Posts Tagged ‘Pyramid Scheme’

Why should MLM and chain letter concepts be declared illegal in India?

Thursday, November 13th, 2008
MLM
SorrY asked:


How is “If you get four more people to join this pyramid scheme you get this free” type of Amway thing wrong and baseless in the first place?

a) It is not your job nor should you be expected to “convert” or “procure” other people. You cannot interfere in another peoples affairs unless you have provided them a non-repudiable benefit to them that they would not have got, had it not been for you.

b) You should only be expected to do something that you are capable of, and that can be done by you independently without needing anyone else. If you are to do something then there must have already have been a benefit transferred to you in cash or kind that you would not have got otherwise.

Since MLM and chain letter concepts violate these two basic economic principles. They should be banned. So Amway must be banned.

How many people concur?

Greggory

Is there even a single MLM company that focuses more on sales than recruiting?

Monday, July 21st, 2008
MLM
Marcello asked:


I just want to hear about one MLM company, just one, where the emphasis is on sales, not on recruiting.
Let me clarify, I am in no way interested in joining any MLM, so don’t bother. I am merely interested in hearing if any MLM’s exist that actually are about sales, and not a pyramid scheme. And please, don’t tell me focusing predominantly on recruiting to make money is not pyramiding.
Mexico4me, i think you need learn what leverage actually is rather than just accepting a term from your MLM buddies.

In your silly example you merely transfered the hours worked to your downline without changing the total hours worked. Suddenly we are to believe that you are still making the same amount of money working no hours yet your downline makes money as well? So because you merely spread the hours worked out among more people the company is paying out more money? Right. Do the math.

This is my EXACT point. MLM is set up with the mentality that its better to make money by recruiting people than it is to work hard.

You are delusional if you suggest that is about sales first. You have said in prior answers that no one sells enough personal volume to make a living without a downline and that is precisely why MLM is flawed. Its about making money recruiting (a pyramid) not about sales. The fact that some product is sold doesn’t negate that fact.
Sunny, saying MLM is part franchising is merely MLM tag lines, aka propaganda to justify to the naive.

Think about what you are suggesting. Most people are not sales driven, yet you are telling them its the same as a franchise.

Can you actually imagine a franchise operation that didn’t first sell product? Gee, your new franchise is not moving any product, here is the answer, just open up more franchises! Brilliant.

Only in MLM are foolish principals like this accepted as intelligent.

Curt

Do people in MLM (Network Marketing) honestly think all business is a pyramid like MLM?

Wednesday, August 15th, 2007
MLM
Marcello asked:


You always hear them give the line that all business is set up like a pyramid to justify that MLM is built on recruiting people.

While real business has fewer people in high earning roles, it seems MLMers miss the very obvious point that even a lowly janitor at McDonald’s doesn’t have to recruit 5 other janitors to make a living wage.

Do people in MLM really think its the same? Do they really miss the point that real business doesn’t have to keep hiring people for infinity to keep making money for its employees?

It just seems such an obvious difference, yet it makes no sense that people in MLM are convinced it is the same.
Andre - while you are correct about the legality, let’s not let the absurdidty of the whole thing get lost on us.

The fact that MLM gets around being illegal and not a straight pyramid scheme is ONLY becuase there are products and services available to be sold by the reps; however, the fact is nealry all MLMers focus their attention on recruiting others instead of sales - meaning although it is legal for all intents and purposes it is virtually the same.

If MLM companies wanted to put the focus on personal sales instead of recruiting then how can you expalin that ALL MLM compensation plans allow you to move up the ranks ONLY by recruiting others. You can be the worlds best salesperson but unless you recruit other people you can’t obtain the top rank in any MLM compensation plan.

Let’s get serious, they are the same, depsite anyone considering it “legal” or not.
L.F.Heap - you spent spent your entire answer describing any sales company.

Evidently the point of this question was lost on you because if MLM was focused on sales and not recruiting then there would be no issue.

The question was in reference to the fact that MLM push recruiting, and weigh it as FAR more important than personal sales, and the evidence is in the MLM compensation plans.

Ramona

i got scammed by my frend in mlm bisiness can i sue him?

Sunday, July 8th, 2007
MLM
Chuck e Cheese asked:


i got scammed by my frend in mlm bisiness can i sue him? He pressure me to invest in pyramid scheme $499 he said it was legid bisiness at first but i find out yu have to lye to de peple to get them tu join under yu. i need advice please!

Shelton

What is the difference between pyramid scheme & MLM, and prodcut brokerage and internet marketing companies?

Saturday, January 6th, 2007
MLM
Anhelina. asked:


And how product brokerage companies are so much better.

Unknown