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Has it been proven enough yet that these generally are set up as ponzi schemes, and those that are actually legal have products that no one could make a living selling on their own, thus making the recruiting part necessary?

I am sure there are those who will respond with their company being the best and wanting to get my email etc...or those who are making big bucks but won't show me a financial statement despite calling this a business opportunity (who would start a business without seeing operating statements?). But I want to hear from those who are actually convinced about network marketing/mlm without having to sort through the above mentioned replies.

So, is anyone out there, or is is this industry dead?

2006-08-29 11:35:15 · 7 answers · asked by Marcello 2 in Business & Finance Small Business

ibofightback - thanks for the answer, but going over your numbers I had to comment.

You say Network Marketing Firms distribute over $100 billion a year in goods and services and there are 8-10 million distributors...well simple division means that is $10,000-$12,000 annual sales/distributor!!! Even at 50% commission you could earn more with minimum wage in a year!

With all due respect, your numbers give more credence to the belief that network marketing/mlm is a pure ponzi scheme than anything I have heard.

It seems to me more than ever that the issue with network marketing/mlm is that its all about recruiting others to do the work, and not selling the products themselves. Of those 8-10 million distributors, how many can possibly be distributing enough on their own merit to make a living? Its all about making money off the efforts of others isn't it?

2006-08-29 13:04:16 · update #1

7 answers

Hi there,
The industry is still growing around the world. Like any industry it has its ups and downs, but if you find a decent company with decent products, then it works. If a company is indeed promoting some product or products that you could sell without the "scheme", then be skeptical. The FTC would certainly look unfavorably upon them. But if you look at companies like the granddaddy of MLMs, Amway/Quixtar, it has products like Nutrilite that have the backing of folk like Asafa Powell - world 100m sprint record holder. And they didn't approach him - his brother got him on the products! Nutrilite is now the biggest nutritional brand in the world - and you can only get it from Quixtar in North America.

To quote one site I found with stats on MLM -

There are in excess of 1,000 Network Marketing firms that distribute over $100 billion a year in goods and services. It is estimated that eight to ten million Americans are either part-time or full-time distributors. Tens of millions more are customers

Good products = potential good opportunity. Bad products = potential scam.

2006-08-29 12:48:03 · answer #1 · answered by David Steadson 3 · 0 0

I think that one of the things that you forgot to take into consideration with the statistics and your math is that Networking Marketing is no different than any other business that requires hard work - 80% of the income is being generated by 20% of the people involved. So to do a simple mathematical equation is not an accurate depiction of what is happening in the world.
Also, it sounds to me that you have already made up your mind and have judged the industry as full of feeble minded losers. However, if you are truly intent on doing your homework and checking out opportunities then you will find that there are reputable companies with honest, hardworking, intelligent individuals who are riding the wave of the new millenium and the job market of the future. I feel that Network Marketing has been going on for generations and continues to grow today - you are network marketing every time you tell someone about a good movie, or a new restaurant, or a new tv show they should be watching. Thats what I do - simply inform people of a choice - I don't make false promises, I don't make millions but I do have the time freedom and luxury of knowing that I am doing something I love and no one is getting hurt.

Take the time to explore the options that are out there....don't get hung up on the dollars - you are the only one that will decide what you will make. And that will be determined by your committment and determination, you need to examine the business model - not someone elses paycheque.

2006-08-29 23:00:29 · answer #2 · answered by Monica M 2 · 0 0

My guess is you have sour grapes on the whole industry, based on a lack of knowledge. MLM is simply an alternate way to sell a product and has nothing to do with making money on other people's efforts. Some companies choose to sell their product in retail stores. Their overhead is very high as they have to have a building, advertising, building maintenance, trucking and logistics, employees and all the expenses associated with all of the above. What some companies choose is to market their product differently. Usually it is a unique product that they don't want sitting on the shelves of a store. So they put the product out in the field and pay the people who are actually moving their products, and they can afford to pay them MORE than they would an employee in a brick and mortar store.
Some people (many) call this a "pyramid scheme". This is where there ignorance shines through. Every job is a pyramid scheme. Do you know of a Wal-Mart employee who earns more than middle management, even if they do more work? Or an employee who earns more than a CEO of a company? I hardly think so....therefore, most who call it a pyramid scheme have no idea of what a pyramid really is.
With MLM you are paid in direct proportion to your efforts...simple as that. It is physically impossible to earn the same kind of income at a job that you can earn with network marketing. There is no cap on your salary, you are paid for whatever product you move. Some MLM companies pay more than others, depending on whether they have reached the momentum stage or not. If you have the right product and people are wanting it, and you work it like a million dollar business, you will earn incomes that will far surpass anything you could dream of as a wage earner.
My proof is in my monthly paycheque and I KNOW what kind of incomes are being earned and not just by the top people in the group but by all members.
No need to worry about me asking for your email, as I do not believe this is for you. My job is to help people with a positive attitude earn incomes that were never possible for them, $10k/mo is not unusual, but I am only looking for serious business builders who have decided to take control of their own destiny.....and I find them every day. There is nothing more rewarding than having someone come to you and thank you for turning their life around. That's what I do.

2006-08-30 03:09:12 · answer #3 · answered by Anonymous · 0 0

The network marketing industry is still going strong and it works. Many millionaires are made each year through network marketing. You can earn up to $1092 per month just for being a member. You can earn much more with a little effort. You can sign up for a free trial by clicking here and filling out the form.
http://jsnapp.prowealthresults.com/?sour...
During your free trial make sure you check out the members area to learn about the pay-plan and training and check out your geneology. Make sure as soon as you start recieving emails from PWS saying a member in your downline just upgraded that you upgrade as well or you will lose that person in your downline.
I have been searching for over 5 years for a program like this. I have been paid every week since I joined.

2006-08-29 22:40:51 · answer #4 · answered by Anonymous · 0 0

Hey Marcelo you idiot, its more like 100 million distirbutors. We are taking over the world. You have no clue. Losers like you will be sorry you didnt get in 5 years from now when there is no opportunity left and we are sellin all the products out there.

2006-08-29 21:39:31 · answer #5 · answered by Beelzebub 1 · 0 0

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2014-07-23 22:20:06 · answer #6 · answered by Anonymous · 0 0

THYE ONLY PEOPLE THAT ARE DOING THAT ARE TERMINALLY STUPID OR BRAINDEAD PEOPLE . yOU WERE RIGHT IN DOING THE MATH ALSO THAT YOU CAN MAKE MOORE AT MINIMUM WAGE THEN DOING THAT .

2006-08-29 20:17:05 · answer #7 · answered by Anonymous · 0 0

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