MLM Is It A Scam Or Not by NiceTime

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									Title:
MLM Is It A Scam Or Not?

Word Count:
669

Summary:
The network marketing industry, als
o known as multi level marketing (M
LM), has become one of the major co
ntroversies in the business world.
Both advocates and detractors have
used strong arguments defending the
ir view.

The detractors have condemned MLM a
s a scam because the system falsely
 claims instant riches with less ef
fort based on a “pyramid” marketing
 scheme that expands a business imp
roperly by promoting too much hype
and misleading facts.

They also note that 95%...


Keywords:
mlm, network marketing, residual inc
ome
Article Body:
The network marketing industry, als
o known as multi level marketing (M
LM), has become one of the major co
ntroversies in the business world.
Both advocates and detractors have
used strong arguments defending the
ir view.

The detractors have condemned MLM a
s a scam because the system falsely
 claims instant riches with less ef
fort based on a “pyramid” marketing
 scheme that expands a business imp
roperly by promoting too much hype
and misleading facts.

They also note that 95% of the MLM
business opportunities fail, with s
upporting evidence. There are huge
profits involved only for the top p
erformers and not for the vast majo
rity of the distributors.

The proponents of multi level marke
ting insist that it is one of the b
est business models to create wealt
h without investing large capital a
nd on a short term basis. On the ot
her hand, they also note that it re
quires a lot of effort and it is no
t a ”get rich quick scheme”, pointi
ng out that this approach to market
ing has been taught as a mainstream
 course in universities.

Although it is not common, if ever,
 to find this type of course offici
ally given in Ivy League schools, a
 similar course at the University o
f Illinois at Chicago does exist (h
ttp://www.uic.edu/depts/oee/network
marketing/index.html ).

The proponents of MLM support their
 arguments by claiming that there a
re many cases of people who succeed
ed in the MLM industry with a small
 amount of start-up capital and onl
y by following a specific plan put
forth by the original company. They
 also differentiate the MLM from “p
yramid schemes” because the first c
ontains a product or service with a
 legitimate company which supports it.

On the other hand “pyramid schemes”
 contain no products or services, o
r they include “pseudo products” in
 order to justify the existence of
the “opportunity”
Another argument against MLM is the
 bogus claim of duplication. Nothin
g can be duplicated since every ind
ividual is unique and, under no cir
cumstances, are we all capable of b
ecoming top salesmen or developers
of down-line, i.e. MLM marketers re
cruited as salesman, referred to as
 “independent business owners”. Act
ually, a charismatic salesman in th
e network in this scenario rises in
 the ranks of the pyramid by earnin
g money from these new recruit’s ha
rd work.

The MLM advocates that duplication
is possible only when the marketing
 plan and the tools have been advan
ced by the mother company in order
to be duplicable for the majority o
f the distributors. This implies th
at whenever the mother MLM company
is in a position to provide such a
tool, then ordinary people with lit
tle to none marketing background ca
n copy the marketing techniques and
 tools and promote their MLM opport
unity successfully.

Another downside of MLM is the expl
oitation of our relatives urging th
em to join our MLM opportunity whic
h oftentimes stresses family relati
onships unnecessarily and is consid
ered by many to be a dubious market
ing tactic.

Some proponents may counter that th
ere is no need to beg your relative
s for sales; instead, what you need
 is qualified prospects who are int
erested in your offer. That can be
accomplished by purchased targeted
leads or specific advertising metho
ds.

The list could go on. Maybe not eve
n an exhaustive book would be enoug
h to note all the arguments both si
des deploy. Maybe the problem is th
e conundrum itself, in which we hav
e to choose between demonizing or c
anonizing the MLM industry. Since n
othing can be duplicated, everythin
g boils down to how the individual
marketer presents his material to h
is prospects. Therefore, one can co
nclude the MLM system is good for s
ome and not for others, so there is
 no need to disparage it or support
 it in the first place as a third p
arty observer.
In that way of thinking we will not
 find answers. Only detailed consid
eration of each and every MLM compa
ny would lead to more accurate conc
lusions and that means thorough exa
mination of the products or service
s, the marketing and compensation p
lan, the marketing tools , and of c
ourse the company’s support and bac
kground.

								
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