MLM Pyramid Scheme Video Exposes Truths

Discussion in 'Network/Multi-level Marketing' started by FreeCashMan, Dec 21, 2010.

  1. FreeCashMan

    FreeCashMan Well-Known Member

    This short comedic style video on mlm and the ideal of them being pyramid schemes, so stay away, is worth watching, especially, if you are one that is being told to stay away from mlm - network marketing (but keep doing that job you don't like or isn't paying you enough):

    http://www.youtube.com/watch?v=Wf4kn8gQ9ow

    All the best and much success.
     
  2. Just2EZ

    Just2EZ Moderator

    That video was so lame, but the message so true. lol
    I'd rather stick thumbtacks in my eyes than watch it again.
    Gee, I was the 4th viewer. Did you just post it?
     
  3. weebitty

    weebitty Member

    I have seen that video myself and thought it was very true just like you said. It maybe lame too. But I think all in all it gets the point across how some people think. I think I have run across a few of those people [​IMG]
     
  4. dougadam

    dougadam New Member

    Pyramid or pyramid scheme. Just because a company's organizational structure resembles a pyramid does not mean it is a pyramid scheme.
     
  5. talfighel

    talfighel Silver Member

    The message there was very good.

    If you want to be successful and rich in life, find a good mentor in this business and listen to them.

    If you want to be a failure, work at a job for the rest of your life, and have no money each and every month then listen and take advice from BROKE people.


    Tal
     
  6. treevee

    treevee Member

    MLM businesses have always appealed to me. I've been in 4 of them and haven't had any success, though. I guess I'm not a good salesperson even though most of the products could have sold themselves. Everyone around me has such a negative view of them!
     
  7. talfighel

    talfighel Silver Member

    treevee: MLM businesses have always appealed to me. I've been in 4 of them and haven't had any success, though. I guess I'm not a good salesperson even though most of the products could have sold themselves. Everyone around me has such a negative view of them!
    You need to find one and stick with it. You can make millions of mistakes with your ONE program and on the million and 1 tries, you can become very very successful but you can not succeed if you jump from one program to another.

    This is the mistake that too many make.
     
  8. treevee

    treevee Member

    talfighel: You need to find one and stick with it. You can make millions of mistakes with your ONE program and on the million and 1 tries, you can become very very successful but you can not succeed if you jump from one program to another.
    Tal,
    I think it's safe to say that 1 1/2 - 2 years with each of the last 2 companies and being "in the red" a few hundred dollars is ample time and reason to discern that it isn't working. [​IMG]

    Seriously though, I believe that with the use of the internet, it can be a lot different and more rewarding. I just wish that I knew then what I know now about marketing that way!

    Furthermore, I'd be ecstatic to find a good MLM to join that I totally believe in the product. However, if you haven't the money to invest (which is needed monthly for a legit MLM biz and which is the case for me today), it won't work.
     
  9. FreeCashMan

    FreeCashMan Well-Known Member

    Why is it that people think that a great product equals great success in network marketing. There's nothing to support this, in fact, history says otherwise.

    I just spoke to a guy that called me and tried to sell me on his food company business based on everyone eats food. When I asked him what does it take to earn $1,000 (minus bonus games) in monthly residual he couldn't give me a answer.

    Compensation plans drive success. There are way to many business persons without a great product succeeding and making money, because business is about making money.

    I'll make the money in a great compensation plan and good company, and buy the products (food in the above example) directly from the companies that don't have one.

    A company with a great product one likes doesn't mean one needs to do business with the company on an account of some great product.

    Once you are set up with a great compensation plan then it all comes down to learn and applying marketing techniques for success, and consistently doing it.
     
  10. treevee

    treevee Member

    Well, FCM, that's just me! With a legit MLM biz, you as an associate need to personally purchase the products monthly. I'm not going to buy stuff that I don't like every single month. If an opportunity comes along where I can use the products, like the products for personal use and it has a great biz op, I may sign on. To sell to warm market, I would like to have had good experiences with using the products also. Working on my personal marketing strategies will follow soon afterward.
     
  11. treevee: Well, FCM, that's just me! With a legit MLM biz, you as an associate need to personally purchase the products monthly. I'm not going to buy stuff that I don't like every single month. If an opportunity comes along where I can use the products, like the products for personal use and it has a great biz op, I may sign on. To sell to warm market, I would like to have had good experiences with using the products also. Working on my personal marketing strategies will follow soon afterward.
    Agreed,

    Although I have researched thousands of businesses, and even more products and services, I can see why some feel it is all about the compensation plan, not the products or services. Obviously, there are so few which offer value, as in, saving the average person money, and which appeal to the masses, that is is no wonder some feel pumping the money is the way to go.

    No doubt, most are money motivated, and depending on your list, you can succeed with a money deal, but how many really last, especially those with no value, just the lure of money. Pushing the money only limits your customer base since most fail at money deals, and although I have seen short term success with these programs, none survive.

    So just as was stated by FCM, there is no history on great product MLM's succeeding, what do you call Amway, Herbalife, Shaklee, Watkins, Avon, MaryKay and dozens of others? They all have great products, and have been in business for decades, if not 50+ years, so I call that history. Granted, when it comes to value, I wouldn't suggest any of the above, but good products at a higher price is consistent with these examples.

    When you use the everyone eats pitch, very true, and if a company offered true verifiable value on high quality foods, then I will take a company based on this equation over the hype of money alone which most fail to duplicate unless they have a large list or base to promote deal to. For the newbies, pumping money games is not going to lead to any success, and I have seen this to be true for decades of money games, so there is a history here as well, a history of failure. Name one money game that lasts for more than a couple years, if lucky.

    There are some new concepts which combine both, but very few. If you can add value and saving money, plus a larger than usual income opportunity, now you have found the secret formula I had recently found, so they do exist, just far and few between, are rare as hens teeth. lol Too bad we are unable to post about it online at this pre-launch beta testing stage, but wow, six figures has never been easier or more long term, and it is all based on extreme value of service and products, not driven on the money alone, the perfect combination in my opinion and experience.

    Success to all,
     
  12. FreeCashMan

    FreeCashMan Well-Known Member

    My point is, and the historical facts of mlm support this, that thinking that the having a fantastic product/service is the key to creating a good income in mlm is a fallacy. More average and ordinary people have not been able to be successful because they has the latest and greatest, juice, lotion, potion, vitamin, gadget or gizmo.

    Most mlm's with that supposedly great products want you to stock up on product in excess of what you need in order to qualify for maximum commissions.

    So I distinguish between money games, whatever oppty may be seen as such, to understanding that those who keep trying to pursue a network marketing company with the "best" product in order dictate their success will very often be in a continual chase for greatness and income. Problem is most continue to do so because they don't understand compensation plans.

    When someone approaches you about a biz, ask them what does it take to make $1000 in actual monthly residual income, not bonus come and go money. The masses couldn't tell you or show you in the comp plan. Therefore they remain victims to "a great product" is the driving force to great money, when there is no history to support this.

    Those top mlm companies you named the mass of their participants don't make $1000 a month, because when it comes to the network that needs to be in place to do that, the rep simple doesn't have a fair chance to do that, so the rep tries to be a store for the company in hopes of making that money monthly. May as well stick to affiliate marketing in that case because that defeats the purpose of network marketing.

    I've come to one conclusion, that I haven't seen anyone counter the sense of it, mlm is about making money with a network, not being a store for the company, and with the plethora of opportunities out there these days, most with sub par comp plans, having an opportunity that is internet based that will take a few team members as possible to create a nice $1000 or more monthly, but does not limit your income potential by design, is more important than how great the product is, that requires a team of thousands to make 4-5 figures in monthly residual income.

    Those that chase the nicest of products with the comp plan that requires thousands to make good money, simple position nearly all that join them, including themselves, without a fair chance to succeed in creating at least a 4-figure monthly residual income.

    Internet based product distribution, small team, diversified income stream, with the same network equals a fortune for the average and ordinary person in mlm that is being ask to put in the same effort for one company to HOPEFULLY and Prayfully establish a huge team to make good money.
     
  13. Good points,

    I don't diagree that most do not make even a $1000. per month in any of the long term MLM programs, but many do, in fact, thousands make much more than the $1000. per month, I do, and I do not even work it any longer. What my issue was is simple, that you stated there were no accurate historical facts when there are. Many public companies list their distributors average income, and with a little math, you can define thousands who are making way in excess of $1000. a month by level of achievement.

    Granted, it won't happen fast for most, but my other point is that there is no history of long term success of making $1000. a month in any money focused programs, just name one, one that has produced for more than a couple years as example. Personally, I don't know of any, and I have researched them all over the years. Sure, some will knock down $1000. a month faster just due to the fact there is no real product, hence, no spread to worry about as with real products or services.

    I look for a good balance, good long term and good short term income opportunities in my portfolio. I am not against a money program, I just know none last that long. The only way to succeed in this ever more difficult industry is to be diversified. I am not strickly an MLM advocate, but I still believe when all is said and done, products and services of value rule in the long term, those money games that grow fast never last, but yes, you can make money with them and I hope you are one of those who are. lol

    Success to all,
     
  14. FreeCashMan

    FreeCashMan Well-Known Member

    I don't think I will be one making money in a money game, not playing, lol. Been there though, but now focused on long term walk away residual income building.

    Yes there are people making $1K a month and more, but in the 50 years of the existence of network marketing, there are not more of those that have participated and put in the work making $1k a month. It doesn't matter if you combined a money game or one of the long term mlm. The people that have put in the work and establish a team of sorts simple can't win with the typical structured comp plans of most mlm's.

    Yes, now that the FTC has those companies required to expose the true numbers of the money being earned by the reps, the proof of what I'm saying is in that exposure. The masses aren't winning with the "great product" company, and they simply never will. They may have fun with it as a hobby but sustainable monthly residual income. There's no fair chance for one to win, and it doesn't have to be fast, but it can't take too long either. Heck that's not what we get in business for, to wait to make a profit forever.

    My point is it just simply doesn't take a great product but a product/service that is basic and has some consumable aspect. Walmart is not a great company worldwide because they have a great product that defines them. The Dollar stores: Family Dollar, Dollar General, aren't all over the place making money because they have great products, and heck don't even know if they sell stuff for a $1 anymore. McDonald's isn't the number one restaurant because they serve the best food.

    Those companies, and similar, are winning and leading in their business category because they have a business model for distribution that is profitable. Likewise, most mlm's that are long term, as you noted, are still surviving but its from being stores via the reps, not because of the comp plan business model that would drive people to earn income with them.

    As with the money game "businesses" they aren't surviving because they tend to be a game of similar to the general mlm, no good monthly residual income unless you have a huge team, but you can stock up on referral bonuses if you are a good recruiter.

    Or you have the one-time pay cycle hocus pocus make money "forever" biz, like we just witnessed with MPB Today (not picking on them they are just the most recent in a line of strong surge biz opty that dies out because people don't understand comp plans but the truth soon evolves). These conceivable, or perceived, money games biz simple can't last by design of the comp plan and the perception of residual income that people think they get from a one-time pay.

    Online digital distribution and membership model appears to be the powerful income wave of the future in mlm. And those companies that can put a powerful effective comp plan in place that can produce for average and ordinary people that go to work can last indefinitely. That's the only "game" I'm looking to play because when I recommend others play, I know they have fair chance to make 4-5 figures monthly as they desire. And I've wised up to focus on diversified income streams which is why Trifecta Cashflow System was created. I was once nuts, to focus on trying to do it all with one company.

    I'll make the money and buy all the "best products" I want from the specialty stores, I mean mlm reps, that have them. ( Just a little joke, don't get mad if you are in an mlm with a special product).

    Home Business is about MAKING MONEY!
     

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