I recommend listening to The Dream podcast (season 1) and do some deeper research into MLMs by checking out rep earnings reports on popular MLMs, Jon M. Taylor's research, William Keep's research, FTC documents and lawsuits against notable MLMs (like Herbalife and Advocare), and the AARP study on MLMs. The AARP study showed 99% of reps i…
I recommend listening to The Dream podcast (season 1) and do some deeper research into MLMs by checking out rep earnings reports on popular MLMs, Jon M. Taylor's research, William Keep's research, FTC documents and lawsuits against notable MLMs (like Herbalife and Advocare), and the AARP study on MLMs. The AARP study showed 99% of reps in ANY MLM don't break even, and actually lose money, even if they are joining to make money and work pretty hard at it. Not to mention the often illegal tactics used by many uplines. TruthInAdvertising.org found that 98% of MLMs were using deceptive earnings claims to recruit new reps. Comparing profitability, dropshipping is probably better than any MLM.
I have been in the MLM profession for 30 years. Your sources start with the flawed premise that people join an MLM to make money. Most people join because they can then buy the products at a discount. It would be the same as saying people join Costco and they actually spend money. In my 30 years of experience, the people who come in to make money and consistently work hard, do well- just like any business. Perhaps read the most recent lawsuit Nerium vs FTC- FTC lost badly with the same talking points you have used.
If you do some actual research into the Herbal life lawsuit- you would learn it was initiated to short the stock.
Quite a few people do join MLMs to make an extra income, that's how it's sold to people very often. "Make extra money", "get out of debt", "support your family". But very few actually make money according to multiple studies done across a spectrum of MLM types. If people are joining to get a discount, it's likely because MLMs seriously over-inflate their prices to begin with, the "discount" is what retail price should be. And there are other and better companies they can buy from at better prices. Shakeology is an example of over-inflated pricing, $130 for 30 servings of a shake powder when comparable products are available at better pricing and no middle man.
Have you done an profit analysis on your own work in MLMs? Are you making money profit? Even if you are doing it for fun, have you calculated whether you're losing money in an MLM?
The Herbalife lawsuit was not about stock, it was about making false promises made to new recruits about income potential. The Truth in Advertising study that I mentioned earlier found that pretty much all (98%) of MLMs use deceptive income claims to recruit people, so it's not just Herbalife that's doing that.
With regard to the Nerium vs FTC lawsuit, the FTC did not win it's case, but the judge would not reward Nerium with any coverage of legal fees because they determined that the FTC's case was within reason. There are very specific rules an MLM must abide by in order to not be considered a pyramid scheme, and the FTC failed to provide enough evidence to prove that Nerium was a pyramid scheme. But Nerium is still operating an MLM which numerous studies have shown is not a good business model.
From the judge's opinion on Nerium (Neora's) request for coverage of legal fees: "Considering the totality of the circumstances, the Court concludes that the FTC’s position was substantially justified, and does not reach the parties’ remaining arguments....In doing so, Neora discounts and downplays the legitimate and substantial disputes presented by the parties throughout this case’s lengthy procedural history". The lawsuit brought by the FTC was considered reasonable (not a frivolous/unfounded lawsuit), the FTC probably didn't gather enough evidence to support their legal claims about Nerium.
Over the last 30 years I have built a substantial business in MLM. When I found myself a single mother of 3 young children without any financial support, it allowed me to not become a swingle mother statistic and be financially independent. I was also able to be present and support my family including paying private school tuition and college. My 3 kids have no college debt- including law school.
MLM is hard work. Gyms are not a scam because the majority of people who join quit when they don’t see instant results and it’s too hard. MLM is no different. I succeeded because I came in already having experience as an entrepreneur, understanding being an entrepreneur means working hard for very little in the beginning. It means giving up something in order to have the consistent time to build the skills necessary to succeed.
I gave up sleep, tv, lots of social things in order to find the time to build my business. Most people are unwilling to make those sacrifices. I dealt with no shows, rejection from family and friends and those naysayers like you who stand on the outside and make sweeping assumptions about a profession that many women depend on.
I know this intimately from the hundreds of people, largely woman, that I have poured blood sweat and tears into helping them build something that would give them the flexibility to be home with their kids. I have helped many become large 6 and 7 figure earners. There are many who had the same opportunity, who liked the benefits of the business but didn’t want to do the work to have those benefits- just like many people want to be toned and fit, but must people are not.
I have helped woman all over the world- including in countries like Iran where opportunity is limited. My company doesn’t do business in Iran, but I have volunteered my time because I know MLM works.
I am not sure why you have such strong negative opinions about something you know so little about? You seem more determined to be right(cherry picking from the Nerium suit) than perhaps be open to the idea there is a lot you don’t understand.
I recommend listening to The Dream podcast (season 1) and do some deeper research into MLMs by checking out rep earnings reports on popular MLMs, Jon M. Taylor's research, William Keep's research, FTC documents and lawsuits against notable MLMs (like Herbalife and Advocare), and the AARP study on MLMs. The AARP study showed 99% of reps in ANY MLM don't break even, and actually lose money, even if they are joining to make money and work pretty hard at it. Not to mention the often illegal tactics used by many uplines. TruthInAdvertising.org found that 98% of MLMs were using deceptive earnings claims to recruit new reps. Comparing profitability, dropshipping is probably better than any MLM.
I have been in the MLM profession for 30 years. Your sources start with the flawed premise that people join an MLM to make money. Most people join because they can then buy the products at a discount. It would be the same as saying people join Costco and they actually spend money. In my 30 years of experience, the people who come in to make money and consistently work hard, do well- just like any business. Perhaps read the most recent lawsuit Nerium vs FTC- FTC lost badly with the same talking points you have used.
If you do some actual research into the Herbal life lawsuit- you would learn it was initiated to short the stock.
Quite a few people do join MLMs to make an extra income, that's how it's sold to people very often. "Make extra money", "get out of debt", "support your family". But very few actually make money according to multiple studies done across a spectrum of MLM types. If people are joining to get a discount, it's likely because MLMs seriously over-inflate their prices to begin with, the "discount" is what retail price should be. And there are other and better companies they can buy from at better prices. Shakeology is an example of over-inflated pricing, $130 for 30 servings of a shake powder when comparable products are available at better pricing and no middle man.
Have you done an profit analysis on your own work in MLMs? Are you making money profit? Even if you are doing it for fun, have you calculated whether you're losing money in an MLM?
The Herbalife lawsuit was not about stock, it was about making false promises made to new recruits about income potential. The Truth in Advertising study that I mentioned earlier found that pretty much all (98%) of MLMs use deceptive income claims to recruit people, so it's not just Herbalife that's doing that.
With regard to the Nerium vs FTC lawsuit, the FTC did not win it's case, but the judge would not reward Nerium with any coverage of legal fees because they determined that the FTC's case was within reason. There are very specific rules an MLM must abide by in order to not be considered a pyramid scheme, and the FTC failed to provide enough evidence to prove that Nerium was a pyramid scheme. But Nerium is still operating an MLM which numerous studies have shown is not a good business model.
From the judge's opinion on Nerium (Neora's) request for coverage of legal fees: "Considering the totality of the circumstances, the Court concludes that the FTC’s position was substantially justified, and does not reach the parties’ remaining arguments....In doing so, Neora discounts and downplays the legitimate and substantial disputes presented by the parties throughout this case’s lengthy procedural history". The lawsuit brought by the FTC was considered reasonable (not a frivolous/unfounded lawsuit), the FTC probably didn't gather enough evidence to support their legal claims about Nerium.
Over the last 30 years I have built a substantial business in MLM. When I found myself a single mother of 3 young children without any financial support, it allowed me to not become a swingle mother statistic and be financially independent. I was also able to be present and support my family including paying private school tuition and college. My 3 kids have no college debt- including law school.
MLM is hard work. Gyms are not a scam because the majority of people who join quit when they don’t see instant results and it’s too hard. MLM is no different. I succeeded because I came in already having experience as an entrepreneur, understanding being an entrepreneur means working hard for very little in the beginning. It means giving up something in order to have the consistent time to build the skills necessary to succeed.
I gave up sleep, tv, lots of social things in order to find the time to build my business. Most people are unwilling to make those sacrifices. I dealt with no shows, rejection from family and friends and those naysayers like you who stand on the outside and make sweeping assumptions about a profession that many women depend on.
I know this intimately from the hundreds of people, largely woman, that I have poured blood sweat and tears into helping them build something that would give them the flexibility to be home with their kids. I have helped many become large 6 and 7 figure earners. There are many who had the same opportunity, who liked the benefits of the business but didn’t want to do the work to have those benefits- just like many people want to be toned and fit, but must people are not.
I have helped woman all over the world- including in countries like Iran where opportunity is limited. My company doesn’t do business in Iran, but I have volunteered my time because I know MLM works.
I am not sure why you have such strong negative opinions about something you know so little about? You seem more determined to be right(cherry picking from the Nerium suit) than perhaps be open to the idea there is a lot you don’t understand.