Showing posts with label multi-level marketing. Show all posts
Showing posts with label multi-level marketing. Show all posts

Wednesday, March 25, 2009

Multi-Level Marketing: Business Opportunity or Scam, 3

Continued from "Multi-Level Marketing: Business Opportunity or Scam, 2"

I continue under the assumption that I'm correct in concluding that the "pyramid" aspect of MLM is not a negative from a Biblical perspective. That leaves the question of whether you can find any MLM programs that don't use a lot of hype to recruit agents and that sell competitively-priced products.

Since the American advertising establishment thrives on hype -- e.g., using the right brand of shampoo will make you vibrant and attractive -- I don't know if we can actually find a company that doesn't use it. That leaves pricing.

I am aware of one MLM that sells products which a) just about everyone uses, b) market their products at competitive prices and c) offer A+ service.

Yes, I am an affiliate of this MLM, but I joined because it meets the aforementioned criteria. If you're curious, you can find out more here:

Online Webinar

If, after watching the presentation you think you'd like to sign up, then send an email to me at:
gravelbelly@gmail.com

It's not for everyone, so be sure it's what you want before you take the plunge.

Thursday, March 19, 2009

Multi-Level Marketing: Business Opportunity or Scam, 2

Continued from "Multi-Level Marketing: Business Opportunity or Scam"

One of the criticisms leveled at MLM plans is that they are "pyramid schemes". That is, that if you recruit five people, and they each recruit five people who, in turn recruit five people, and so on . . . you will soon run out of people. It's obvious that we can't all get rich recruiting other people, since people are a finite quantity.

It's true that MLM markets reach a saturation point at which growth must slow down. Of course, that's true of companies that enter any market. Early explosive growth tapers off.

But that does not mean that stagnation is inherent in the nature of MLM. Amway, for example has been going strong for many decades. How is this possible?

You must take into account the fact that since the days shortly after Noah, new people have been born every day. That means new people who are looking for opportunities come of age every day.

This, of course was part of God's plan from the beginning.

So God created man in his own image, in the image of God created he him; male and female created he them. And God blessed them, and God said unto them, Be fruitful, and multiply, and replenish the earth, and subdue it: and have dominion over the fish of the sea, and over the fowl of the air, and over every living thing that moveth upon the earth. (Gen 1:27-28)

Please understand, I'm NOT saying that the Dominion Mandate was a Multi-Level Marketing plan. But God's blueprint for dominion required an expanding population. As the number of people increased (geometrically), each generation would subdue a larger portion of the earth.

Mankind would reach total dominion at the same time that its population reached a saturation point.

The bottom line here, is not that MLM is inherently bad or that the concept won't work. The problem lies in overpriced products and massive hype. I want to address those issues in another post.

Thursday, March 12, 2009

Multi-Level Marketing: Business Opportunity or Scam

I have been involved in several multi-level marketing (MLM) operations over the years, including the granddaddy of them all, AMWAY. I never did well at them, and I tend to be dismissive toward things I'm not good at.

The whole MLM premise is that if you have a great product, you can not only profit from selling it, you can share in the profits of others whom you recruit to sell it. You also get a return from those whom the others recruit, and so on. These folks are called your downline.

Thus, if you recruit three people, and they each recruit three people, you have twelve people in your downline. Each generation of recruits [theoretically] increases geometrically.

The operational word here is theoretically. Of course, if everyone succeeded at recruiting, you'd soon run out of people. But that aspect does not bother me as much as another.

The fact is that most people will not recruit anyone. And those who do seem to need regular doses of hype to keep them motivated. In order to succeed, they must surrender their lives and personalities to the program.

Those who aspire to MLM success must eat, sleep & breathe their company line. There may be exceptions, but most MLM programs encourage -- indeed, require -- total immersion in the program's culture to attain success.

You can find one of tne of the reasons for this in the product's pricing. MLM products are, on the whole, more expensive than comparable products in the marketplace. They have to be, in order to pay commissions all the way up the line.

Does this mean that multi-level marketing is inherently bad? More on that in my next post.