Monday, October 12, 2015

Why MLM is a SCAM



There are very successful MLMs out there like May-Kay and Amway. But they are only big, because millions of people got duped into joining somebody's downline and the top earners got rich. With every piece of MLM, you have what is called the "end user". They are told by existing reps that they will be running their own business. The person signs up under somebody, but isn't told about the monthly fees for membership and the services they must buy from the company to run their business. Many of the products and services sold by MLMs have high profit margin. The newest fad with MLM is "lifestyle marketing". These MLM recruitment videos are all over the Internet. Some guy in a fancy car with a big house, flashing cash, saying you can have what they have if you work hard enough. And if you failed, you're a loser. Most people know that they've been scammed, but are embarrassed and try to make the scheme work just to make their money back. 5Linx, Hebralife, Vemma, Legal Shield, Motor Club of America, Paycation, Infinity Downline, Disrupt Worldwide, all follow the same business model: a product-based pyramid scheme. The reason these businesses are schemes is there is a math trick involved. Let's say you join 5Linx. Then you have to recruit five more people. They each recruit five. Get out a calculator and start multiplying 5 x 5. 25 x 5. And so on. You can only go about 10 levels more. Because by then, you will have passed the population fo the earth. That's why these MLM companies are scams. A piece of advice for anybody who wants to get into MLM: the best scheme to be a part of is one you help start.

2 comments:

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  2. Hey I would like some more info on Legal Shield email me waldo180@hotmail.com

    ReplyDelete