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Multi-level Marketing - 01/05/2009
Folks, I have some business rings that this especially applies to, and you may as well.

A subject I have had to deal with in my rings is sites that promote some kind of multi-level marketing. I want to warn everyone about why this is inherently a scam. When I delete a site, I just tell people that the business model is inherently flawed. You can't make money unless you take advantage of your downline, who will lose their shirts.

Multi-level marketing means recruiting people for a downline. You get a percent of profits from their sales. It doesn't matter if they only allow one level of downline. The math doesn't work. It has been shown that people on the bottom of the downline make about $1.50 an hour. This figure was derived from Amway, one of the most "respected" companies. I have a family member who got badly burned by several of these companies, one of which has since been put out of business by the government. And it hurt our relationship; we didn't speak to each other for about a year, his choice. You're not supposed to try to recruit your mother, and he did. All this is common. Amway and other such companies have a lot of money to lobby, and they do. That's the only reason this business model is still legal. They'll tell you that as long as the emphasis is on selling products, they're legal. Don't believe it. You will make about $1.50 an hour unless you recruit. The problem is market saturation. It's like putting a McDonald's on all four corners of every intersection in a city and expecting them all to make money. Amway itself is on the skids. They got caught with their motivational meetings (where they use cult mind control; I personally witnessed it) and their turning to expensive motivational tapes and seminars. They then changed their name to Quixtar to try to avoid all the bad publicity. There's a book online written by a man who lost everything with them.

This is why I won't keep a site that has it. I think everyone in the WebRing system knows whether they are involved in MLM or not. They may not TELL you about it, but when you find cookie-cutter sites with the same information, often several in the same ring, you know what you're on to. Some of these even run a lot of webrings. Thoughts?



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