business insider Archive

  • I have good friends in colleges and universities that have PhDs

    I know people running businesses and I keep up with other business owners so we can share experience. What I’ve seen is that a PhD in business or even, in many cases, an MBA, can mean nothing without experience. Knowing PhDs doesn’t mean you know what’s going on in the real world.

    The same applies for knowing people who run their own companies. I hang out with a number of musician friends. I still can’t play that sax I have sitting in my living room.

    I didn’t want to play this card, but you are quite young and many of your statements show you are willing to believe whatever your MLM people are telling you (you also don’t specify if your friends with businesses are running MLMs or legitimate businesses). When I was 25, I could have made many of the same statements, but 20 years later I realize that when I was just out of college a few years and 25, I didn’t know 1/4 of what I thought I did.

    I’m bringing this up because the point is, as a student, you’ve got limited experience. You say you have run a few businesses. Where they registered as actual corporations? Did you have to deal with actual taxes and accounting? Did you make enough to make a living on them?

    I’m basically short circuiting part of this to say that your statements do show less experience and knowledge than your manner shows you think you have.

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  • No, it’s not the same risk

    I created my own business. It’s a limited corporation in that if something goes wrong, it’s the business, not me, that’s responsible. My assets are not at risk, but in most MLMs, they insist on members spending more and more money on training and on products. That means the members keep spending more and more money.
    While it’s possible to say that’s not required, the truth is that it is what happens in over 90% of the cases.

    You are right, though, that you have to establish boundaries and set timings so you can see if you should continue or not.

    As for resting, there has never been proof that you can rest and we have one member that managed an MLM business and was doing quite well and she’ll be glad to tell you that once it’s built, you can’t rest. You have to help others recruit and build the business. I’m sure you don’t want to believe me and would rather just call me a loser so you can ignore me, so I’ll just say I’m sorry you believe this and if you had an advanced degree and 10 years of management experience instead of being inexperienced and a student without a real world background, you’d see just how unrealistic this is.

    Most MLMs will not allow you to advertise your product at all.

    As for saying you’re the best, that’s not always the case. I have a portable DVD player sitting 1 foot from my arm as I type this. I didn’t buy it because it’s the best. I bought it because it was the one that most suited my needs. You’ve completely overlooked niche marketing.

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  • It can also be extremely harmful to anyone that expects to work hard

    I’ve seen people in MLMs that think all it takes is hard work, so they put in years of hard work and spent tens of thousands of dollars and lost quite a bit because the structure was geared to funnel their money upwards, not to help them succeed.

    As for the “losers” comment, that is way off base and, to be frank, totally out of line. That you are using such a term shows me that you have already had a good does of the Kool Aid. In other words, you’re already starting to believe everything your MLM people are telling you.

    I eat at restaurants. I enjoy meeting a friend and having something like the Pollo Al Chipotle at the place at the end of the street and being able to sit and chat and not have to worry about who cooks or does the dishes.

    Does that make me a loser? I have my own business. I pay my own bills and then some. I drive the exact car I deeply wanted to own and today I just saw my accountant and there’s a good chance that this year I’ll be paying more in taxes than I made in one year as a teacher. I could be paying 2-3 times what my ex girlfriend made in one year when we were dating and she was in an MLM.

    I’m sorry, but on that point you are wrong. Totally wrong.

    Now on to another point you make in that paragraph: If it’s an innovative product, it’s a good means of distribution. Oh, that and reduced cost. Both are wrong. Are you strong enough to learn why or if I dare to tell you, will you just call me a loser so you don’t have to listen to me telling you something?

    First, many people mistrust MLMs and won’t buy from them. That’s my experience in talking with people and it’s what I saw when my ex-girlfriend tried to recruit people. Second, if it’s innovative, there are many ways to bring it to market. Personally, if I came up with something like that, I’d patent it and basically sell rights so I’d make money without having to run a factory.

    If a product is innovative, there’s a good chance there’s a lack of trust in it until it’s proven. In America we have infomercials. These are shows that usually are on TV late at night and can run half an hour or longer. They’re nothing but long ads for products. Many people avoid what these infomercials sell because they don’t trust the product to do what the advertisers claim.

    I work in computers. I’ve seen innovated products and dumb products. I have never seen, in computers or any other field, a single innovative product that was marketed through an MLM that became well known or a household name.

    Now let’s look at the cost factor. You should know some of this already. Let’s look at a product I might buy at the supermarket. For convenience we’ll take something easy: An ear of corn. I just love corn on the cob! The farmer grows it and gets paid for it. Then a transport company carries it to a warehouse and gets paid for moving it and storing it. Then it’s brought to the distribution center in my city. Again, someone gets paid. Then it’s taken to my local grocer where I buy it and the grocer gets paid. If you count, that’s the farmer, two transport or warehouse companies, and the store that are probably getting paid.

    You will say MLMs eliminate the middle man, but let’s look closer. The farmer creates the product and gets paid for it. The trucker adds value by bringing it closer to me. The warehouse people add a value by storing it until it can be taken to the local grocer. He ads even more value to it by putting it in some place I can get to in a 5 minute drive and I can inspect the corn and take it home easily. Each of these people ads some kind of value to the product. They are paid for their work or contribution and each one is an important link in the chain.

    Now let’s look at a product made and sold through an MLM. Someone makes it, then it’s stored. I buy it, so it’s shipped to me. Sounds good so far, but let me take one example: My ex-girlfriend. If she sold me a product, she got a commission. Her friend’s sister, who was her upline, got a commission. Her friend’s sister’s Father-in-Law gets a commission because he’s upline and so does his mentor, and so do at least 2 other people I know between them and the top. That’s 6 people that get paid a commission on that product. Not one of them has done a single thing to ad value to what I just bought, but they make money on it.

    That’s good for them, but bad for me. Why am I paying for them to make money when they haven’t done a thing to make the product more valuable to me?

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