Handling Objections: Is MLM a Pyramid Scheme?

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Tim Sales built an MLM business with an income of over $150,000 per month with 2,400+ new distributors joining per month. He now creates training tools and sales aids for everyone in network marketing.

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[MLMsellsSnakeOil]

MLM's nearly always lead to certain loss for new recruits. The founders and a few are at the top of their pyramids of participants are enriched at the expense of a multitude of downline participants, approximately 99% of whom lose money. The sale of products is distributor-driven, not market driven. Most products are sold to new participants to get in on this "ground floor opportunity." Very few products are sold outside the "business". One more reason MLM is a Pyramid Scheme.

[MLMsellsSnakeOil]

@1074kaehler BTW, I asked you what company you were involved with, and you have ducked ever giving me an answer. What are you afraid of? Let me Analyze it, and if I don't think it exploits people I will say so. The MLM industry is in bed with the GOP, gives them tons of money and under Bush they stopped prosecuting Pyramid Schemes. Bush has appointed someone heavily affiliated with Amway to head the FTC. The fox guarding the chicken coop!

[MLMsellsSnakeOil]

@1074kaehler Once again, MLM distributors recruit their own competition. How does this make any sense? It doesn't make sense for a direct seller to recruit their own competition, unless selling pays less than recruiting. This is why MLM isn't about the product, because the structure of their organization pays less importance to selling than recruiting.

[MLMsellsSnakeOil]

@1074kaehler The Amway decision of 1979 ruled in favor of Amway because the courts didn't understand the difference between market and total saturation. In a town of 100,000 people, the notion of total saturation of 100,000 distributors would be absurd. But the market could be said to be saturated with 10 or 20 distributors, after which adding more distributors would mean less and less opportunities for them to thrive in the market because the market is too saturated.

[MLMsellsSnakeOil]

@1074kaehler SELLING PRODUCTS IN MLM DOESN'T PAY A DIME AS THE OVERHEADS ARE NOT HIGH ENOUGH TO COVER YOUR COSTS, WITHOUT CHAIN RECRUITING. If I am a Arbonne Distributor and make a $50 sale on lotion, my commission is 4%=$2, my DM makes 8% of the sale and the EDM Makes 8%. So, the person who does the work, doesn't get paid as much as those above in the Pyramid. 4% commission is so low, that the only incentive to make money is to recruit. Do you understand this?

[1074kaehler]

@MLMsellsSnakeOil - No, they are expected to sell as much product as possible to everyone whom walks into the door. Once again, you make reference to the way some companies distributors choose (wrongly) to move there product. It has nothing to do with the industry. Unlike you, I have work to do. You have no foundation to base any of your comments on. You are a bored person, who in all reality, does absolutely nothing in any business world. I have taken to much time discussing this with you.