Why You Should Avoid All Products Sold Thru a MLM

A place to get your questions answered from McDougall staff dietitian, Jeff Novick, MS, RDN.

Moderators: JeffN, carolve, Heather McDougall

Why You Should Avoid All Products Sold Thru a MLM

Postby JeffN » Mon Apr 04, 2011 8:03 am

The Case (for and) against Multi-level Marketing (MLM): The complete guide for countering the effects of endless chain opportunity recruitment schemes – or product-based pyramid schemes

By Jon M. Taylor, MBA, Ph.D.

This new book explodes many MLM deceptions.

The book's introduction states:

**MLM as a business model is predicated on an endless chain of recruitment, as are "pay to play" chain letters and no-product pyramid schemes.

**Every one of the compensation plans of hundreds of MLMs Taylor has analyzed assumes an infinite and virgin market, neither of which exist in the real world. MLM is therefore fundamentally flawed, uneconomic, and deceptive.

**Loss rates are extraordinary - over 99% for all of the MLMs for which Taylor has been able to obtain relevant data.

The 313-page eBook can be downloaded free of charge from

http://mlm-thetruth.com/CaseForAndAgainstMLM.html

Taylor's Web site (http://mlm-thetruth.com) contains a wealth of additional information.

In Health
Jeff
User avatar
JeffN
 
Posts: 9413
Joined: Tue Jan 08, 2008 5:56 am

Re: Why You Should Avoid All Products Sold Thru a MLM

Postby Wendy Jane » Tue Apr 26, 2011 6:26 pm

JeffN: some years ago I had a book titled "All That Glitters Is Not Gold." If I am correct that is the exact title. I'm sure the book is out of print. Anyway the author spoke about MLM companies in great detail.

The book was partly her personal story of how MLM companies destroyed her family, and part story as to why you should run away from companies like these. It turns out she was in more than one MLM company. If anyone out there finds this book, it is well worth your time. Perhaps I should do a search and come back with an exact title, author, and book number.

She never named actual companies. But she did say something I remember well. She said that if the products they were selling were THAT GREAT how come you couldn't purchase them in any store? How come you could only obtain these products from home demonstrations and from friends/familiy members and relatives who sold them? Why couldn't you purchase these products in your local grocery store, drug store, etc? Her point was valid.

By the way my hubby and I got hit up at least 5 times to join a MLM company. We said "no" all 5 times. We are not sorry we did so.
Wendy Jane
 
Posts: 365
Joined: Tue Nov 04, 2008 5:42 pm

Re: Why You Should Avoid All Products Sold Thru a MLM

Postby JeffN » Tue Apr 26, 2011 7:03 pm

Wendy Jane wrote: said that if the products they were selling were THAT GREAT how come you couldn't purchase them in any store? How come you could only obtain these products from home demonstrations and from friends/familiy members and relatives who sold them? Why couldn't you purchase these products in your local grocery store, drug store, etc? Her point was valid.


Agreed.

It is the same thing with many supplements and products. If the supplement (or product) is so great, why don't the huge pharmceutical (and/or food) companies buy the rights to it and sell it? They have the money and the resources and could easily do so.


In Health
Jeff
User avatar
JeffN
 
Posts: 9413
Joined: Tue Jan 08, 2008 5:56 am

Re: Why You Should Avoid All Products Sold Thru a MLM

Postby bunsofaluminum » Sun May 29, 2011 1:16 pm

Wendy Jane wrote:
She never named actual companies. But she did say something I remember well. She said that if the products they were selling were THAT GREAT how come you couldn't purchase them in any store? How come you could only obtain these products from home demonstrations and from friends/familiy members and relatives who sold them? Why couldn't you purchase these products in your local grocery store, drug store, etc? Her point was valid.


My ex an I were in Amway briefly, and I don't know why their products aren't available in regular retail venues, but I do know they are absolutely THE BEST products. I had an opportunity to compare their make-up line (artistry) to Mary Kay...there is no contest. The Amway is FAR better.

Mind you, the whole MLM atmosphere got to rubbing me wrong REAL quick...there was nothing about it that I liked. There was deception, playing to the fears and greed of potential signees, and even somewhat of a cult mentality. I didn't like it and we didn't stay long, but the Amway products that I got a chance to use really were the best.
JUST DON'T EAT IT

I heart my endothelial lining
by red squirrel

simple, humble food
by f00die

The rest is an industry looking to make a buck off my poor health
by Pamela, a FB user
User avatar
bunsofaluminum
 
Posts: 6551
Joined: Sat Sep 05, 2009 8:17 pm
Location: Ogden Utah

Re: Why You Should Avoid All Products Sold Thru a MLM

Postby JeffN » Sun May 29, 2011 1:29 pm

Your experience is shared by many.

bunsofaluminum wrote:but the Amway products that I got a chance to use really were the best.


The problem is, for the system to work and to pay the commissions at all levels, you have to pay a very high premium price for the products, which would not be included if they were sold through regular commercial channels.

In Health
Jeff
User avatar
JeffN
 
Posts: 9413
Joined: Tue Jan 08, 2008 5:56 am

Re: Why You Should Avoid All Products Sold Thru a MLM

Postby bunsofaluminum » Sun May 29, 2011 2:06 pm

JeffN wrote:Your experience is shared by many.

bunsofaluminum wrote:but the Amway products that I got a chance to use really were the best.


The problem is, for the system to work and to pay the commissions at all levels, you have to pay a very high premium price for the products, which would not be included if they were sold through regular commercial channels.

In Health
Jeff


very VERY expensive, which is why for the most part, we were advised not to sell the product, but the business, because customers would go to cheaper stuff if they weren't signed up, but once signed up, they'd work hard to get others signed on, too. Part of the plan was a member had to get 200 "points" every month, which equaled $400.00 FOUR HUNDRED of Amway product...:shock:

A lot of the upline profit also came from us downliners buying motivational tapes and books, btw.
JUST DON'T EAT IT

I heart my endothelial lining
by red squirrel

simple, humble food
by f00die

The rest is an industry looking to make a buck off my poor health
by Pamela, a FB user
User avatar
bunsofaluminum
 
Posts: 6551
Joined: Sat Sep 05, 2009 8:17 pm
Location: Ogden Utah

Re: Why You Should Avoid All Products Sold Thru a MLM

Postby JeffN » Tue Nov 08, 2016 9:25 am

Multilevel Marketing
Last Week Tonight with John Oliver (HBO)
Published on Nov 7, 2016

Multilevel marketing companies claim to be legitimate businesses, but some seem awfully…pyramid shaped. John Oliver and Jaime Camil demonstrate how they work.

https://m.youtube.com/watch?v=s6MwGeOm8iI
User avatar
JeffN
 
Posts: 9413
Joined: Tue Jan 08, 2008 5:56 am

Re: Why You Should Avoid All Products Sold Thru a MLM

Postby JeffN » Mon Jan 20, 2020 7:37 am

MLMs Are Preying on the Dream of Entrepreneurship
By Mona Bushnell
Business.com writer
Aug 22, 2019

Multilevel marketing companies target women, immigrants and low-income minorities.

https://www.business.com/articles/mlms- ... mmigrants/

Wherever there's something people desperately want, there are predators looking for a way to take advantage of the situation. It happened with the housing crisis, when lenders offered the American dream of home ownership to people who couldn't afford it, and it's happening now with MLM companies offering the dream of entrepreneurship to people who want to start a business.
User avatar
JeffN
 
Posts: 9413
Joined: Tue Jan 08, 2008 5:56 am


Return to Jeff Novick, RD

Who is online

Users browsing this forum: No registered users and 9 guests


cron

Welcome!

Sign up to receive our regular articles, recipes, and news about upcoming events.