Multi-level marketing, also known as "network marketing", "referral marketing", and "pyramid selling", among other names, is a system where an individual sells products from a vendor, and receives income from not only the sales of said products, but also sales from others that individual recruits (called a "downline"). Supporters of MLMs claim that these programs offer many of the benefits of working from home, allow new friendships to be formed, provide individuals with opportunities to own their own business and allow participants to recruit their friends and family into a program so that "they can share the benefits" of said program. Opponents compare MLMs to pyramid schemes, note that the vast majority (at least 99%) of participants in MLMs lose money in such programs, and criticize the often incredibly high prices of products sold by these vendors, among others. Notable MLMs, past and present, include Amway/Alticor/Quixtar, Avon, Herbalife, LIFE Leadership, Mary Kay, MonaVie, and Vemma. What do you think of multi-level marketing programs? Have you been personally affected by a MLM in any way, whether it be from a friend trying to recruit you, or you were (or are still) involved in a MLM program yourself? Back in the summer of 2009, I almost got roped into MonaVie by a friend that I had graduated high school with. She had gotten into that program the year before, and took part in it via a distributorship known as "TEAM" (Together, Everyone Achieves More), founded by Orrin Woodward (who also graduated from the same high school my aforementioned friend and I did, though many years before). This 'friend' set up a meeting that ended up being at home, and during that meeting, my mom was not happy about the hard selling tactics, and the fact that my friend brought some other woman unannounced that she claimed was her "mentor". After that, my mom scolded me and said that I shouldn't fall for juice selling pyramid schemes such as the one my friend was involved in and to not fall for claims that some exotic juice can cure cancer. Needless to say, I eventually cut off all contact with this friend, especially after she got married and moved away. Last I checked, though, it appears that she's now involved in LIFE Leadership, a "financial freedom" training materials scheme also set up by Mr. Woodward. Sure doesn't say very well about the school I went to.
The only name I recognize from that list is Mary Kay, and I see it practically everywhere... bothers me because the people who do it are usually people who need the money to supplement their income and have limited options, all the while not realizing that they're getting scammed as much as the people they're trying to sell their wares to.
Oof, I remember my brother talking about how he almost got roped into a pyramid scheme himself. He didn't go through with it, obviously, though I don't quite remember the details of that exchange. In the end however, our stinginess with money and overall skepticism saved us a fortune. Just goes to show how having a sense of skepticism is a good thing sometimes.
I continually get messages that are clear Ponzi schemes, which I screenshot to create a Messageboard of Scam. My way of coping. Works. Story time: a friend tried to convince me to join this online club, which, apart from having no interest in, I thought was really weird. You would use real money to buy things, like gift cards for real-life stores. They kept promising rewards from all the money put in, but nothing happened ('technical difficulties' and all). I refused to join. She got mad and ghosted me, which, though I am sorry for, was her decision. She eventually found out it was a scam. #MissingNo
My mother was involved in a network like this one quite a long time ago. It was called "Amway" and specialised in beauty products. I don't think she stuck with it for more than a few years, because after we moved house she didn't have much contact with them after that. They did sell good things (the particular favourite was the laundry detergent, which has worked better than any other we've used), though now we try to find them at various general stores if at all possible. Of course, all of this was a little over 20 years ago. Amway's quality since degraded over time and I don't even know if they still exist - if they do, it'll be in some isolated pockets somewhere.
The thing about multi-level marketing is that most of the income you're likely to get would come from your potential recruits. But you can only recruit a certain number of people before running out of people to recruit. If you were to recruit five people, then those five people would each try to recruit five people, that would already be 30 people. Those other 25 people (After the 5 you would recruit) would have to recruit 125 people combined in order to keep up with those numbers. You could see how that would add up over time. And each of those people needing to pay the person above them just leads to the people at the bottom being pretty much drained. Aside from that, multi-level marketing is essentially a pyramid scheme. They're just called by a different name because pyramid schemes are illegal.
I know a lot of people who are part of these. My mom is actually involved in two. My husband had someone try to recruit him, and I've been asked by my mom's "mentor". I don't like them and will never join one. And while I'll voice my concerns I won't put down people who are part of them unless they're being very obnoxious about it.
