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?