Have You Done ML Marketing?

[RandyWayne]

Originally Posted by Praxeas

MLMs are not ponzi or pyramid schemes.

The way they are marketed, they sure are.

Only recently have I actually seen commercials for Amway where they were actually trying to SELL the products. Every rep I ever ran into only tried to sell me into buying in -with promises of wealth and a story or two about someone else in the same town who only works 4 hours a week yet is on track to making over a quarter of a million this year.

[Praxeas]

Originally Posted by RandyWayne

Most have weekly motivational speakers which serve no purpose other then to keep the troops in line.

The speakers go on for an hour or more using catch phrases and words guaranteed to make the people stand up and applaud, without having really anything to do with the product(s) in question.

Im sure they got pre set people in the audience to cheer too.

I went to a stockmarket seminar. What they had to say was interesting. Then the bombshell dropped. For a set of DVDs you had to pay like 5k...

They promised you continuing "mentor" by some guy that is supposed to be an expert, but I found out you had to pay for that too.

It was the same sort of sale...guy pitching, doing his little act. The funny thing was when we were not cheering loud enough he acted like a Pentecostal preacher trying to get us "into" it.

[RandyWayne]

Originally Posted by Praxeas

Im sure they got pre set people in the audience to cheer too.

I went to a stockmarket seminar. What they had to say was interesting. Then the bombshell dropped. For a set of DVDs you had to pay like 5k...

They promised you continuing "mentor" by some guy that is supposed to be an expert, but I found out you had to pay for that too.

It was the same sort of sale...guy pitching, doing his little act. The funny thing was when we were not cheering loud enough he acted like a Pentecostal preacher trying to get us "into" it.

When I graduated with my first degree and was sending out resumes, I sent one to a company looking for a computer guy. They called me back and set me up with for a group interview. It turned out about 30 others showed up for this "interview" and we got to listen to a motivational speaker go on for 45 minutes. The company was Primerica (MLM insurance). And no, they weren't really looking for a "computer guy". This was one of my first big turnoffs to MLM. The second was a year later was a lady decided to go out on a date with me for the sole purpose of trying to sell me an Amway distributorship. And here I thought she liked me for ME!

[Praxeas]

Originally Posted by RandyWayne

The way they are marketed, they sure are.

Only recently have I actually seen commercials for Amway where they were actually trying to SELL the products. Every rep I ever ran into only tried to sell me into buying in -with promises of wealth and a story or two about someone else in the same town who only works 4 hours a week yet is on track to making over a quarter of a million this year.

MLMs are NOT pyramid schemes. They are not schemes. They are perfectly legal

MLMs are legitemate businesses...yeah I know that sounds odd, but they are. They involve real products and selling them. All those home parties are a lot like MLMs too...Ive seen very successful home parties selling security products and even sex toys :-).

A Pyramid scheme usually involves no products. Are illegal
http://en.wikipedia.org/wiki/Pyramid_scheme

A successful pyramid scheme combines a fake yet seemingly credible business with a simple-to-understand yet sophisticated-sounding money-making formula which is used for profit. The essential idea is that the mark, Mr. X, makes only one payment. To start earning, Mr. X has to recruit others like him who will also make one payment each. Mr. X gets paid out of receipts from those new recruits. They then go on to recruit others. As each new recruit makes a payment, Mr. X gets a cut. He is thus promised exponential benefits as the "business" expands.
Such "businesses" seldom involve sales of real products or services to which a monetary value might be easily attached. However, sometimes the "payment" itself may be a non-cash valuable. To enhance credibility, most such scams are well equipped with fake referrals, testimonials, and information. The flaw is that there is no end benefit. The money simply travels up the chain. Only the originator (sometimes called the "pharaoh") and a very few at the top levels of the pyramid make significant amounts of money. The amounts dwindle steeply down the pyramid slopes. Individuals at the bottom of the pyramid (those who subscribed to the plan, but were not able to recruit any followers themselves) end up with a deficit.
Some network or multi-level marketing businesses, which sell real products and rely on the price differentials between the manufacturer's dispatch ramp and the retail counter, may verge on the borderline between "smart" and "scam". However, legitimate network or multi-level marketing businesses can be distinguished from illegal pyramids by their compliance with these three criteria:

1. Substantial sales of products or services to end users
2. Commissions paid only on product usage, not on new enrollments
3. Company buys back the inventory of terminating participants

[Praxeas]

Originally Posted by RandyWayne

When I graduated with my first degree and was sending out resumes, I sent one to a company looking for a computer guy. They called me back and set me up with for a group interview. It turned out about 30 others showed up for this "interview" and we got to listen to a motivational speaker go on for 45 minutes. The company was Primerica (MLM insurance). This was one of my first big turnoffs to MLM. The second was a year later was a lady decided to go out on a date with me for the sole purpose of trying to sell me an Amway distributorship.

I've heard of them too. Had a friend that was involved with them.

BTW the door to door vaccuum cleaners are sort of the same

[RandyWayne]

I understand fully the legal difference between the two -ML and pyramid, but even though a LEGAL MLM company may sell a real product, the way they are sold is really no different in that mathematically it is almost impossible for later recruits in any given city to make any real money, yet they are promised such.
Yes, a pyramid scheme usually involves NO product or service (or could be safely be said to NEVER provide a real product or service), but the charts and funny math seem (to me) to be so close as to be indistinguishable.

Here is a little info about Primerica: http://www.pinktruth.com/index.php?o...617&Itemid=123 Note the very last short paragraph on the page!

[notofworks]

Originally Posted by RandyWayne

The way they are marketed, they sure are.

Only recently have I actually seen commercials for Amway where they were actually trying to SELL the products. Every rep I ever ran into only tried to sell me into buying in -with promises of wealth and a story or two about someone else in the same town who only works 4 hours a week yet is on track to making over a quarter of a million this year.

Absolutely. No matter how you spin it, no matter how it may pass the "legal test", it's a scheme! And you pointed out the key of it all....it's presented as a marketing plan, not because of the value of the products.

The current big thing in my neck of the woods, Mona Vie, is presented as the cure-all for everything including your transmission that's slipping. "Here, try this free bottle that will cost $40 from here on out."

[RandyWayne]

Originally Posted by notofworks

Absolutely. No matter how you spin it, no matter how it may pass the "legal test", it's a scheme! And you pointed out the key of it all....it's presented as a marketing plan, not because of the value of the products.

The current big thing in my neck of the woods, Mona Vie, is presented as the cure-all for everything including your transmission that's slipping. "Here, try this free bottle that will cost $40 from here on out."

I was born in the wagon of a travelling show
My momma used to dance for the money they'd throw
Poppa would do whatever he could
Preach a little gospel
Sell a couple bottles of doctor good

[coadie]

Originally Posted by RandyWayne

Most have weekly motivational speakers which serve no purpose other then to keep the troops in line.

The speakers go on for an hour or more using catch phrases and words guaranteed to make the people stand up and applaud, without having really anything to do with the product(s) in question.

Actually the charge for those meetings and make money on them They are not free. They also charge for promo material.

[coadie]

My pastor tells the flock that we are not a source of leads. If your leads don't pan out we even lose fellowship

He is strong against it.