Multi Level Marketing and Network Marketing explained - vital information for the potential new MLM recruit.
ARTICLE SERIES: The Dynamics of an MLM Distributorship.
Q: What exactly is it that makes MLM dishonest?
A: To coin a phrase, it's the "MLM Duty of Non-Disclosure".
Want to buy into a business? Try this ad for size: "Work from Home. Earn $2,500 - $10,000 PM PT/FT Call Elmo on .... or visit http://www..."
Sound good? Would you call or visit? Fact is, this is one of the most successful MLM recruiting ads of all time, widely used by Herbalife company distributors. Tells you nothing. Appeals to your financial situation. Just like many others.
You call or go to the website. You get success stories. Your interest is piqued. You pay a few dollars and you get the "complete" story sent to you or you get a password so you can access it on the internet. The promise is that you will get "...sufficient information for you to make a fully informed decision".
Actually, you will get more - more success stories and a fair bit of seemingly useful additional stuff. The presentation is impressive. Just pay your money and you too can have a website just like the one you're using to get this information. But there's some stuff you won't get that might be important to you.
For instance, you won't get information about:
How many others have already got websites exactly like yours.
(How many other distributors are there in this particular downline group?)
How many other different websites are out there promoting the same business and products.
(How many distributors in TOTAL are working my MLM's business?)
How many different websites are there out there promoting SIMILAR businesses and products.
(How many MLM people are working in my INDUSTRY?)
How much each website owner is currently earning.
(What does the average part time distributor make? $2,500 per month, like it says in the ad?)
How your own recruiting efforts will cause MORE websites to exist in competition with your own.
(Is it true that my own recruits become my own competition?)
How many past website owners are no longer in the business.
(What is the failure rate of distributors?)
These questions relate to the competition you will experience when you begin operating your MLM business. (Beware of huge success. It means you have created huge competition for yourself). You will get no meaningful answers to these questions. You will be distracted from the truth, which is that no-one has a true, up-to-date answer to any of them. Not your sponsor, not your upline, and in most cases, not even the MLM company involved.
By deliberately with-holding and keeping secret all distributor data, MLM companies prevent new distributors from properly evaluating their own potential as MLM distributors. That's why MLM advertising is predominantly aimed at non-business people - the average worker if you like. Astute business people know enough to ask these questions. The average worker does not.
Smart, determined people who have an in-depth understanding of what all this means are miles ahead of the game. They can go far. It's true too, that ordinary people with an extraordinary work ethic and a good product might (and have, with the right guidance from a smart person), achieved extraordinary wealth. But in both cases it can only be at the expense of others.
MLM's "duty of non-disclosure" of vital business information, (meaning that even if you are desirous of passing this information on, you can't), is what makes MLM inherently dishonest at its core. Because this information is damning to MLM, it is not released. The companies involved will tell you that this information is not released for other reasons, but because it is not available, people must prevaricate to cover its absence when they are queried on it.
MLM makes dishonest people out of honest people and gives the scamster a very fertile patch to work on.
Webmasters: Content for Your Site and Newsletters
Feel free to use the above article on your website
or in your publications. You are required to include
the following 'resource information' and website link
with each use.
“Article by Peter A Blood, author of the ‘The MLM
File’, an authoritative guide to avoiding the pitfalls
inherent in the MLM marketing concept.