Wife determined to do multi-level marketing, key risks?

[bas1c]

Tweak...does it not, at face value, at all seem odd that if these products were so great then why are they using random ass people as their distribution system? Why don't they direct sell to the customers or use large retailers as distributors? You would think that a company like WalMart would have more market exposure than Joe Schmoe in West Virginia with absolutely no connections.

 

[Vdubchaos]

Yeah, exactly. It's gotten beyond the point of whether MLMs are a good idea or not, whether she's a good candidate for one, how much I respect her abilities, or any other concern. Her stated objective is to make money, my mostly unstated one is to limit the amount of money we could lose and preserve the relationship (or at least not further strain it). My feelings about the business prospects (and quite frankly, my opinion of and respect for her for doing this despite my very reluctant buy-in) are secondary at this point.

Wait till you start losing family and friends as she struggles to make ends meet.

These places simply exploit people's friendships/family. Where else will she sell this crap to? Door to door? Front of the supermarket?

NFL club is guaranteed if she continues!!!

Least you can do is tell her to not involve YOUR family or YOUR friends cause remember, you guys are a unit. What comes from her = coming from you (to your family/friends).

Proceed carefully.

The easiest and best way to filter out BS is 1 simple question. How much are you getting paid an hour. If the place can't answer that question they are not just exploiting your friends/family.....they are exploiting your TIME.

Make sure she keeps track of that as well!!! Each and every min/hour!

 

[Delita]

You should read Bill Ackman's presentation on Herbalife:
http://factsaboutherbalife.com/robin-hood-in-reverse/

 

[bas1c]

Wait till you start losing family and friends as she struggles to make ends meet.

These places simply exploit people's friendships/family. Where else will she sell this crap to? Door to door? Front of the supermarket?

NFL club is guaranteed if she continues!!!

Least you can do is tell her to not involve YOUR family or YOUR friends cause remember, you guys are a unit. What comes from her = coming from you (to your family/friends).

Proceed carefully.

The easiest and best way to filter out BS is 1 simple question. How much are you getting paid an hour. If the place can't answer that question they are not just exploiting your friends/family.....they are exploiting your TIME.

Make sure she keeps track of that as well!!! Each and every min/hour!

Also, do not buy the tapes, books, or tickets to conventions.

 

[Tweak155]

Your suggestions of support and positive attitude being the keys to success in an MLM are the types of things they say.snip

Did I not just acknowledge that attitude and determination are some of the characteristics of successful people? I am saying it's bad when those are the proscribed solutions for problems people experience when they are not successful at an MLM. Grow your spirituality, attitude, or whatever all you want. It's not going to improve your business acumen, marketing skills, and soft skills for sales.

You acknowledge it, but paint it as bad as your first point due to its association with MLM.

The reality of it is, most the time people fail at something is due to their own determination. This also includes MLM's.

I'm not saying MLM's are a good thing, I'm saying if THAT IS WHAT YOU WANT TO DO, then do it if you can bear the risk it brings to the table. In this case, it sounds like they can although it is not ideal.

I'm supporting that you do what you want to do. In this case, it happens to be an MLM. You are equating that to supporting MLM's which I am not doing. I do not recommend MLM's to most people.

 

[Kaido]

Tweak...does it not, at face value, at all seem odd that if these products were so great then why are they using random ass people as their distribution system? Why don't they direct sell to the customers or use large retailers as distributors? You would think that a company like WalMart would have more market exposure than Joe Schmoe in West Virginia with absolutely no connections.

Exactly. Like Monavie (don't drink it if you're pregnant!), you can buy acai berry juice pretty much anywhere these days. I've only ever seen a couple products that were actually good (Mary Kay, which is supposed to be good, and there was a winter hand lotion that my buddy got that was amazing, wasn't oily on your hands at all).

If it's good, it will get out there to the market because people will want to buy it.

 

[Tweak155]

Tweak...does it not, at face value, at all seem odd that if these products were so great then why are they using random ass people as their distribution system? Why don't they direct sell to the customers or use large retailers as distributors? You would think that a company like WalMart would have more market exposure than Joe Schmoe in West Virginia with absolutely no connections.

I'm not sure since I've never run an MLM company from the executive board. From my experience as a representative, though, I would ascribe it to two reasons:

1 - The type of mindset this type of company attracts or creates

2 - Your profits are likely higher

But again, that is just speculation.

 

[BikeJunkie]

Them "joining in on the fun" has no negative affect on me, unless I think in a negative fashion. Good for them if that's what they choose to do. If I don't feel I'm earning enough money, I'll find a way to do it. I need no one specific thing or person.

Empty platitudes. Totally non-specific. Textbook MLM-speak. Thank you for proving my earlier point 😉

It's sad you don't see this as an opportunity to improve yourself.

Oh yes, bringer of truth... if only we could all heed your expert advice and improve our lives! Which nutritional product or self-help book do I start with in order to propertly begin The Path?

Huh? Who said I was proud or behind MLM's? Try re-reading this entire thread until you realize the advice I give has nothing to do with MLM's and everything to do with supporting things your SO wants that you can do within reason. According to the OP, they can financially lose several hundred dollars without much, if any, real impact. This is his only real risk financially, but not supporting your SO cannot be measured in dollars, and if it could, I would hope it is much more valuable to you than that.

DODGE.

Let me help you to refocus (I'm sure there's a book for that): WHICH NUTRITIONAL PRODUCT DID YOU SELL ONLINE?

Better?

stop being cagey about it

Who's avoiding who now?

 

[Vdubchaos]

Exactly. Like Monavie (don't drink it if you're pregnant!), you can buy acai berry juice pretty much anywhere these days. I've only ever seen a couple products that were actually good (Mary Kay, which is supposed to be good, and there was a winter hand lotion that my buddy got that was amazing, wasn't oily on your hands at all).

If it's good, it will get out there to the market because people will want to buy it.

I used to work with a guy that got caught up in the Herbal/supplement crap. He was not only selling it to everyone he knew, he also purchased it and used it.......him AND his family.

Couple of months later his 18 year old son DIED. No one knew the cause of death.

I wouldn't be surprised if it was the supplements his daddy was giving him though.....

 

[BikeJunkie]

Tweak...does it not, at face value, at all seem odd that if these products were so great then why are they using random ass people as their distribution system? Why don't they direct sell to the customers or use large retailers as distributors? You would think that a company like WalMart would have more market exposure than Joe Schmoe in West Virginia with absolutely no connections.

Stop it with your newfangled logical reasoning and stuff

(Answer: BECAUSE WE WANT TO SHARE OUR PROFITS WITH ***YOU***!!!!)

 

[BikeJunkie]

The reality of it is, most the time people fail at something is due to their own determination. This also includes MLM's.

You're failing at this thread. Better buy a Determination Boost book. Or something.

 

[bas1c]

You acknowledge it, but paint it as bad as your first point due to its association with MLM.

The reality of it is, most the time people fail at something is due to their own determination. This also includes MLM's.

I'm not saying MLM's are a good thing, I'm saying if THAT IS WHAT YOU WANT TO DO, then do it if you can bear the risk it brings to the table. In this case, it sounds like they can although it is not ideal.

I'm supporting that you do what you want to do. In this case, it happens to be an MLM. You are equating that to supporting MLM's which I am not doing. I do not recommend MLM's to most people.

I painted it in a bad light because often times attitude and determination are the only advice given without anything else. I liken it to when people are faced with various personal problems (financial, marital, etc.) and people tell them to pray more as the solution.

Doing what you want is fine until it impacts someone else. This lady is the partner of another. Her decisions impact not only just herself. And just because someone wants to do something doesn't mean you have to support them if you feel like it's wrong. My friend joined Ameriprise with no degree or financial background. He fancied himself as some sort of financial advisor when he is terrible with money and has no idea about mutual funds, stocks, ETFs, etc. So I argued with him to deter him from going down that path because his decision to work there could lead to him giving terrible financial advice to unsuspecting victims that are trusting their entire nest egg to him. I was even more adamant because I knew about how they operated and pressure investors to stick with only RiverSource funds (since it's their own funds) so that the can get large commissions. Of course our friendship ended because basically I was somebody that did not have faith in him and was a sheep working for the man.

 

[Tweak155]

Empty platitudes. Totally non-specific. Textbook MLM-speak. Thank you for proving my earlier point 😉

Textbook common sense-speak. Like I said, read some personal growth books. Ultimately all you're admitting is that MLM people are smarter than you, which a majority of them likely are not.

Oh yes, bringer of truth... if only we could all heed your expert advice and improve our lives! Which nutritional product or self-help book do I start with in order to propertly begin The Path?

I've stated them no less than 2 times (my two favorite). However pick any which pique your interest. I am confident most of them are based on the same principles although I've only read a small subset of them.

DODGE.

Let me help you to refocus (I'm sure there's a book for that): WHICH NUTRITIONAL PRODUCT DID YOU SELL ONLINE?

Better?

I'm not trying to dodge anything. You asked what type and nutritional product was one of your options. If you wanted to know which type, you should have asked. It was ganoderma coffee.

Who's avoiding who now?

You?

 

[IndyColtsFan]

Brother-in-law sells Advocare. They generally ignore us but once he and his wife started selling it, they made sure they emailed my wife to hit her up. My wife pretty much told them off and now we just point and laugh.

 

[Vdubchaos]

Brother-in-law sells Advocare. They generally ignore us but once he and his wife started selling it, they made sure they emailed my wife to hit her up. My wife pretty much told them off and now we just point and laugh.

Story of MANY MANY Americans as more and more people fall for these schemes...

 

[Tweak155]

I painted it in a bad light because often times attitude and determination are the only advice given without anything else. I liken it to when people are faced with various personal problems (financial, marital, etc.) and people tell them to pray more as the solution.

Doing what you want is fine until it impacts someone else. This lady is the partner of another. Her decisions impact not only just herself. And just because someone wants to do something doesn't mean you have to support them if you feel like it's wrong. My friend joined Ameriprise with no degree or financial background. He fancied himself as some sort of financial advisor when he is terrible with money and has no idea about mutual funds, stocks, ETFs, etc. So I argued with him to deter him from going down that path because his decision to work there could lead to him giving terrible financial advice to unsuspecting victims that are trusting their entire nest egg to him. I was even more adamant because I knew about how they operated and pressure investors to stick with only RiverSource funds (since it's their own funds) so that the can get large commissions. Of course our friendship ended because basically I was somebody that did not have faith in him and was a sheep working for the man.

Which is why I based my advice off of the fact the OP stated they can financially attempt the venture without much risk. Feeling like something is wrong is not the same thing as telling someone they cannot do it. Explain why you feel MLM's are wrong which focuses your negative opinion on the company, rather than the person's abilities or limitations.

When I was making money at an MLM, my approach was to describe what I do and what it takes to earn money. I let the person decide if it is something they wanted to try or not. I never tried to convince someone they should try to do it.

I enrolled way less people than some distributors, but I never felt anyone enrolled who didn't want to be there - which I valued more.

 

[BikeJunkie]

Textbook common sense-speak. Like I said, read some personal growth books.

On whose authority are personal growth books "common sense-speak?" That would be hilarious if it weren't so sad that you actually believe that 🙁 I suppose the earth is also flat and only 2000 years old?

Textbook common sense-speak. Like I said, read some personal growth books. Ultimately all you're admitting is that MLM people are smarter than you, which a majority of them likely are not.

LOL that doesn't even make sense. But it pays to be stupid I guess, because while a bunch of "smart" MLM cultists are failing, I'm clearing well into six figures with a legitimate business and am beating back business with a stick. That's why it's so funny to have you try to prescribe a genre of book to me :biggrin:

I'm not trying to dodge anything. You asked what type and nutritional product was one of your options. If you wanted to know which type, you should have asked. It was ganoderma coffee.

Try again there, Champ:

Which nutritional products? Seriously, if you're so proud of it and stand behind the scheme... err... business, stop being cagey about it.

That taste in your mouth? It's a combination of crow and egg. But at least, after 5 pages, you finally uttered a direct, concise statement :thumbsup:

 

[Ns1]

 

[Tweak155]

On whose authority are personal growth books "common sense-speak?" That would be hilarious if it weren't so sad that you actually believe that 🙁

How does common sense become common sense?

LOL that doesn't even make sense. But it pays to be stupid I guess, because while a bunch of "smart" MLM cultists are failing, I'm clearing well into six figures with a legitimate business and am beating back business with a stick. That's why it's so funny to have you try to prescribe a genre of book to me :biggrin:

My household income is well into multiple six figures, does that make me right and you wrong? Hardly.

Seriously, The Strangest Secret is only about 32mins I believe. You will <hopefully> see where I am coming from. Best of luck to you and yours. I can only invest so much time into a single person. I hope others reading this may benefit.

 

[IndyColtsFan]

Story of MANY MANY Americans as more and more people fall for these schemes...

He's my FB friend and a couple of times per week, he'll post an Advocare blast. It is pretty comical. He is doing it to "make more money so he can spend more time with his kids." This ignores the fact that he coaches teams after school and on the weekend and travels for some martial arts stuff. Money isn't going to help him spend more time with his kids.

 

[bas1c]

Which is why I based my advice off of the fact the OP stated they can financially attempt the venture without much risk. Feeling like something is wrong is not the same thing as telling someone they cannot do it. Explain why you feel MLM's are wrong which focuses your negative opinion on the company, rather than the person's abilities or limitations.

When I was making money at an MLM, my approach was to describe what I do and what it takes to earn money. I let the person decide if it is something they wanted to try or not. I never tried to convince someone they should try to do it.

I enrolled way less people than some distributors, but I never felt anyone enrolled who didn't want to be there - which I valued more.

Why I believe MLMs are wrong will probably be invalid to you because they are my own opinions and you will probably refute them as me being ignorant.

• They seem to usually attract or target folks that are down on their luck and looking for an out
• The company and the people who recruit misrepresent their success, wealth, and the amount of time they put into it
• They attempt to sell the MLM structure as something different than a typical corporate structure
• The business model of untrained, inexperienced independent contractors acting as the distribution system makes little sense to me (propaganda and training tapes do not count in my book)
• The secretive and sly methods that are used and encouraged to try to get unsuspecting people into a recruitment meetings (you might not do it...but SOOOOO many others do)
• I typically dislike anything that has the seems-to-good-to-be-true quality or markets itself as the get <anything> quick/easy solution

 

[Squeetard]

I joined an MLM in the early nineties. Sold water filters. Sold very few water filters. They made great coffee. Never hit up my friends or anyone, yuck. A few peeps at my place saw it and bought one. Made next to nothing.

BUT.

I was working full time but having this home based side business allowed me to write off a portion of my rent, utilities, car, fuel etc.. I'd get about 3 grand back on the income tax I paid through my job. So there was that.
Initial investment was about 2500 in product, never bought more, sold most of it over a few years and saved about 10 grand in income tax.

I had no illusions of getting rich, and the people who did buy liked the product. I would never whore myself out like that, taking advantage of your connections to sell them stuff. That is just low.

 

[Tweak155]

Why I believe MLMs are wrong will probably be invalid to you because they are my own opinions and you will probably refute them as me being ignorant.

• They seem to usually attract or target folks that are down on their luck and looking for an out
• The company and the people who recruit misrepresent their success, wealth, and the amount of time they put into it
• They attempt to sell the MLM structure as something different than a typical corporate structure
• The business model of independent contractors acting as the distribution system makes little sense to me
• The secretive and sly methods that are used and encouraged to try to get unsuspecting people into a recruitment meetings (you might not do it...but SOOOOO many others do)
• I typically dislike anything that has the seems-to-good-to-be-true quality or markets itself as the get <anything> quick/easy.

I'm not asking why you believe MLM's are wrong. I don't believe you understood my post, or perhaps I was unclear.

 

[BikeJunkie]

How does common sense become common sense?

Well, I'm pretty sure one of the primary requirements is that it is objective, not subjective. Since self-help books are 99% the latter, they don't qualify when a thinking man's standards are applied.

Seriously, The Strangest Secret is only about 32mins I believe. You will <hopefully> see where I am coming from. Best of luck to you and yours. I can only invest so much time into a single person. I hope others reading this may benefit.

Sorry bud, after you so illustriously put your inability to read and comprehend on display, I'll probably not put too much stock in the books you read, the YouTube videos by which you live your life, and this "multiple six figured household income" you allege. You lack credibility.

I'll make you a deal, I'll watch Strangest Secret if you watch Illusion of Superiority.

 

[BikeJunkie]

Why I believe MLMs are wrong will probably be invalid to you because they are my own opinions and you will probably refute them as me being ignorant.

• They seem to usually attract or target folks that are down on their luck and looking for an out in other words, naive and exploitable
• The company and the people who recruit misrepresent their success, wealth, and the amount of time they put into it
• They attempt to sell the MLM structure as something different than a typical corporate structure but also not a pyramid scheme, but sort of a pyramid scheme!
• The business model of untrained, inexperienced independent contractors acting as the distribution system makes little sense to me (propaganda and training tapes do not count in my book) that's because quality in-demand products are sold and distributed by professionals who are trained in sales, marketing, and global logistics
• The secretive and sly methods that are used and encouraged to try to get unsuspecting people into a recruitment meetings (you might not do it...but SOOOOO many others do) if you feel the need whisper the message to your prey even though no one else is around, you're probably doing something treacherous
• I typically dislike anything that has the seems-to-good-to-be-true quality or markets itself as the get <anything> quick/easy solution that's because rational people succeed by recognizing red flags such as this

Agreed, and expanded