz was an Associate Professor back in the late 60’s who now makes a living peddling books, DVDs, seminars and the like. Klyosaki is a favorite at MLM conventions or call-ins, and his book has been criticized:
http://johntreed.com/Kiyosaki.html
http://www.sequenceinc.com/fraudfiles/2010/06/13/rich-dad-education-buyer-beware/
Small businesses do not have a 90% failure rate:
http://www.entrepreneur.com/magazine/entrepreneur/2007/february/173214.html
Those of you on the fence should read the works of Tracy Coenen, Robert FitzPatrick, Jon Taylor, and Dean & Laura Vandruff. They are MLM educators, derisively scorned as anti-MLM zealots by the Kool-aid drinking crowd.
So we have the” lazy loser” argument, the “you didn’t work your business” argument, etc., ad nauseum.
The only thing missing from the false comparison to small business owners or franchises is the false comparison that all businesses are pyramids—obfuscating the endless chain recruitment that is MLM with the pyramidal shape of corporations.
“IBO’s” –Independent business owners of MLMs own nothing—they are merely independent contractors—and the longer they stay in, the odds increase that they will end up owing.
As was previously stated, the only folks making money in MLMs are the owners and the TOPPs (top of the pyramid promoters).
MLMs can and do create financial hardship and damage to relationships.
In 2002 Berkshire Hathaway purchased The Pampered Chef.
Hi Adrian,
I enjoyed reading your spot about MLM’s. I have, over the years, lost roughly $15K in different MLM endeavors. However, just recently I found a newer MLM company with [sales message removed]
Thanks
Sean