Handling Objections: Is MLM a Pyramid Scheme?

www.firstclassmlmtools.com Discover proven network marketing ideas and strategies that will grow your business faster at www.firstclassmlmtools.com Tim Sales built an MLM business with an income of over 0000 per month with 2400+ new distributors joining per month. He now creates training tools and sales aids for everyone in network marketing.
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  2. MLMsellsSnakeOil says:

    MLM is a Pyramid Scheme! Why do you recruit people? Because it can’t work unless there are enough people below you who lose money so you can make money. And those people who don’t make money won’t admit it, as it would hinder their efforts to recruit other no money making consultants in the hopes of making money off their efforts. It’s a brilliant scam! The first clue that MLM is a scam is the amount of crap out there like this, that tries to tell you it isn’t…

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  5. atlantas360 says:

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  6. slavacheban says:

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  8. MLMsellsSnakeOil says:

    MLM products are sold by recruiting a revolving door of new “reps” who buy products to “do the business.” And since people perceive the opportunity as dwindling with each new “rep,” market saturation requires promoters to recruit elsewhere. So MLM’s quickly evolve into Ponzi schemes, requiring the opening of new foreign markets and/or new product div’s to repay earlier investors.  It’s not turnover, but recruiting to replace dropouts.

  9. Climb2win says:

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  10. MLMsellsSnakeOil says:

    MLM’s nearly always lead to certain loss for new recruits. The founders and a few are at the top of their pyramids of participants are enriched at the expense of a multitude of downline participants, approximately 99% of whom lose money. The sale of products is distributor-driven, not market driven. Most products are sold to new participants to get in on this “ground floor opportunity.” Very few products are sold outside the “business”. One more reason MLM is a Pyramid Scheme.

  11. MLMsellsSnakeOil says:

    BTW, I asked you what company you were involved with, and you have ducked ever giving me an answer. What are you afraid of? Let me Analyze it, and if I don’t think it exploits people I will say so. The MLM industry is in bed with the GOP, gives them tons of money and under Bush they stopped prosecuting Pyramid Schemes. Bush has appointed someone heavily affiliated with Amway to head the FTC. The fox guarding the chicken coop!

  12. MLMsellsSnakeOil says:

    Once again, MLM distributors recruit their own competition. How does this make any sense? It doesn’t make sense for a direct seller to recruit their own competition, unless selling pays less than recruiting. This is why MLM isn’t about the product, because the structure of their organization pays less importance to selling than recruiting. 

  13. MLMsellsSnakeOil says:

    The Amway decision of 1979 ruled in favor of Amway because the courts didn’t understand the difference between market and total saturation. In a town of 100,000 people, the notion of total saturation of 100,000 distributors would be absurd. But the market could be said to be saturated with 10 or 20 distributors, after which adding more distributors would mean less and less opportunities for them to thrive in the market because the market is too saturated.

  14. MLMsellsSnakeOil says:

    SELLING PRODUCTS IN MLM DOESN’T PAY A DIME AS THE OVERHEADS ARE NOT HIGH ENOUGH TO COVER YOUR COSTS, WITHOUT CHAIN RECRUITING. If I am a Arbonne Distributor and make a $50 sale on lotion, my commission is 4%=$2, my DM makes 8% of the sale and the EDM Makes 8%. So, the person who does the work, doesn’t get paid as much as those above in the Pyramid. 4% commission is so low, that the only incentive to make money is to recruit. Do you understand this?

  15. 1074kaehler says:

    – No, they are expected to sell as much product as possible to everyone whom walks into the door. Once again, you make reference to the way some companies distributors choose (wrongly) to move there product. It has nothing to do with the industry. Unlike you, I have work to do. You have no foundation to base any of your comments on. You are a bored person, who in all reality, does absolutely nothing in any business world. I have taken to much time discussing this with you.

  16. MLMsellsSnakeOil says:

    My wife’s company pays good wages+ benefits. She, nor her employee’s are not expected to chain recruit their friends, family and everyone else within 3 feet of them. They don’t pay fee’s or have to sell or buy a certain amount of product to be able to collect their pay checks. Companies protect territories because if you become over-saturated, the outlets cannibalize each other and none of them make any money. MLM is like working at a car lot, with a salesman next to every car…

  17. 1074kaehler says:

    – In many instances, customers will pay you more per purchase. The only difference is, as James Paul Getty said, ‘I would rather have 1% of 100 peoples efforts, than 100% of my own.’ You simply just DON’T UNDERSTAND THE INDUSTRY. It is mind boggling to see how far off you are, yet you throw it out there with some type of ignorant confidence, and are completely wrong. Skirt the laws? It’s been investigated more than any industry on earth! You just don’t understand it.

  18. 1074kaehler says:

    – RECRUITING PEOPLE DOESN’T PAY A DIME IN ANY LEGITIMATE NETWORKING, REFFERAL, OR DIRECT SALES MARKETING. WHAT DON’T YOU UNDERSTAND ABOUT THAT? You are flat out WRONG. What company are you referring to? I know most of them, and am very well versed on compensation plans across the board! Your don’t ‘indirectly’ make money doing anything. You simply are taking something, falsifying it, and twisting it. Give me ONE example of a legitimate company that operates this way?

  19. MLMsellsSnakeOil says:

    Once again, in MLM there are very few real customers to buy the product. Most of the sales are made by the bottom line distributors and that money is funneled up the Pyramid of participants. With more than 5 commission levels to pay out, most MLM products are overpriced and of inferior quality. When MLM’s recruit, it is never about the product and always about the “opportunity”. This is so much the case, that the product no longer seems relevant.

  20. MLMsellsSnakeOil says:

    Yes, Most MLM companies allow you to sell to customers. But, the commission structure is so low that it is not worth anyone’s while to ever do this, the only money is in chain recruiting. Forget the product, that is just a front for laundering the money. You INDIRECTLY make money “recruiting distributors” because the margins for direct sales are so low, and like I said above the only money is to recruit a downline. This is how MLM companies skirt the Pyramid Scheme laws.

  21. 1074kaehler says:

    – …clearly don’t understand traditional business or MLM? A stay at home father (which is a good thing), that has no experience in MLM, and doesn’t own a business either, who’s wife is a manager for a string of pharmacies, has nothing better to do with there time than get on a thread and post inaccurate information about a business he doesn’t understand, because he read the writings of one person, and got his hands on some ebooks, and looked online? Stunning. Best of luck to u

  22. 1074kaehler says:

    – …it is actually more of a title for many direct selling companies, and is a big disadvantage to many. For instance, Mary Kay has ‘regional managers’, but to become one, do you know what the qualification is? You must have a certain number of distributors, sponsored by you, in your area. Hmmmm. Look, you don’t own a business, you aren’t a member of MLM, and your knowledge is shoddy on both. So, why do you continue to throw around insults and misinformation, when you….

  23. 1074kaehler says:

    – …successful pharmacies? Is that not part of her job? Does the manager of one of her pharmacies make more than she does? No. She is paid on the production of her people below her. And if that begins to fail, guess what happens? I owned two franchises’, and by the way, you don’t buy a McDonalds, you buy the actual land a McDonalds will be built on. Your comparison agains direct selling is far from accurate as well. Only SOME companies have territories, and not how you think..

  24. 1074kaehler says:

    – You make money on anyone purchasing products. If products are not being purchased, money is not being made. Recruit all the distributors you like, if the product is awful, and they cease to purchase it, you will not be compensated. It’s that simple. You can go and try to sell product to the world. Or you can find a couple people who would like to do the same, train them, and be compensated for it. Does your wife make her money by not training and teaching others how to run…

  25. 1074kaehler says:

    – Once again, you are wrong and inaccurate. Most companies allow you to just sell to customers. Actually, I don’t know any that don’t. They do not have to sign up as a distributor, nor are they required to purchase anything. Without customers, your business will surely struggle. However, if that individual would like to sell, or introduce the product to someone else they can also receive commision from it. It’s that simple. You don’t make any money on ‘recruiting’ distributors.

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