On Sunday 16 September 2007, lshumacher wrote:
> Hi everyone,
>
> I have recently gone to a lot of meetings for MLM companies, mostly
> Quixtar and ACN. I was not impressed with what I saw, but I still
> think the MLM system is a very interesting idea.
>
> I see 3 main flaws with the companies out there:
> 1. Sell dubious/overpriced products that people don't really need.
> 2. Make you pay money to join the system.
> 3. Get more money out of you through seminars and training materials.
>
>
> This led me to think I could start a better MLM company. I have been
> in sales for quite a few years, and I think I could do it. I wanted
> to get the opinion of this group, because I am sure you are already
> very critical of MLM systems.
>
> What if I started a company that had these features:
> 1. $0 to join
> 2. Sold products already in demand: electronics, mp3 players,
> cellular phone service, maybe name-brand clothing, etc.
> 3. didn't require you to buy any products if you don't want to.
> 4. had the traditional MLM system payout, maybe 5 levels or even
> more.
>
> What do you think, could this work, or is MLM just a bad idea?
Why should I buy a product from an MLM when I can get it at a store that
I know takes returns or online for cheap?
Another is that with any number of levels, you still tend to have more
middlemen that are getting paid that are not adding value. That's one
big argument from Quackstar: We don't have the middleman. Actually,
they do, and they also have everyone in the upline getting their cut,
which means more money going to more people who do nothing to add value
to the product.
I think it's possible to build an ethical and working MLM. Deb has
proof of that, but one major point is that it wasn't designed as a full
time job to give one "freedom," but as a way to make part a few dollars
part time.
Hal
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