For a portion of independent retailers, LuLaRoe is to economic opportunity as Goop is to wellness: It’s for ladies who already have it all. The ability to throw down $12,000 to start a LuLaRoe business and work 30 hours a week sometimes comes from a place of privilege, not desperation. Some mothers who are just looking for a hobby have husbands whose salaries are already high enough to support their families. “I felt like I was trying to keep up with the Joneses to stay in business against these other consultants who can afford to drop a $500 order every few days,” Ashley says.
Because they’re constantly opening up in new international markets like Latin America or India where the concept of MLMs is novel. They can start the whole process of creating a pyramid anew in these countries. Even with this international outreach, however, MLMs will eventually reach a wall where they can no longer recruit new people into the scheme, and even the longstanding billion dollar companies will collapse.
But here is the problem that these whiteboard presentations always manage to omit. Of all the thousands of network marketing plans available now or in the past, if only one of them had ever had even a single line active to only 14 levels deep, that alone would have required the participation of more human beings than exist. That math is black and white, too. Level 14 is populated by 514, or about 6.1 billion people, the entire population of the planet, in addition to level 13 with 1.2 billion, all the way up to you and your original five. You can answer "Oh sure, but a lot of the people don't get all five or they flake somehow," but you forget that the entire premise has already eliminated those who flake or who don't get all five. The unfortunate conclusion is that a fully invested network, upon which the whiteboard presentations are dependent, has never actually happened.
MLMs often teach their participants to recruit their best customers. What kind of normal business turns one of its best assets into a liability? Imagine if the local Starbucks started encouraging all its best customers to open up their own Starbucks, where all the customers would, in turn, be encouraged to open up their own Starbucks. How long before there are too many Starbucks and no paying customers left? Which brings us to point #2...
False Profits is about the "old" American dream and the new which, at its worst, turns a longing for inner prosperity, to greed. "False Profits is a true story about someone who lost faith in the prophets, profits, and promises of pyramid schemes and multi-level marketing, but gained profound knowledge of themselves." It is also a call to quest into the self and come out changed. False Profits is a call for Americans to salvage all tendencies toward greed - in this sense the book is a 'confessional' story. The love of riches by Americans is, of course, complex; a long story going back to the day the Pilgrims landed at Plymouth Rock, hoping for freedom previously denied them. In a style available to the casual reader and seasoned business-person alike, False Profits succeeds in giving another perspective to what dominates so many Americans - the obsessive need to get rich quick. This book asks us to consider another self - the soul that is inner and waiting for recognition within the extraordinary business of being alive. -- From Independent Publisher