Dear MLM Survivors
I have read over with some astonishment the tales of pain and
deception from those of you who are "MLM Survivors".
I would welcome any advice you may be willing to share.
HERE IS MY QUESTION:
Is it possible for the right product/service to be sold with MLM
incentives in place and NOT BE EVIL? Or does the MLM structure just
bring out the evil in everyone invovled since the incentive is to
simply recruit more fresh bodies and not really service the END
CUSTOMERS with great service?
THE REASON I ASK:
I am starting a business that involves direct sales of both niche
products and, more importantly, services, to homeowners.
MLM seems to offer a couple of key benefits to a COMPANY, such as not
having to hire and pay a bunch of $75,000/yr regional managers nor
paying a HQ team to market to and recruite distributors/
In theory MLM structure gives people (at least the early people) a
chance to have an ongoing stream of income from the sales of the
people whom they both bring into the organizaiton and coach and
manage and who actually succeed.
NO I AM NOT RECRUITING..
Other options include:
A) a Franchise structure, but that invovles consultants having to
pay at least 15,000 upfront to help cover the large costs associated
with the very legal Franchise process, and of course, a $100 starter
kit is a much lower barrier than a $15,000 + franchise fee...
B) A simple distributor agreement where people get their, say, 40%
markeup or more on the product/service, but dont have any real
financial incentive to help recruit or manage others in their
city/town
So are there any MLM organizations that are not evil..or is it an
unavoidable outgrowth of the Upline/Downline structure, which just
gets magnified if the company is selling some crappy product that
people dont need or could buy a substitute at Wal-Mart for 50% less
anyway...
PJ New York, NY
============
Yes, I have seen this defination in the FILES section of this Yahoo
Group...
Simply removing the payment based on the sale of your downline would
turn a concept from MLM to just direct sales thru distributors.
<SNIP>
FTC et al v Equinox International Corp et al "Multi-level marketing
program" means any marketing program in which participants pay money
to the program promoter in return for which the participants obtain
the right to:
Recruit additional participants, or have additional participants
placed by the promoter or any other person into the program
participant'
similar grouping;
Sell goods or services; and
Receive payment or other compensation, in whole or in part, based
upon the sales of those in the participant'
cooperative, income centre or similar program grouping
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