Affiliate Marketing Industry

We need a general MLM related forum in Yahoo Group to response MLM related topic. What you think,?

Hello,

Laura J’s answer is riddled with classical MLM issues. She comes across as a nice person so people want to believe her and maybe even sign up with her, this hardly makes what she states as fact.

Let’s address:

She states the economic impossibility of making more money off of recruiting than sales. She evidently is not as educated on MLM as she professes because I can attest first hand that there are MLM companies who charge exurbanite fees to join and then offer bonuses to the reps when they sign people up. The image that its about product sales is given but the reality is its quite possible (and quite common) than one pays several hundred dollars to sign up and earns thousands merely by the bonuses for signing others up without regard to the product. As far as the economy of it all, well, in reference to the head company even if they make little or no money on the training materials that are given back as bonuses, they still stand to only gain from having the network grow as even a tiny portion of sales from each rep is a gain to them. So DO NOT be swindled by such statements as “economic impossibility” that people in MLM like to throw around to thwart you from the actual truth.

She states further that a study of Network Marketing shows that its about sales. This of course is mere rhetoric since even a simple investigation into the largest public MLM companies show that the average sales per rep are less than $100/year. Look it up on yahoo finance as all the data is there. If it was about sales as oppose to recruiting, this would not be so despicable. The fact that the head company stands to gain no matter if the rep does sales or recruits a number of people would make most people cringe if they would ACTUALLY do an investigation into the numbers.

As far as the product being in demand, this again is merely propaganda used to convince people to sign up. If the products were in such high demand, why are they only being sold through reps? Wouldn’t it be logical for the company to offer the products on its own?

It is very true that you will not make sales selling vinyl records, but you can bet if you asked the countless people with garages full of MLM product they never sold that vinyl records are hardly the only thing that can’t sell. Not to mention, considering how MLM is set up, there is chance that you could sell vinyl records because the reps joining would be the best customers buying it in droves selling the dream. Yes, I am being facetious, but the point is clear.

She also states that leverage is the reason that they don’t share how much money is being made. At this point, I really have to wonder if anyone could possibly be so easily fooled by such a line. The fact that high incomes are used to draw people into MLM. The fact is that people never are willing to prove the high incomes they used to draw people into MLM. You can call it leverage or whatever you want, but if you are going to use high incomes as a draw but can’t back it up, then you are a fraud.

The fact that it is an equal playing field has no bearing on the above. No one is debating whether people in MLM have the equality of opportunity to achieve the same thing. The fact that she would use this to answer the question regarding proving incomes is nothing but a bait and switch, where she answers a question we all agree on and tried to imply that she answered the question she had no real answer for. It is this very style of used car salesman mentality that makes MLM so dangerous because the average person doesn’t recognize this type of swindle.

She states, “what I make should not influence what someone else can make”. Yes, but when you use what you make to influence someone joining, you should be able to verify that unless you are lying and a fraud.

As far as MLM companies not going public on recruitment, perhaps again a simple investigation into the public issues with Amway would be nice. The average Amway rep sells far less than $100/year in sales. Yes, Amway itself has made billions, but its plain and simple that it is by merely having countless reps recruit other countless reps all selling the bear minimum on average. Amway does well with this, the reps do not unless you believe the commission on $100 annual is good money.

So either this public company is made up of reps making about 1 hour of minimum wage work a year in incomes, or they are making money on things other than sales. Either way, the company was able to successful go public without its reps doing large amounts of sales. As they say, the proof is in the pudding.

I would imagine being the owner of the parent company is a great way to make money as long as you can sleep at night knowing you are screwing people to make your money.

It would be nice if someone who argues for MLM would actually be able to back up the statements they say for once and actually answer the questions posed to them without redirecting to other topics, but I suppose when you have an entire industry that is complete fluff you can’t expect any better.

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