Top 7 Reasons To Ban MLM’s

by Tellman Knudson

If you’re anything like most of us, then you’ve been tempted by the allure of the ever-present, overwhelmingly attractive, but often misleading promise of easy money from a MLM company…

Chances are good that a well-meaning friend or family member who was down on their luck financially got “sucked in” and didn’t know what was happening.

Either you’ve been a victim or you know someone who has…and that’s probably why India is moving to ban MLM’s entirely.

Will the US be next?

Here’s my question for you today:

“Should the US ban MLM’s?”

If you’re not sure, read the rest of this article and then make up your mind and respond in the comments to cast your vote.

#1 The Products Suck!

They say “this company has GREAT products” but when you try the “gel” or “skin care product” or the  “next big thing” you realize that you wouldn’t consume this product – even if it was free!!!…

You don’t want that crap. They are all just trying to sell stuff that you wouldn’t touch with a 10 foot pole. Now it’s your time to try to get your friends and family to eat it.

Good luck with that.

Yea, feed them another chemical infused energy drink that will probably give them cancer. They will love you for that won’t they?

But hey, It’s all about the compensation plan, right?

WRONG!

#2 Confusing “Comp Plans”

Another problem with MLM’s is the so called “Comp Plan.”

Nobody can ever understand how much money they have made (or how much money they are supposed to make) for their efforts! With all the crazy Pyramid Schemes out there – how can you keep it all straight?

Most MLM’s are just big Ponzie Schemes that end up leaving the folks at the bottom (that’s you) out of your hard-earned money, and a pile of “product” in your garage that you don’t want to use or eat yourself because it tastes like CRAP and doesn’t even work as advertised…

#3 Your Family Will HATE YOU!

MLM’s are notorious for turning average, everyday citizens into walking slime-balls. Or at least making people want to screen their calls.

The only way to “enroll” people is to get the closest people in your life to sign-up under you, for something you don’t even believe in yet!

If you EVER find an MLM that tells you to get friends and family in under you – RUN the opposite direction as fast as you can. Your friends will stop talking to you, and your family will stop inviting you over for the holidays! YUCK.

#4 You have to work 24-7!

MLM’s are terrible because they REQUIRE you to “Hand Hold” all the new people who come “into the business.”

MLM’s aren’t businesses. They are schemes that suck in unsuspecting people who are hard-wired to be EMPLOYEES.

The only way to succeed at ANY business is if you are an Entrepreneur, and most people are NOT entrepreneurs.

If your goal is to get a bunch of people who spent their whole life as an employee (even if they just got laid off) to become an Entrepreneur – THINK AGIAN!

#5 MLM’s don’t build YOUR business…

They build THEIR business!

You have to understand, when someone starts the next big MLM – they DON’T care about you.

They care about them and making them money.

Then they build the “Comp Plan” to make it seem like it will make you money, or confuse you into thinking that it will make you money.

#6 Only the people at the top make money.

The people at the top are AMAZING networkers.

They have rock-solid relationships with OTHER ENTREPRENUERS that know how to run serious businesses.

If you try to make any amount of money, and you aren’t already part of a super-savvy group of high-level entrepreneurs, you’ll be swimming up-stream until you join yet another MLM and the cycle will start all over again.

#7 The worst of them all – COLD CALLING!

After you’ve burned every bridge you can think of with friends and family it’s time to hit-the-phones and start making Cold Calls to “Hot Leads” that are skeptical people who don’t want another telemarketer (yes, you are now officially a telemarketer) calling them at dinner time with their family. You will get rejected time and time again, and you will hate your life!

Ok…so after reading my COMPLETELY UNBIASED article about MLM’s…what do you think?

Should MLM’s be allowed to continue to proliferate in this country or should Obama do something about it?

Cast your vote in the comments below.

SHABAMBO!
-Tellman

P.S. My only hesitation is that there is a terrific guy I know who makes a literal FORTUNE from a different kind of MLM than I’m talking about here, (and the poor dude used to live in a van). Do you think he should “go down with the sharks” ? – You’ll get a chance to chip in on that one in my next email…

“The Only Thing Worse Than An MLM”

That’s right…there’s only ONE thing worse than an MLM.

In fact, it makes MLM’s look like Girl Scouts… I’ll tell you what it is tomorrow.

In the meantime, go vote below and leave a comment with your thoughts!

If You're Unstoppable:

&

{ 58 comments… read them below or add one }

Martin

Dear Tellman,

Join the Laissez-Faire Club (lfb.org) yourself and learn why government regulation has done INFINiTELY more harm to society, freedom, self-respect, responsibility and wealth than the entire MLM industry has done or ever could do.

Regards,

Martin

Reply

Gene

Great article, right on all counts! Way back in the early 80’s I was looking for a way to supplement my very modest weekly paycheck. I looked at a few different systems, businesses opportunities, other PT jobs, etc, Many years before that in the early 1970’s one of my parents neighbors became a Shaklee representative and tried to sell everyone on the block, including my parents, on these rather expensive vitamins and things. I don’t think they ever made it to much and gave up after a little while. Anyway I eventually got involved in Amway. Young, full of ambition, and wide-eyed enough to think it might really be possible to peddle enough of their wares to make a 2nd paycheck, I bought the usual stater kit, I think it sent me back around 80.00 back then I barely had, then went to a few pep rallies that resembled the then-current rah-rah meetings of TV preachers. The long and short of it is my new Amway business in a box never made me a 2nd income, but instead ended up costing me a lot of wasted effort and time. I had a box of left over products left in the garage for years after I gave up in frustration. Trying to push the products wasn’t anywhere as simple as they told us it would be. I got the usual resistance from most prospects; we buy everything like that at Walmart, get better deals w coupons at the grocery store, My uncle sells Amway too and we get everything from him, etc. To say it was a frustrating experience was an understatement. As good as the products were, nobody can compete effectively w Walmart or anyone’s favorite uncle and stay in business for long. If you cut prices to make a sale and beat the competition, you make no money. Not much point working to break even or worse, lose money. I admire anyone that found a way to make good at MLM and/or telemarketing, or door-to-door sales. But I know it’s not for me and I’ll never bother w any of that again. I don’t know If I’d go as far as banning it. That’s a pretty draconian step. It is free enterprise after all. As long as the sales rep isn’t doing anything illegal or immoral to close, I am OK with allowing MLM to continue. The industry could use some new regulations that protect the consumer, just as Wall st and every other business needs to follow the rules. I do think consumers would do well to be informed about the reality of the kind of life they are facing when becoming involved w an MLM. If you are day dreaming about making easy money selling vitamin pills and super duper laundry soap and amazing non-stick cook ware, then I hate to burst your bubble. But most folks won’t buy from you. They’ll get in the car and go to the local shopping mall, or nowadays just go online and buy from their favorite website. I do both. I know some rare folks actually like selling and can make an income at it, but I strongly believe most getting into an MLM business will soon end up losing money and time. How many new sales people won’t end up calling it quits within a few months if the dreams of a good 2nd income don’t materialize? Most people aren’t cut out to be in that kind of sales field, I know I wasn’t. I do avoid buying anything from MLM reps and I screen my calls and have dodged telemarketers for a long time.

Reply

Adrian

7 Reasons Tellman , i can give you more if you like 🙂
I am refering to Melaleuca The Wellness company with my reasons
1; with Melaleuca people below you can do better than you
2; if you dont help others to improve themselves you do not get to grow either
3; Melaleuca is just switching stores with the profits coming back to their members (last year they paid 30% of their income to their members, over $300m)
4; the products are cleaner and greener no harmful chemicals that will effect you or the enviroment
5;by shopping direct from Melaleuca you cut out the middleman, and are in competition with the major manufacturers
6; Melaleuca has saved 67 million kilgroams of plastic in our landfills, 103 million litres of fuel for shipping and 15 million kilograms of harmful gas emissions
7 their products carry a 90 day 100% money back guarantee if not happy with them
8 their compensation plan is sturctured so that financial freedom can be gained by helping others
9 they have a 95% customer retention rate
etc etc
:}

Reply

Sylvain Theoret

Hello Tellman,
1.- Rather than staving to death, to wait for someone’s help or money to fall from the sky, you should try to sell stuff.
2.- When you have sold everything imaginable in the world, try to sell music, poetry, films etc…
3.- The world is full of idiots and person without talent. This should not prevent you to thrive and to get in business.
4.- If you can make millions of dollars selling stuff like toilet papers imagine all the others possibilities.
5.- The bigest and hardest part is to find peoples to get associated with, with energy and the willing to work. Most of them have no courage.
6.- In America, you can get in business very quickly, and start making money.
7.- Also, in rich countries like ours, you can find lots of peoples and lots of possibles customers.

Reply

Marion Lynn Connell

I never voted because as much as i don’t particularly like them, i was associated with one some time ago. I never made any money but the products were very good. That is the company’s own products were good. If they didn’t manufacture it themselves, it was the same as store bought.

Reply

Stephen Tuell

Banning MLMs is fighting fire with gasoline. I have been in several MLMs and always lost money. I worked hard, went to all the conventions, spent a lot of money. I picked and chose among many products and like the ones I bought, even though some of the products were, in my haughty opinion, worthless.

Even huge retails sell a lot of junk, too. We don’t need government banning products. That is a Pandora’s box.

Personally, I think MLM’s are very difficult businesses in which to make money. I will never join another. Others here have detailed many of the problems and some benefits. You can make a fortune AND keep your friends by working a carefully selected, non-MLM business.

Reply

Michael Lamb

What? Are you people NUTS? Can you not tell a fishing expedition when you see one?
Clever, Tellman. BTW: Big fan!!

MLM or Networking Marketing is a sales method that leverages other people’s efforts or a group effort and the people in the group are therein rewarded for those efforts.

I dabbled with a few companies before I “learned” how the process works.
Your success is tied to what you learn and how you apply what you learn.
That’s it.

The key is being a user or a fan of the products. With Internet marketing I earn more income from products and services I use, intimately know and enjoy.

I am in a networking company. I love the product. It’s a tool I use for my business and I suggest it to other business owners. When they use the product I get paid. When others also become distributors, I get paid from their activities, purchases and those of their customers. Quite frankly, it’s the best business model on the planet once you understand it.

Many, many many Internet marketers are in this program with me. It’s called
http://www.sendoutcards.com/mysecretincome

It’s the one company that has changed the way we do greeting cards. Unbelievable business tool for attracting clients and customers and achieving incredible customer retention. We did very well in 2012 and it will be our best income income stream (out of many) and our most profitable business building tool in 2013. Anyone interested in knowing more feel free to call me anytime. 480-982-0233 in Sunny Arizona. Killer company. Fast income. Great residual and bonuses. We’re grooming everyone on our team And company growth is speeding up all of our incomes. Wanna play?

Reply

Annemarie Berukoff

What balderdash, Tellman. MLM works when done right! Grassroots capitalism is the only free enterprise that offers hope in a troubled economy. Digital distribution and harnessing internet wealth is a fair and democratic right for every family. No manufactured products. 2 Steps Marketing Systems duplicate for sustainable residual profits. No complex comp plans. 3 Kindle ebooks are improving back to basics and public perception. Generic education matters. Search Berukoff at Amazon.

Reply

michael

I hold out hope for the mlm industry,,,, but for the most part it is a real money scheme. Where the products come in a distant second,,,,

Reply

Kay

If you want the government to step in & ban MLM’s then I believe the government should step in & ban internet marketing. I know I’m not the only person who has been ripped off by being mislead, or promised the world only to be to be told I’ll really only get “the world” in the upsell-or the upsell after that! At least in MLM you can actually purchase the product & TRY it before you get involved. I’ve had more problems with internet marketing than I have MLM’s

Reply

Chris

Amen to that Kay ….. your spot on there .

Reply

Gary

I had been a network marketer for at least 4 companies in the passed few years. I agree with you Tellman,most of the products suck badly. So I ended up earning nothing but debt and a bad reputation among my friends. However,I don’t think it’s a good solution to ban MLM,perhaps restricting the regulations is a much better way to go.

Reply

James

No, let MLM continue.

With MLM, ethical businesses can save money and pass the savings on to their customers in the form of higher-quality-per-dollar. Meanwhile, unethical businessmen will continue to form Ponzi schemes and traditional scams- I mean, businesses.

As a customer, two rules will keep you from being burned (much): buy only products you want to use, in quantities you can use and only try to sell products that you have personally verified are selling at or below their market value.

(Of course, they can always abscond, but so can your employer!)

And BTW, recognize that this “survey” is probably just a way to find out who’d be interested in hearing about MLM opportunities!)

Reply

Kyle

Banning MLM’s would be a little overboard.

You do make very clear points on facts about SOME MLM’s.

The important thing before anyone JOINs any MLM is that they really do their homework and understand as much as they can before joining….actually…Just listening to your heart/intuition on making any decision will lead you in the right direction.

MLM’s are good, they mean well, and the good ones (the van man one) are lead by real leaders who really care.

Whiners and Wussy’s need not apply.

Reply

Kerry

I know some people very well who make 500K+ a year in MLM’s

For those of you hating on MLM’s or any one making Ca$h online stop being a bitch and learn how to kick ass.

Reply

Robert Stafford (Toilet Paper Letter Guy)

Hi Tellman,
Bob ,the Toilet Paper Letter guy here. It didn’t take long to realize that you are
talking about Empower Network. The main reason David Wood started this company
is because he had been beaten up by traditional MLM. He did Amway for 3 years
and had all the experiences you describe.
Tellman, If you decide to jump on the Empower Bandwagon, you couldn’t find a better
place than my Team. I am on the Tony Rush Extreme Team. The fastest growing team
in the Company. Tony has earned nearly $600K since starting Mid Nov of last year.
He is attracting many leaders including John Lavinia, Top producer for Liberty League.
I joined your hypnotist program and am fired up and ready to go.

Reply

Teresa

MLM is an awesome business model. Keep the govt. out of it. They control way too much of our lives now. I can decide for myself what I want to buy and what I want to sell. Sure there are bad people in every business. I have had network marketers rip me off but does that mean they are all bad. No. Same in MLM. I have been in different ones because when one started working like the program said, the govt. stepped in and did something to mess it up. It was not the MLM company. Some MLMs are really great. Do your homework, know what you are getting into and who you are getting in with. Sometimes it is not the company it is the person that sponsors you. Make sure you like your sponsor and that they will be there for you. The MLM that I share now, people actually thank me for sharing it and they love it. I actually use the product almost daily. I have customers that use our products to help their main business grow. They are making money using our products without actually “getting in”. Now that is an awesome business.

Reply

Kay Fisher

I agree! Keep the government ot of it. When done right it is a great business model. There are great MLM’S-with great products-and vice versa. Just as any business-or anything else in this world for that matter. You just have to do your due diligence. I’m in one right now that I have yet to promote, but have been using the product-with absolutely amazing results! It’s a health product that is safe for humans & animals-cured my cat’s urinary problems,something that many trips to the vet + surgery couldn’t correct. Many health care professionals are getting involved-which I believe shows the real value of the MLM model. It removes the temptation to keep back a tremendous product-that can solve some real world issues-in order to survive & thrive financially. And why should those that purchase these products not share in the profits? The real problem is greed, selfishness, dishonesty, etc.

Reply

Vera

It is amazing that someone like you would write an article like this.
And I am not from the US or India, but it applies to us all.
Let’s protect people from facing disappointments in their lives? What an idea!
Then by all means let’s ban business, commerce, and conventional jobs as well. I KNOW anyone have at least in their lives met a person or has been themselves hurt by them: lost their jobs; did not get the job they wanted but settled for a bad one; had been underpaid; were stepped over for promotion; lost their business…
Is commerse wrong? I am sure there are people who have been “burned” before!
Is telemerketing wrong? I am sure all of us experienced these irritating calls from companies in the evening…
So let’s ban them all!!!!
Come ooon….
It isn’t MLM that is the problem in it’s bad reputation. It is not (in most cases) the products. It is when people only want, as you said it, “quick and easy” money, and promise others the same. It is when people use a mechanism wrongly, that it turns into a nasty experience.
Instead – let’s grow, as a society, in all the world. Let’s be better, deal fairly, whatever our business model. Let’s say the truth to people, and make no empty promises.
My five cents…

Reply

Sally Sanders

“Dan
Sure, I’m game… we might as well regulate everything at this point in the game. We’ve reached the point where doing something-anything-legal isn’t possible anyway. We’ve allowed them to create such overwhelming regulation in every area of our lives that anyone can be picked out at random and have their lives turned upside down at will. There is a law for everything.

I wonder who meets with more financial success from a percentage standpoint: people who endeavor to find a better path for themselves (perhaps with an MLM, for example), or people who dutifully submit to long-term brainwashing tactics from the governments “public schools”? Should we create even more numerous and more heinous regulations to control people, squash their freedom, steal their dreams, criminalize their every thought and action?…”

GOOD POINT… No Ban and for Sure, NO Government involvement !!!
Sally

Reply

Rick

Yes, ban MLM. I’ve been subjected to the calls and even attempted one myself lost my money was not helped like they said.

Reply

Cahira

You are way out in left field with this one. I belong to 5 different MLM companies and I can tell you there is money to be made with with them. I am connected with companies that have saved lives. Humans and pets. One company even has product that has kept people and pets away from Chemo and they are alive today because of it. Yes, there are rip offs. ANY company that claims fast and easy money should be checked out from top to bottom. In a legit mlm company there is work involved. Just like all professions, there are the few that make a bad name for the good. It is a responsible human’s job to do their homework and make sure they are not getting into a company that is a rip off. Equally, a lot of people are looking to get a lot of money for doing nothing. That doesn’t work either. That is commonly known as lazy. If you want the money, even in a good company, you still actually have to show up and work for it.

P. S. Even with 5 companies, I don’t work 24/7 and I make money in all 5.

Reply

Chris

Cahira,
Can you please share with me the company that keeps folks away from chemo as I have a dear friend who just starting an is having a very hard time. Thanks.

Reply

Karl

Do you care to share what 5 companies you are involved in & do they compliment one another.

Reply

Eric Dahl

Oh comon guys!
get with it !
why for god sakes do you want BIG GOVT telling you what you can and cant do!
especially when it centers around entrepreneurial business!!!
They tell you you cant do this te next thing you know they will start to knock down some other form of self expression.
I stand for self responsibility. people realizing what is good and not good for them and taking a stand for themselves.
This society already has too many people putting their trust in other peoples hands when it comes to their basic understanding …especially when it comes to doctors and pharmaceutical cos. and Insurance companies . which have a grip on you.
Overcome everything as I know it should stand to educate people more on everything and not make blanketed accusations against things such as MLM which has been very good for many people. Encouraging others to get the govt to come in and tell you what to do because you can take care of yourself is disastrous to everyone’s freedom.
WAKE UP!!!

Reply

Doug

Good list of bad things to look out for but this blog title is TOTALLY wrong. It should read 7 ways to tell if you are in the wrong MLM. If any of these are true you need to find a better MLM!!!

Reply

Vera

Absolutely! Right on!
No way to ban MLM! What a silly idea!
Don’t ban anything at all but what is illegal!

Reply

Karen

MLM live on!
All forms of sales are completed by some means of multi level marketing. So be it. It will not go away, nor will ethics always be a priority. Hype rules for many. i.e.: Non Fat Cheese, Really?
My dad always said – “If I’m going to die of something, I will choose to die of the real thing!”
So there ya go – Choice.
many blessings & Happy New Year to All!

Reply

Ken

To The Person that used this thread to call The President of The United States a Moron,
The “exit door” for the U.S. Boarder is always open!!
As for the question at hand,
The U.S. Government should not ban MLMs
People can and do decide if its something they should attempt!

Reply

Rosanna Tufts

Thanks for telling the unvarnished truth about MLMs. Yes, I too have been there, done that. I did a radio show about this recently, that was very successful,
got a lot of listeners. You can hear it here: http://www.blogtalkradio.com/perfectworldnetwork/2012/11/21/the-tufts-get-going
In the show, you’ll hear one of my interviewees say he would promote a product thru the MLM model only as a last resort, and if he did, what the customer service would look like.

Reply

Vincent

Ok the government is all ready trying to ban raw milk and selling lemon aide on the road side and putting there hands in every thing that you can imagine. Now you think that the government should ban MLM’s and take away more of our choices that is our god giving rights to do what ever we choose. There are good and bad in every thing it is our responsibility to check out our own choices to make sure we are making a wise decision.
Just like any other business some people do good and some people fail.

Reply

ross

I don’t think we should ban mlm. Eventhough, I’ve been a part of a few and really haven’t been successful at it. I wish someone with business knowhow would research these businesses and find out which ones are legit. Maybe even tell us what the unique selling propisition is. That would help the rest of us who don’t have time or knowhow to make some type of informed desicion.

Reply

Sheyenne

Hey Ross – so sorry to hear you have had difficulty. There are 3 things people should always investigate before they join a program:
1. The Product & Company
2. How you get paid
3. The team you are thinking about joining
More people have become millionaires in MLM than in any other industry – period. Some of the products have literally saved lives and kept families from falling apart. There are good and bad pay plans. There are good and bad companies. And – there is a “culture” in every team out there. If you are not in alignment with the team, you will have a hard time having success.
An important note – you as an individual can create your OWN unique selling proposition. Regardless of the product or company. When you determine your own why for building a business, you can create your own USP.
Don’t give up! The rewards are worth it!

Reply

richard johnson ii

Sheyenne, Those are three valid points for MLM success.A number four point of How hard are you willing to work be added. The demons and doubts in a person’s mind often slay their dream before they see a big benefit financially with MLM. Once they are overcome success can be found. My company is great, but my mind had to be rewired before I succeeded. This is the biggest problem in MLM : motivation and persistence.
Good luck to all!

Reply

Rigger

I don’t care for the idea of the MLM.I know people that have gotten wealthy from it because they were within the first few tiers.but have known others that have worked their butts off and all they got was a smaller butt.And shelves full of product that would not sell.Sure,it’s a free country,and everybodys alowed to make their money however they can.But leave me out of the scams that are MLM.Good luck to they that can do.But not in my doorway.

Reply

Javier Elenes

I see absolutely no reason why the goverment should ban mlm.
It’s just a business model, people should decide if it’s a right fit for them, not the goverment.

Why give one more reason for the gov to mess where it doesn’t have to.

Let the people decide where and how do business.

I don’t see a problem with MLM.

The problem is with crappy products, fraudulent compensation plans and annoying/caveman-style recruiting tactics.

Reply

Vickie

I don’t believe that MLM should be banned due to there being many MLM companies with excellent products & there are millions of people who depend on the income they make with these companies. If it is banned, it’s a very sad day for this country, which is already in a mess. The US government can’t even properly monitor their own agencies. What makes anyone think they can make a responsible decision about MLM? Jim Rohn, Donald Trump & Robert Kyosaki all think that MLM is the ultimate business model. You just have to be diligent in researching what the company is about before joining. For the most part, MLM companies have the highest quality products on the market. It sounds like some of you didn’t do your investigating before jumping in. Just because you made poor decisions doesn’t mean that a whole industry should be done away with. Take responsibility for your own actions & results!

Reply

Keith

MLM way better than Internet marketers they sell u something then won’t do any follow up or leave a good contact nber

Reply

Sylvain Theoret

Hi Tellman,
We should not try impeached any entrepreneur in America, to try to get in business. Like any business, like the Dow-Jones, you must have a couple of milllions of dollar to invest, to ever thinking doing any money in a near future. The best thing to do with MLM’s products, is to buy a lot of products then you must open a store facing a well crowed boulevard with a ton of potential customers and buyers.

Reply

Bob

There are all kinds of businesses. Some people are successful and others are not in all of them. In the US we are fortunate that we have the right to choose whatever business we want to be in and how we go about doing our business. There are good MLM companies and there are not so good. There are good products and there are not so good. As in any business or investment, one must do his due diligence first, then decide whether and how to participate. Similarly, when people invest in stocks, options, etc, some win and some loose. Should we ban those investments also because some people loose? We have the freedom to choose the business we want to be in and how we invest our money. In either case, the government’s role should simply be to regulate unscrupulous business practices. With the freedom to choose comes the understanding that we are also responsible whether we win or loose, because we choose to participate.

Reply

Charles L Evans

I do not think that the government should get involved. I have seen the USDA fine people and seize their farms for giving food from their gardens to needy people. This is just more of the same.
My experience with MLM has been positive, even though, I have not made much money. Most of the products that I have used are out standing, maybe too high priced but really great products..Notably Amway and Advocare. Most of the problem with MLM plans is from those distributors that are not honest with their downline. Rule number 1 in MLM Don’t trust your upline, check it out for yourself.

Don’t expect the government to do for you what any business man should do for him self.Check it out, do your own research.

Reply

Brian

No don’t ban MLM or Internet Marketers, but in my opinion you should avoid both like the plague. Some people have to learn the hard way, and I’m one of those, I’m still trying to pay off all the debt I occurred from these so called get rich methods being sold by a legion of online marketers. BEWARE DON’T GO THERE!!!

Reply

Andreas

Excellent blog post Tellman! You said it right! Its time to share it with friends and family that pinched me once to join different MLM businesses.. em I mean schemes.

Now about banning it I am not sure. I suppose though I would mostly vote to ban it rather than not but if you see it with other eye its just another way to makes sales and make people’s money by offering a product. Lets keep it for everyone decide for himself if he wants to get involved or not. USA is a free country and each person can make his own decisions.

Andreas,
PS. Does sometimes “internet marketing” seems like a MLM schemes?!

Reply

jane

Please remember there are exceptions to the rule, also sometimes many people who would never be able to earn money outside can earn money with MLM.

I cannot disagree with all the comments, but nothing is black and white, I happen to use a superb product, and it does deliver, I watched it for 6 months before trying it and can say am so glad I did and yes it is MLM, so don’t throw the baby out with the bath water and spoil it for a decent company with a DAM GOOD PRODUCT and a decent payplan, with no compulsory autoship and a very small outlay per month to qualify, so this person who wrote this does not know all the MLM COMPANIES OUT THERE.

and guess what I am not even going to name the great company so that I don’t get accussed of trying to promote………..HAPPY NEW YEAR AND LONG LIVE MLM:)

Reply

David

I have tried every damn MLM in the 90s, I tell you most of it was crap. I was paying someone to promote their product. Anyway MLM would get banned by the Feds, they make harder for affiliate marketing. In fact just about any business. Giving that we have this moron in the White House its going to be hard on all businesses.

Reply

Mike

The companies that sell crap will go out of business on their own, just like any other type of business.

Reply

clifford J

Get off your high horse

I happened to suffer from dandruff and not one product on a commercial store could provide any solution, not one product of all the stinking products.

Herbalife came to my rescue with herbal Aloe now I can wash my hair daily thanks to those researches who brought the product to the public. 17 years on still the best product.

Since i’m enjoying the benefit it cannot be a ponsie or pryamid scheme.

The shakes are for all fat or thin or sick or poor wonderful work is done in my neck of the woods in helping with feeding schemes for those to poor.

Add fruit or an egg to the shake what a meal!

And I don’t belong to this MLM call Herbalife

I certainly could not do this type of work there are folks out their who thrive on it so why get in their way.

They did not beat me into submission

Reply

Kurt

Tellman, you stuck your foot in it this time. You are 100% wrong. I am in several MLMs and value the products very highly. One has restored my health, another has helped me fight legal battles at no cost, even another gets me utilities at a discount. What is there to not like?

Reply

Norbert Jocham

If people are not smart enough to figure out they are being screwed than no govermnet interference will save them. Once you get the goverment involved you find that more regulations follow and someone is suddenly looking at your industry because someone complained. Let the market control itself and allow people to clean up the indusries.

Reply

Tarek

What? You got to be kidding…..
Do you really think the MLM industry would allow that?

I don’t think that it is all that bad. We just need clearer regulations about products as compared to the marketplace.

Like everything else in the world and all other products, there are good ones and there are bad ones. There are ones with value and others not so much. The marketplace will weed them out. The only thing government should do is provide certification for products as compared to the stuff we normally get. A rating of some sort. Maybe a five point scale, 3 being the midpoint, which is equivalent to what is on the market sold through retail. 5 is much better, 1 is much worse. Then let the consumer decide.

This will immediately bring MLM companies into the 3 and above range and we can use that.

As for compensation schemes, if you cannot understand them, stay away. And again this is a vote with the pocketbook. The only regulation needed is if they are true ponzi schemes. Again, submit the compensation for review and get OK.

But outright banning of MLM is not a good idea.

Reply

Sally Sanders

You start banning one thing and it opens the door to future bans, NOT good…

When there’s a problem with a program, work to get that program changed or stopped, not banned…

We must take responsibility for our own actions and if a company or program lies, they must take responsibility for their actions… This has nothing to do with “banning”…

Each program/company is responsible for the actions of themselves, not other programs/companies…

Absolutely NO Banning, don’t know where this banning idea came from, but it is not good for us, as a Free Country, each problem must be dealt with on an individual basis…

For our Freedoms sake, do not ban a ‘complete process or idea’, DEAL with that specific program or company’s problem…

As long as we have Our United States Constitution, we have the freedom to do, go, have, say, become whatever we want As Long As It Does NOT INFRINGE Upon the Rights of Others… {{…to encroach upon in a way that violates law or the rights of another…}}

Thank you for your time,
Sally

Reply

Rosemary Loven

No, leave the Government out of it. Just get this information out, and MLM’s will die the death of a thousand cuts, as they should.

Reply

Omar

Tellman,

There is no reason to put down the mlm profession… if you want to become an affiliate of the terrific guy who used to live in a van…

Do it.

He is a great guy. I’ve bought courses from him and I will keep buying because he’s a real badass marketer and person.

However,

I believe you are smart enough to presell in a professional way without calling it a “COMPLETELY UNBIASED” article about MLM’s.

In MLM some people make money, some don’t. Just like internet marketing or any other business.

Omar

PS: I don’t think you have used or tried any MLM products. Your perception will be different.

Reply

Dan

Sure, I’m game… we might as well regulate everything at this point in the game. We’ve reached the point where doing something-anything-legal isn’t possible anyway. We’ve allowed them to create such overwhelming regulation in every area of our lives that anyone can be picked out at random and have their lives turned upside down at will. There is a law for everything.

I wonder who meets with more financial success from a percentage standpoint: people who endeavor to find a better path for themselves (perhaps with an MLM, for example), or people who dutifully submit to long-term brainwashing tactics from the governments “public schools”? Should we create even more numerous and more heinous regulations to control people, squash their freedom, steal their dreams, criminalize their every thought and action?

Why the heck not, it totally seems the cool thing to do anymore. Oh, and while we’re at it… let’s create another law to protect people from themselves… let’s ban name brand shoes. People could get perfectly good shoes for cheaper if the law didn’t allow them to make a non-favorable decision to buy expensive shoes they don’t need. We have to stop allowing the idiotic populace to make wrong decisions for themselves; it simply has to stop. Perhaps it would be best if we just started imprisoning everyone from birth so we can stop them from screwing up and they can have a better life…

Reply

Vickie

Dan, as I’m sure you are well aware, this is all happening right now. People have allowed and/or demanded that the government take care of things for them and all with no followup. Someday soon, the sheep will finally wake up and see that their shepherd has lead them astray. It’s too late then.

Reply

Mark

MLM’s need to live on. Do not even consider a ban.

Reply

Don

I say no. It’s up up to people to make their own decisions and the last thing we need is another excuse to let the gov do the thinking for us.

MLM and IM like to pretend they’re different. They’re not. A product is a product. A funnel is a funnel. A sale is a sale. The bottom line of both models is at the end of the day a sale is made. Just like when you get a hot dog and slurpee at 7eleven.

Now, chasing friends and family is stupid. So many companies are in the dark ages there. And if a product sucks, you shouldn’t be selling it. I’m in a few companies and I’m in because I like the products and would buy them even if their was no comp plan.

I know where you’re going with this so I won’t give it away, but it is awesome:)

Reply

Eric

So Right! Mlm has no future!

Reply

Leave a Comment

Previous post:

Next post: