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Multi Level Marketing and Network Marketing explained - vital information for the potential new MLM recruit.


A Digest of Reader's Comments  














This Reader's comments are representative of a large number of emails I have received.

Please Note: The MLM File can no longer accept Reader Submissions.


About The MLM File - A Conversation about the Usual Stuff


Please note: I have taken the liberty of leaving this email from Chris in its exact form other than interspersing my comments.


Chris: It's always encouraging to see professionally researched information expressed from a purely objective perspective on a website such as this (just kidding).

Peter: It's always nice to talk with someone who can recognise and deal with professional people. I too, am not always greatly enamoured of good manners and I feel quite at home in discussions of this nature.


Chris: Do yourself a favour and read some professional journals on economic trends and popular non-mlm books on finance and industry trends.You may be surprised at what you find.

Peter: Why on earth would I want to do that again? Of course, there may be the odd mis-print that would in some way allow such items to be mis-interpreted as giving some credence or establishing some chance relationship with what happens in MLM, but that would be against all the laws of logic.


Chris: It sounds to me like you've had more of a bad religious experience then a foray into the world of business.

Peter: If you wish to compare MLM to a religion, be my guest.


Chris: A question. In the parallel world of traditional business, how many people do you think become 'millionaires' in relation to the rest of us mere mortals and how many do you think succeed.

Peter: I do not question people's wealth here. I merely question the manner in which a select few became wealthy. It is also interesting that you use the term "parallel" to infer some similarity between MLM and traditional business. If it were a "parallel world", then 99.95% of all "traditional" employees world-wide would be out of a job every two years or less, after having spent their own money to "buy" the job! And without having earned any wages during this time! MLM just isn't the same as the normal "traditional", business world.


Chris: Even if a business appears to be succeeding, what percentage of businesses do think make substantial profit compared to those traditional businesses that barely scrape by.

Peter: Hmmm! Let me guess. I think I am being asked to compare the number of profitable businesses in the "real" world as to those that are not profitable, and compare that result against the number of profitable MLM businesses as to those that are not profitable. I don't think I'll bother, because the answer is entirely irrelevant.


Chris: Also, there is much much more to the concept of 'geometric compression' than the simplistic equation so often misunderstood by many people attracted to networking. I could spend a day on this concept alone from an economic perspective. 'billions of people in your downline!' (lol)

Peter: What is "geometric compression"? Let's be kind and think of it as "geometric progression". (Although I'm quite sure Chris could spend a day on 'geometric compression'. Without a doubt.) I should also comment on the fact that so many people misunderstand how MLM uses geometric progression recruiting schemes. I thought it was the duty of recruiters to ensure that new people DID understand what was happening in the recruiting scheme. Truth is, they simply do not understand it themselves, so how can they explain it adequately? (Correction: SOME distributors DO understand. They are inevitably the wealthy, or soon to be wealthy, distributors. These people will most often DELIBERATELY avoid explaining the facts. Far be it for me to infer that these people might understand ethics, or even think to apply them where money is concerned!)


Chris: The beauty of geometric compression - such a simplistic term, is that you don't need to recruit the population of the universe AT ALL! In fact nowhere near it. What morons perpetuate these ignorant ideas? You're obviously a person who blindly believes and trusts people and what they say. (Only to become bitter and resentful when something doesn't work out).

Peter: I take great trouble to explain the problems associated with geometric progression based recruiting in MLM on this website. No-one disputes that it is not necessary to recruit more than 10, 20, 30, 40 or perhaps 50,000 people in order to make whatever an ambitious MLM operator considers to be a sufficient income. But how do you STOP your downline recruiting? The MLM principle suggests that ALL people who join as distributors do so to make money. Would the last people in be happy to sit around in the sunshine and make no money while the top man makes millions? Obviously not. And if they did, then the top man would soon stop making money, wouldn't he? Geometric progression recruitment is a fact. It works only to cause the "churning" of distributors, 99.95% of whom disappear (fail) from the average MLM structure every couple of years or so. Without constant recruitment MLM cannot exist. Because of it, perhaps hundreds of millions of people have lost billions of dollars over the last 50 years or more. (Moron? Me? Yes! Because I joined 5 of them without giving due thought). There is a difference between being blindly trustful and being cautiously optimistic. Bitter and resentful? Only when I'm confronted with emotional, factually unsupported opinion suggesting that facts may be disregarded in any meaningful discussion on MLM.


Chris: Some advise. From a non-mlm perspective about success in either traditional business or network marketing ventures NEVER make emotive based decisions.

Peter: The only emotive decisions I made about MLM was made when I JOINED them! I did so because I was asked by friends whom I liked and respected. There was no emotion when I left them, simply indifference, apart from my last sojourn, when (after some disappointment) I became quite excited as I discovered for myself that the system was logically inherently corrupt in principle. I am very impressed, Chris, with your passion, your very emotion, as you wrestle with your MLM problem. The problem you have, of course, is an absolute inability to justify your OPINIONS with logic. You might take the time to count the facts in your email. There aren't any. Just misguided, emotionally based opinions. But thank you for your advice.


Chris: Use logic and reason, in other words, common sense when investigating MLM business opps. MLM works!!

Peter: I could hardly do anything else but agree. But please apply logic and reason to FACTS, not opinions. It is very true though, that UNLESS you use OPINIONS instead of FACTS, you will never get to participate in that great MLM Hall of Fame lifestyle. If you can successfully justify WHY MLM works and is allowed to continue working, you might be able to get a job defending them in their many court cases.


Chris: It's only a model. It's the many ignorant fools that aren't able to think for themselves that often get burnt.

Peter: It's only a model? Wow! A mega multi-billion dollar model, mostly paid for by "failed" entrepreneurs! And, of course, the "unwitting" recruiter isn't to be held responsible for attracting these many fools and their money to the business? This process is called nasty names in some legal quarters.


Chris: There is absolutely nothing unethical about network marketing.

Peter: But there is something unethical about saying that there is nothing unethical about MLM. It might make people think that there's nothing unethical about how some of the principles used in MLM marketing structures are applied.


Chris: There are a multitude of intelligent, successful and world renowned non-mlm professionals who will testify to that fact.

Peter: There are also hundreds of millions of otherwise quite normal people (your "fools"), who would disagree with every one of them. These professionals, by the way, are they the people who have an opinion because they are paid to have an opinion? Or are they people who have an opinion because they have never been in MLM and don't know what they are talking about? Neither can be considered as a reliable source for impartial information. As to truly impartial advocates, I have yet to hear of a single one. (By the way, "There is nothing unethical about network marketing" is an unproveable opinion, not a fact. The facts, which are readily available to those who would bother to look, repudiate this opinion).


Chris: I will only ever listen to or take advise from those who are truly and ethically successful, applying proven and sound strategies and principles THAT WORK FOR WHOEVER CHOOSES TO APPLY AND COMMIT TO THEM!

Peter: Then you have quite some research to do to find what you seek! When you come up with someone who fits your description, please let me know about him/her. I would travel to the ends of the Earth just to meet them. There are some people in the Vatican who might also be interested.


Chris: I'm interested in hearing some feedback if you don't mind.

Peter: You got it!


Chris




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