Why do people always put down MLM companys?

Question

I mean the majority of the people that always say, Its a scam, and all of that stuff, probably never even been in one. And if they were in one and found out that it wasnt for them they go around saying that they are all scams. Most of the time when people say IT didn't work, just tell them that if they take out the T they will figure out the real solution to there problem. Network marketing is a legit way to get a product to the consumers. Actually it is the best for almost any product. Word of mouth advertiseing works better than anyother kind. If all network markting companies are scams then why did Warren Buffet buy out Pampered Chef. Just a question to make people think. So many rookies in Network Marketing go around spamming, Spamming is what turns people away. I am not saying that all Network Marketing is legit. There are people out there that to take advantage of the system and turn it into a scheme. But before you say anything about any company please do some research. Thats it

Answer 1

You are absolutely right, and some of the people who have already answered you are sooooo wrong. You have to understand that they have been pre-programmed to believe this is all a scam and that it is anything but respectable. I believe their ignorance is just shining through. MLM is merely an alternate way to market a product because stories sell. They choose not to have a brick and mortar store and all the expenses that go with it, and take the advertising budget and pay it out to the field.
Donald Trump said if he had to do it all over again, he would start with Network Marketing. Last time I checked, he was a pretty astute businessman and we could all learn from him.
Another factor is that most people don't and never will understand creating leverage, residual income as well as passive income. These people prefer to make others rich with their services, ie their boss, and think there is absolutely nothing wrong with that. Yet they shun us for recruiting people....what the heck do they think their boss was doing when they hired them?? For some reason THAT they consider respectable.
Those that knock this industry are just "sheep" who are willing to work for someone else for the rest of their lives and find that respectable. No worries, I know in my heart that I enrich people's lives by sharing my product with them and by showing them how to earn an income they never would have received working for someone else.
I also know that what I do is more than respectable and I also know that I earn more than any of these nay-sayers do.
You don't see us going to their jobs and knocking them, yet they have no qualms about doing that to us.
Sheer ignorance.

Answer 2

Network marketing is not the scam.........the way some of the companies are run is the scam. I have had family members burnt from some of the biggest MLM companies out there!!! Dont misunderstand me, these companies have history and quality products, but the way they want to get the products out to the consumer is what I dont like. They put people into positions of high stress,repeat sales, which forces a lot of people to be what they are not. I find that sad. I work for a company that relies on network marketing(and to be honest, what company doesnt?) but their approach is totally different. In fact, to be honest, they work very hard to keep themselves at arm's length from these companies to distance themselves. My wife and I have enjoyed this way of doing business for 6 years, and will be doing it for the rest of our lives. If you truely want to see a different way of doing network marketing, you owe it to yourself to check out our website and ask for more information, so I can show you the complete picture. Take a look at cyf.makemoreathome.com and go from there. Good luck to you, I wish you the best!! Neil M.

Answer 3

Okay, did some research - here it is from the Federal Trade Commission:

Multilevel marketing plans, also known as "network" or "matrix" marketing, are a way of selling goods or services through distributors. These plans typically promise that if you sign up as a distributor, you will receive commissions -- for both your sales of the plan's goods or services and those of other people you recruit to join the distributors. Multilevel marketing plans usually promise to pay commissions through two or more levels of recruits, known as the distributor's "downline."

If a plan offers to pay commissions for recruiting new distributors, watch out! Most states outlaw this practice, which is known as "pyramiding." State laws against pyramiding say that a multilevel marketing plan should only pay commissions for retail sales of goods or services, not for recruiting new distributors.

Why is pyramiding prohibited? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people -- except perhaps those at the very top of the pyramid -- lose their money.

The Federal Trade Commission cannot tell you whether a particular multilevel marketing plan is legal. Nor can it give you advice about whether to join such a plan. You must make that decision yourself. However, the FTC suggests that you use common sense, and consider these seven tips when you make your decision:

Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid.

Beware of plans that ask new distributors to purchase expensive inventory. These plans can collapse quickly -- and also may be thinly-disguised pyramids.

Be cautious of plans that claim you will make money through continued growth of your "downline" -- the commissions on sales made by new distributors you recruit -- rather than through sales of products you make yourself.

Beware of plans that claim to sell miracle products or promise enormous earnings. Just because a promoter of a plan makes a claim doesn't mean it's true! Ask the promoter of the plan to substantiate claims with hard evidence.

Beware of shills -- "decoy" references paid by a plan's promoter to describe their fictional success in earning money through the plan.

Don't pay or sign any contracts in an "opportunity meeting" or any other high-pressure situation. Insist on taking your time to think over a decision to join. Talk it over with your spouse, a knowledgeable friend, an accountant or lawyer.

Do your homework! Check with your local Better Business Bureau and state Attorney General about any plan you're considering -- especially when the claims about the product or your potential earnings seem too good to be true.

Answer 4

I had the pleasure of doing management consulting work for an MLM company for a little over one year. I can't speak to all of them, but I can speak to this one (although, out of respect for my client, I won't tell you who they are).

The management of this company looked at their sales force as a bunch of rubes who existed solely to get fleeced. To the company, they were nothing more than a bunch of suckers who would greedilly soak up any line of BS the company threw at them, if they were told that it was part of The Program. There was no respect, only contempt.

If you want to sell, fine. Go find something to sell. But don't for a minute think that MLM is a respectible way to make a living.

BTW, to answer your question: Buffett bought out Pampered Chef because he is smart enough to be at the TOP of the pyramid, not the bottom.

Answer 5

I think it's because there have been some highly-publicized MLM companies that turned into scams, if they didn't start out that way. Think, "Dare to be Great". There can be so much more profit potential in selling distributorships than in moving product, that the product side can become unimportant very quickly.

Answer 6

... because when you are done convincing yourself, you are still ripping off the product buyer - who is really paying pennies for the product they are buying [which is generally no better - and often times worse - than a similar product available freely over the counter for considerably less] AND dollars in commissions to you, AND the one you recruited, AND the one he recruited AND never mind your boss on top of your level gets paid out of the same fund too, AND however many more of you there may be...

I've looked at both ends of that food chain - and quite frankly - the items sold are often manufactured/produced out of country in order to produce at such a low cost, with most of the profit in "empty" sales commissions you most likely will not see much off anyway. This hurts our already s***ing economy by using cheap out of state labor, and by selling some crap that usually won't perform as advertised anyway.

I don't mind paying a "middleman" for the effort, time and inconcenience of having procured, stored and provided an item I am looking to buy, but by golly - I have a real problem with feeding an extended family of middlemen for something that is literally worth pennies.

Answer 7

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Answer 8

because.... they think they are all the same, some scam. It's because they don't know better.

-Angela
http://www.ratraceclub.com