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There was a discussion about MLM somewhere in the old INVESTING notes file. If
you really want to know what people in this Notes file think of it, you can go
read that file. But, here are some of my own thoughts...
> inturn introduce new members and so on and so on. "Little work invovled
> only spare time you would have spent watching television".
This statement is totally UNTRUE!!! There is alot of work involved in MLM,
selling your products and recruit new members. There is as much work involved
in keeping your "active down lines". I am sure we've all heard the saying
"there is no free lunch". And, guess what? It is true! Nobody is going to hand
you a check without having you to work for it. If people getting involved
thinking they can just meet a couple of friends and drink a few beers, the
checks will just start rolling in. They and in for a BIG disappointment.
> The introduction claims that there is no limit on what you can earn
> "$30,000 within 2 to 5 years". I'm not so convinced.
While I can not say this is an untrue statement, but they fail to tell you how
much work you have to put in to get there. If every "couch potato" can make
$30K easily, then, alot of people will be in it and DEC will not have to spend
billions to reduce headcounts. (Please, I am NOT implying that everyone
working for DEC is a "couch potato".)
> The products sold ("marketed") are distributed by AMWAY who apparently
> thought the scheme up. As it first started in the States before it
> spread across the globe, does anybody know of any Network Millionaires.
> Apart from those who make the tapes, books and general paraphernalia.
AMWAY is the king of MLM. Do I know someone who became millionaires in MLM?
Yes, I do. But, I can think of ALOT more people who became MULTI-millionaires
in OTHER form of businesses.
So, the bottom line is this. MLM is NOT a get rich quick scheme and you
DEFINITELY have to work hard for it. More importantly, it takes a special kind
of people (not the "good kind" or the "bad kind", just the "special kind") to
make it in MLM. It is not for everyone. If you are interested in it, give it a
try. After awhile, you'll find out whether you are made for it or not. If this
is not your cup of tea, just get out of it. But, of course, this may be at a
cost to you. Hey, that's just the cost of doing business.
Mike
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| I have always believed that because a pyramid scheme is only good for the
few people at the top and most folks don't have the ability or information
to tell the schemes from the legitimate businesses, this is a very risky
business to enter. Amway has had many problems trying to prove it is not
a pyramid. (This is not a judgement of Amway, just a statement of fact.)
So if you do decide to enter this business, you need to really look at two
things. First, do you get paid more for recruiting or for selling product?
Second do you have to sell a certain amount per month to maintain your
status as an authorized agent? If the answer to either is yes, then the
chances of this being a bad opportunity start to grow rapidly.
And as others have said, there is no free lunch!
Lee G.
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I know 2 people that earn above 30K working with MLM. They have been
doing it for quite some time. As stated there are many pitfalls to
watch out for. The best thing to do is to study up on MLM from library
books and magazine articles. Then contact people from several companies
and ask about their program; You can find Mary Kay, Fuller Brush,
Tupperware... people in the phone book. Ask about the negative aspects of
the business. Ask to see their earnings sheets. Look to see if their
money comes from product sales or percentages of recruits.
The great thing about business is you *can* make money if you work
hard. It is not for everybody. I have a single friend who has been
in a MLM for 21 years. He loves the lifestyle and the freedom to work
when and where he wants. He does admit that he might not be able to
support a wife and kids that way.
Anyone is welcome to contact me for book titles/magazine articles
on the subject.
Guy
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| For 32+ years, Amway has provided people with a sound, proven
opportunity to earn supplemental income with little or no financial
risk. The return is commensurate with the commitment. The benefit of
long term commitment can be a substantial, ongoing income beyond the
levels than most businesses available to "the man in the street".
The Amway formula is based on quality, in-house manufactured, repeat
business products with every day appeal, supplemented by a very
successful catalog of other, brand-name products. Amway's "bricks &
mortar" commitment is substantial, progressive, and exceeds that of
imitators which come and go with regularity. Market penetration of the
products offered through Amway leaves room for significant expansion -
hard work is the answer here.
No income is made from recruiting in Amway. As for the pyramid
question, the US FTC lost a case against Amway in the late '70s or
early '80s. The judgement found that Amway was NOT a pyramid
organisation and that it had built a business of substance which
serviced retail customers with products manufactured in its own plants.
Geoff W.
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