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...
Shortly after, Stern began to pull in anywhere from $18,000 to $24,000 a month in sales. She was working 80-hour weeks with seven women selling underneath her. “The moment I woke up, I was taking pictures and answering questions,” she says. “My husband had to do the food shopping. My daughter has dance one day a week. While she was dancing, all the other moms would talk, but my face was always in my phone. I was uploading albums, or I was part of a multi-consultant sale.”
Amway stresses that the main difference between a legitimate MLM business model and a pyramid scheme is that a legitimate MLM is focused on selling products, not recruiting more salespeople. In a legitimate MLM, it should be possible to make money by simply selling products directly to customers. With that main criterion in mind, here are some other ways to identify product-based pyramid schemes:
Using this model, LuLaRoe sellers busted out of the traditional confines of heritage, Avon-style MLMs. One of the reasons Avon had so much success in the 1960s was that it was the easiest way for suburban Americans who were an hour away from the closest department store to sample and buy makeup. Convenience won out. Now Facebook can provide their contemporaries with that same easy purchase availability from the comfort of their couches.
Multi-level marketing (MLM) of netwerkmarketing is een bedrijfsmodel waar een piramide van zelfstandige verkopers inkomsten verwerft door directe verkoop van producten en door werven van nieuwe verkopers. MLM maakt gebruik van persoonlijke relaties tussen verkoper en klant. MLM wordt vaak bekritiseerd onder andere door vergelijking met een piramidespel. Het is, mits aan voorwaarden wordt voldaan, legaal in Nederland, België en de Verenigde Staten.
“Joining an MLM is appealing to women who find hope in their promises of a better life: freedom, economic independence, and an endless supply of cheery trinkets. Despite professing quick-income prospects though, it’s difficult for MLM consultants to earn more than pocket change. When glitzy recruitment videos yield to the reality of suburban cul-de-sacs, people selling for MLMs can be plunged into debt and psychological crisis.” (Quartz)
Second, we have an opioid addiction and overdose epidemic in this country. Numerous studies have demonstrated that when a state legalizes marijuana, the number of opioid prescriptions drops. That's good news for doctors looking for safer pain treatments, law enforcement agencies struggling to control the tide of illegal opioid use, and lawmakers looking for solutions to the opioid problem.
What makes a pyramid scheme a pyramid scheme isn’t its pyramid shape, however, but how its pyramidal structure works. If you apply for a job at Walmart, Walmart doesn’t require you to buy $50 worth of product from them before they’ll give you a job. And once you start working for them, they don’t require that you make $100 worth of purchases from them each month to keep your job. But an MLM does.
But many people can’t recruit enough folks and they end up spending a lot of their own money. As Laryea points out, “Recruits are often expected to purchase ‘starter kits’ or inventory to start selling products, which also earn the recruiters (and the recruiters’ recruiter) commission. Thus, multilevel marketing as a business strategy incentivizes participants to grow a sales network underneath them, also called a downline.”
The health benefits of marijuana are now getting a good deal of attention. Yet hemp―a close relative of marijuana―is actually a far richer source of CBD, the compound responsible for effectively treating dozens of disorders, and contains very little THC, the substance responsible for marijuana’s highs. Sounds like growing and using hemp is a win-win situation, right? Not quite, because the US government, which holds the patent for CBD specifically because of its healing abilities, has unfairly classified hemp as a Class 1 drug, thereby banning people in the United States from growing it commercially. If you find this confusing, you’re not alone. That’s why best-selling author Earl Mindell has written Healing with Hemp CBD Oil, a straightforward book that will first help you understand what’s going on with hemp oil in the United States, and then teach you how to use this valuable natural remedy to improve your health.
Thanks for the kind kudos, Shay. I’ve found a lot of network marketing “tool” programs offer a blog so I think a lot of people simple don’t know what to blog about… how to promote their content… or even how to target a specific audience. Tragic, but true. Fortunately, programs like MLSP teach all of that. It takes time, but it works if you work it.
I used a “cbd tincture 250mg”. After about 3 weeks I started passing blood and protein in urine. I stopped and it cleared up. A couple weeks later I decided to try again and within 3 days it happened again. Could this be due to the type of oil I used or might I have the same problem with any oil I try? It was helping my hip pain and crohns. Thanks!
If your wife needs to make money for your family, what then could she do instead? Work nights or weekends? Find a paid job that can be done from home (there are legitimate companies out there that hire stay-at-home moms as customer support reps, transcriptionists, etc., though there are also plenty of scams that advertise as such, so look with a skeptical eye)? Start a freelance side hustle?
My order has shipped and should be here on the 31st. I am so excited. I got an anoxic brain injury during an open heart surgery. Since then I have had an amazing amount of muscle and nerve pain. I ordered the 500mg bottle. I was told to start low and go higher if I need it. So excited to receive it. I am praying it works for my pain. I will let you know my progress. Thank You