Menu



error This forum is not active, and new posts may not be made in it.
Question; Pyramid, chain or legit MLM?
12/7/2005 11:58:10 PM
Hi: In the Open for questions forum, Rudy asked; ========================================== 1. Do you know the difference between a pyramid scheme, modern versions of the chain letter, and legitimate MLM? 2. Which MLM or Network marketing companies would you consider as having the integrity worthy of your attention and hard earned money? 3. Is it better to get started in an MLM or online/internet venture with a minimum of information and hope more will come -or- wait until all the information is in before committing to it? 4. How much and what kind of information do you need to commit to starting in a venture? ========================================== 1) The USA goverment says that modern chain letters are pyramids, so I tend to ask - pyramid or legitimate MLM? According to definitions by the USA Securities Exchange and the FTC, a pyramid makes it's money from recruiting members while a legitimage MLM makes it's money from selling products or services. But, even in saying that, the SEC and FTC both say that a lot of pyramids look SO MUCH like MLM businesses that it's often hard to tell the difference. (Mostly because both involve recruiting a downline and many pyramids include a "product" to try look more MLM and less pyramid. ) 2) For me, one of the first marks of integrity that I look for is a company that allows consumers to buy their products without joining the organization. I don't want to join an MLM for every product I like. lol. Integrity is a hard thing to measure, because companies don't have integrity - people do. So, within the same company, you can find people that do have integrity and people that don't, as well. But, if the founder (or people in the top levels) lack integrity, then I'd think the farther up one gets, the more that will become evident. 3) Really, I don't think we ever have "all" the information that there is starting out. I do think it's important to do our due diligance to check things out as best we can - but we also have to realize that we will learn more as we go along, too. The same thing applies offline and online. If I work for a company, I'm going to know much more about what goes on "inside" the company a year down the road than the first week. But, before I commit to that first week, I'll have done some checking to make sure they're above board to the best of my knowledge and abilities. 4) What kind of information. Hmm. That's a good question. The very first one I go with is "Does this smell right? Feel right?" I have to believe in the products, for certain. I could never sell anything that I wouldn't tell my family to buy. One of the things that's an immediate turn off (to me) is when the people involved are evasive or overly hype the 'potential riches.' In real life, I'd never follow a total stranger to an unknown destination to sell a product that I don't know anything about... and I wouldn't do that online, either. So, I guess the short answer would be I try to use a combination of gut instinct and common sense. : ) Linda P.S. Anyone else... can you add to that? - Opinions? - Experiences? - Do you know of an MLM that allows consumers to buy without joining? - What do you look for before committing?
+0
Cheri Merz

492
1258 Posts
1258
Invite Me as a Friend
Person Of The Week
Re: Question; Pyramid, chain or legit MLM?
12/8/2005 12:31:05 AM
Hi, Linda, My favorite subject! At the end of your post you asked if we knew of an MLM that allows consumers to buy without joining. Every legitimate MLM allows consumer purchases--as I understand it, that's what separates the wheat from the chaff. What I look for before committing: -A product that I'm interested in using for myself or my family and that I think will have broad appeal. -Upline and corporate responsiveness to my questions and the sense that the questions are being answered honestly without evasion. -A system to follow for team building and marketing. -NO front-loading of product! This lets out most direct-sales organizations for me, and I have two very good reasons for that: Tupperware and Weekenders. Love the products; hard businesses in which to make money. Please don't throw things at me if you represent these companies. I speak only from my own experience. -A pay plan that I can understand, that the company can sustain, and that is fair to everyone--hardest of all to find! The strongest advice I could give anyone who is just starting out in this business is to learn to analyze the pay plan. Don't take the company projections to heart. Organizations never fill in neatly like the projections show. If your pay depends on the balance being perfect, be prepared for frustration. If it depends on someone below you meeting a difficult qualification, be prepared to not be paid. If you aren't analytical, find someone who is to help you. The trouble with MLM is that companies and unscrupulous or overly optimistic reps make it sound like there is no work involved. Nothing could be further from the truth. On the other hand, if you are willing to work, I don't know of much else that you can start with so little money or time and become financially free in so short a time. No, not overnight. But within two to five years if you stick with it and work at it. Cheri PS. I thought chain letters are Ponzi schemes.
+0
Re: Question; Pyramid, chain or legit MLM?
12/8/2005 12:48:22 AM
Hi Cheri; Great, great post. A LOT of good information in there. Thanks! What does "NO front-loading of product" mean? (I'm not familiar with the term) : ) Linda P.S. Chain letters are Ponzi schemes, yes... and a Ponzi is a type/classification of pyramid. There's an analogy I like. When you order pizza, you can get Hawaiian, Pepperoni, Vegetarian, etc. - but they're all pizza. Same thing. There's lots of "flavors" of pyramid schemes. Ponzi is just one of them. lol
+0
Craftie Linda

3649
1349 Posts
1349
Invite Me as a Friend
Person Of The Week
Re: Question; Pyramid, chain or legit MLM?
12/8/2005 3:04:12 AM
Linda Thanks for the invite There are a lot of us at Adland who have never met with your internet words. Can you explain what they are and then we might be able to understand your forums. Linda
+0
Verna ZdarskiKeeble

525
142 Posts
142
Invite Me as a Friend
Re: Question; Pyramid, chain or legit MLM?
12/8/2005 8:17:16 AM
Hi Linda, Thanks for the invite and information. Great Stuff for us that are still learning and are Newbies. In the Home Base Businesses, I have I got invovled personally: One: Because of my health Two: The finanical potential, I guess is there with enough people as members or customers joined purchasing. Personally My Health Is Very Important To Me, Before These Products I My Health Was In Ruff Shape. Check These Out: My About Me Pages, My Personal Testimony Is There For Everyone To View In My Adland Profile & Nutronix Page Profile. http://www.nutronix.com/Bambie http://www.mymangosteen.com/MBgirl Sincerely Thank-you, Verna ZK.
+0


facebook
Like us on Facebook!