- Some MLM 'Business Opportunity' Facts To Keep
In Mind
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- Yes, a small percent of the people recruited
into the MLM industry achieve a modest, 'satisfactory' income stream after
costs, and a scant few even make 'big money'...but the overall facts are
bleak: there is an industry average 99% dropout rate of those who sign
up with MLM companies either as 'retail customers' or as 'business builders.'
So, if anyone comes on to you talking about 'six-figure incomes'
or chatters about how "I did it, so can you!", or deluges you
with a dozen other reasons you need to "sign right up now and get
started!"...take my advice and run, don't walk. If an MLM pitch primarily
promotes the 'business opportunity' and mentions the products in a secondary
fashion...that's another huge red flag. Unless an MLM product line
is the *dominant part* of the pitch, and is backed up with plenty of clinical
data and consumer satisfaction, we suggest you stay far, far away.
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- Regarding the excellent company which sells the
nutritional supplements I recommend, for the record, only 4.8% of the company's
330,000 active associates earn $1500 a YEAR or more. And it took
most of those 4.8% YEARS to get there. Also, that is not a NET profit
figure as it does NOT include their time and expenses. Granted
not all of the 330,000 signed up with the intent to work the 'business'
but the majority certainly did. The appeal of 'easy money' is just
too strong. Most MLMs also rave about all the 'tax advantages' the
IRS will shower upon their associates if they just sign up and 'make an
effort' to do the business. My recommendation is to speak to a CPA
or other tax expert before taking any such deductions as an MLM 'sales
associate.' Being audited is not fun.
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- However, if you sincerely feel you are that rare
individual with the *extreme* discipline and unfailing drive to fight your
way to that tiny percent of MLM sales recruits who 'make it' - and like
having such exceptional supplements to sell and to help your fellow man/woman
to honestly better health - you may want to explore the business side of
this company. You might even earn enough to get your own products
free each month. (In fact, only about 15% of this company's 330,000
active associates earn enough to cover the monthly costs of their own supplements.)
Bottom line - if you aren't willing to work extremely hard, often
for years, before even modest returns *after your costs* come your way,
forget it and do yourself a favor and purchase the four primary supplements
above as a retail customer. You can find out all about this
excellent company Here
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- Oh, and for the record, here's how MLM slicksters
gratuitously rationalize and dismiss the astonishingly high MLM industry
'casualty' or drop-out rate...
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- Blaming The Losers
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- How upline recruiters 'morally' justify pulling
new people into MLM schemes...and profiting by it...
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- Even as millions of consumers are solicited into
MLM and then quit after losing money, most do not understand WHY they lost.
They are shown the luxurious lifestyles of the top promoters - less that
1% of the entire sales organization - and are told "you can do it,
too!"
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- When the recruit doesn't succeed...which occurs
over 99% of the time...the upline promoters convince them (or con themselves
into believing) that the recruits personally "failed" and
that it was "their own fault." Most recruits have no idea of
the sheer scale of people joining, losing and then quitting. They
are led to believe that they are unusual in their "failure."
Many take it personally and become depressed. Individual lives
can be harmed and families damaged. Upline people dismiss them as
'losers' or those who simply couldn't 'discipline' themselves or run the
MLM scheme 'like a business.'
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- Consequently, dropouts not only do not complain
to the authorities but they do not even warn friends or relatives
to stay out of MLM. Their SHAME and disappointment are covered up
with silence. The recruitment program continues largely unabated.
And the dropouts will never know how the deck was stacked against them
from the beginning.
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- As has been previously illustrated, the massive
failure rates among those who invest in MLMs have almost NOTHING
to do with the individual recruit. These multi-billion-dollar consumer
losses are due to the pyramid business MODEL. Retailing is unfeasible
on the scale needed to even meet basic expenses for 99% of recruits, and
the RECRUITMENT-based income plan is DESIGNED so that MOST will lose. It
cannot be otherwise. For a few to win big, basic mathematics requires
the overwhelming majority to lose. "Anyone" can NOT do
it.
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- Dropouts thwart the recruitment process at the
lower levels. The people trying to build the downline are always dependent
on others below to "duplicate" the process. When their
new recruits become discouraged and drop out, the rebuilding process must
start yet again. And while the hopefuls engage in this constant rebuilding
effort, they are also continuously paying money to the scheme and its organizers
in product purchases, training fees and marketing costs as
well as incurring other normal business expenses.
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- With its ongoing operation, continuous enrollment
of excited new recruits and public displays of WEALTH and success by the
organizers, the organization appears to the uninformed as viable, stable,
and successful. Most schemes can go on for many years by successfully recruiting
new people to refill the bottom ranks, which become open as past recruits
quit the business in "failure." Eventually, they must move to
new markets, usually in other countries and some also use the ploy of changing
their names in order to continue deceptive recruiting.12
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- 12 For examble, a 'new' company called Quixtar
is just a new name for the largest and oldest of MLMs...Amway.
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