Why Network Marketing is a Bad Thing.

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What’s the harm of network marketing/ distance selling/ multilevel marketing? It’s just normal, everyday people making a bit of spare cash from selling things harmlessly to friends and online, right?

MLM creates victims

Victim 1- friends and family of the rep

You should see some of the heartbreaking stories I hear from people about their worries for their loved ones. It has ruined relationships. Not only can it dramatically ruin close family relationships, it can make working relationships and friendships awkward when someone tries to involve you in their scheme.

Here’s a selection of messages from Bot Watch’s Facebook inbox.

 

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Victim 2- customers

The people who buy the products are most likely only buying out of pity for their friend or relative. They might be trying to support their friend but do not actually want the product. Have you seen the inflated prices? They have to be high in order to pay all the people up the pyramid.

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This is water available to purchase from Forever Living. 12 bottles for £14.76.

Here is exactly the same water from the same source, not from Forever Living.

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24 bottles for £12.72.

Forever Living sell at £1.23 a bottle, 53p from another company.

 

Victim 3- legitimate homeworkers/ small businesses

How many real small business people/ home workers and life coaches have been met with scepticism or an eye roll when they reveal what they do? People who have spent time and money and skills building up a real business are not taken seriously because MLM have sullied the reputation of genuine businesses.

Some reps describe themselves as life coaches, which must sting genuine life coaches who have had training and built up a reputation, helping people to make the best of their lives and overcome obstacles they are experiencing. Reps come along and call themselves coaches, with the express aim of recruiting people, coaching them to recruit people to coach them to recruit people to coach them to recruit….You get the idea.

 

Victim 4- The rep’s finances

It has been well established that it is impossible to earn a good wage in MLM, unless you are high up with the right connections. The people that earn money are reliant on having a large team beneath them, most of whom will lose money, before they feel a failure and slink off feeling worthless.

There have been many, many people coming forward with stories about losing money. Have a read of Elle Beau and her story of Younique. People hide their losses to themselves and family. Most do not even realise they are losing money because they do not keep a proper track of their expenses.

Victim 5- Women

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Women are targeted for this industry, often in a patronising way, using their vulnerabilities and patronising them along the way. What is this, the 1950’s? Have a look at Timeless Vie for some of their work on feminism and MLMs. This article is a particular eye opener.

Here is one example from Bot Watch’s inbox of vulnerable women being specifically targeted.

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Victim 6- free thought

It is becoming increasingly evident that MLMs are cults. People are subjected to techniques that condition people into thinking and speaking in a certain way. They are taught to ignore their inner questioning thoughts and to blindly do as they are told. They are conditioned to think all fault lies with them and anything good is down to the MLM. They speak of their team members as family and are encouraged to reject friends and family that raise concerns. This post goes into more detail about it.

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 Victim 7- People with health conditions

For some reason, many MLMs tout products with amazing properties that can cure any illness. People target sufferers with conditions and tell them their products can help. This is not only deceptive and fraudulent, but illegal and dangerous as well.

Truth In Advertising have looked at the bogus health claims made by MLMs and they came up with quite a list.

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DoTERRA got in trouble for saying their oils could cure Ebola and got in trouble with the FDA about it.

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Below is a common type of social media post. What are they trying to do? Tell you that any condition you have can be cured by their oils/ juices/ tablets/ coffee? Yes, that is exactly what they are doing. I hope that they are just deluded and really believe in their products. Because otherwise, they are deliberately getting people to spend over the odds on products that will have no effect on anyone’s health. At least it won’t improve any conditions.

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What to do about it

If you are an organiser of an event please consider banning MLMs from attending. People are becoming wise to them now and are are generally displeased when they see these stalls. People who do not know about them could be vulnerable to being recruited. This is especially bad when the event is a jobs fair, targeting a particular profession or aimed at people with health conditions or new parents. You could be enabling these companies to cause many problems for the people you are trying to serve.

If you see adverts for events that include MLMs please speak up about it. Read this article on what you can do to help.

If you have a friend or relative in an MLM and you want to help them, look here for inspiration.

If you are in an MLM yourself you might want to read ‘How to leave an MLM’ if you are at that point. If you are not sure what to do and are having a bit of a ‘moment’ and tying to work out what is going on, read this article on ‘having doubts‘. It might help clarify a few things.

 

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6 comments

  1. My wife and thought we could make it in Amway. We structured our whole life around it. And bet the house… We were CORE in Wwdb, which meant at least $400+ /MO in Ditto ordering to get our 150 to 200 Pv thats a “standard” for a couple. Another $111. 90 for our voicemail, Wwdb membership, and audio training library. This doesn’t count gas for commutes to meetings 2,sometimes 4 hours away, major functions, which was another 4 times a year, three at a substantial distance. We probably spent 6k-8k per year on the business, and did so for 7 years. Our last year in, we came close to breaking even at about 2500 Pv. The 40 something people on our team all lost money. All of them. We’d have my student loan paid off, be completely debt free, but instead, essentially lost somewhere between 36k-50k.

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