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Originally Posted by hatchtastic
This industry is no different from that except you just don't earn a paycheck.
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I would say this statement is true.
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based on Mona Vie's own 2007 income disclosure statement "fewer than 1 percent qualified for commissions and of those, only 10 percent made more than $100 a week."
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MonaVie Acai Juice: Cure-All or Marketing Scheme? - Newsweek and The Daily Beast
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While earning potential varies by company and sales ability, DSA says the median annual income for those in direct sales is $2,400.
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USATODAY.com
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It can be very difficult, if not impossible, for most individuals to make a lot of money through the direct sale of products to consumers. And big money is what recruiters often allude to in their pitches."
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Roland Whitsell, a former business professor who spent 40 years researching and teaching the pitfalls of multilevel marketing": "You'd be hard-pressed to find anyone making over $1.50 an hour, (t)he primary product is opportunity. The strongest, most powerful motivational force today is false hope."
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Multilevel marketing or 'pyramid?' Sales people find it hard to earn much - USATODAY.com
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Originally Posted by hatchtastic
It is also not about selling a product.
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Which is why it is a scam. Anything that survives on recruiting more people is a pyramid scheme. If the people dry up the revenue dries up. Any legitimate business should be able to achieve homeostasis.
Pyramid scheme - Wikipedia, the free encyclopedia
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Originally Posted by hatchtastic
The job of a distributor is simply to collect a decision by providing enough information about the company, the product(s) and the compensation plan for people to do so.
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Distributor? Do you mean the person interested in the "job"?
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Originally Posted by hatchtastic
These companies have been trying to re-invent the wheel and in turn completely left out the basics. Instead of giving people the necessary information that they need to make an educated decision all they are doing is trying to hype people up and get people to join off of emotion rather than knowledge.
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This is what con men do. Get you to get invested based on emotion not logic.
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Originally Posted by hatchtastic
In order to build a large organization you have to have a process that your average Joe can duplicate. If you don't your business as an individual will fail very quickly. The majority of presentations are not done in this way, especially the one that you described. What ends up happening with that is in order for you do be successful at all you would continuously have to sponsor people, and you will end up with a bunch of people that are not active or dropped out like you did before because they cannot duplicate the process.
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Which it is why it is a pyramid scheme.
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Originally Posted by hatchtastic
What I'm getting at is there are ways for virtually anyone to be be successful in network marketing, you just have to get involved with the right people that can teach you the right things to do.
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There are good MLMs that actually focus on selling products. The products serve a purpose.
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Learn More About the Company
Find — and study — the company’s track record. Do an internet search with the name of the company and words like review, scam, or complaint. Look through several pages of search results. You also may want to look for articles about the company in newspapers, magazines, or online. Find out:
how long the company has been in business
whether it has a positive reputation for customer satisfaction
what the buzz is about the company and its product on blogs and websites
whether the company has been sued for deceptive business practices
Check with your state Attorney General for complaints about any company you’re considering, although a lack of complaints doesn’t guarantee that a company is legitimate.
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Evaluate the Plan
Don’t pay or sign a contract in an “opportunity meeting.” Take your time to think over your decision. Your investment requires real money, so don’t rush into it without doing some research first.
Ask your sponsor for the terms and conditions of the plan, including:
the compensation structure
your potential expenses
support for claims about how much money you can make
the name and contact information of someone at the company who can answer your questions
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Ask Questions
Ask your sponsor and other distributors tough questions, and dig for details. Don’t consider it nosy or intrusive: you are on a mission to check out a potential business deal that will require your money and your time.
Their responses can help you detect false claims about the amount of money you may make and whether the business is a pyramid scheme. Here are some questions to ask before making any decisions:
How many people have you recruited?
How long have you been in the business?
How much time did you spend last year on the business?
How much money did you make last year — that is, your income and bonuses, less your expenses?
What were your expenses last year, including money you spent on training and buying products?
What percentage of your sales were made to distributors?
How much product did you sell to distributors?
What are your annual sales of the product?
What percentage of the money you’ve made — income and bonuses less your expenses — came from recruiting other distributors and selling them inventory or other items to get started?
It’s important to get a complete picture of how the plan works: not just how much money distributors make, but also how much time and money they spend on the plan, how long it takes before they’re earning money, and how big a downline is needed to make money. One sign of a pyramid scheme is if distributors sell more product to other distributors than to the public — or if they make more money from recruiting than they do from selling.
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Multilevel Marketing | BCP Business Center