what do you all think of MLM?

[winnipegjets]

Don't waste your time ...MLM is great as a concept but it has been abused in practice that it has become a scheme for the topline to exploit the underlings. Moreover, there is so much negativity surrounding MLM, that your effort will get rewards elsewhere, like promoting Sam's non-porn website.

 

[kingrant]

MLM started as a marketing tool which proved its worth for companies like Amway which then had a compelling product to sell and you need the reach exponentially to corner the market before competition appears. But if there is no product or it's less than marketable, MLM marketeers turned to "creating sales" by sheer recruiting. And that blew it.

Don't waste your time ...MLM is great as a concept but it has been abused in practice that it has become a scheme for the topline to exploit the underlings. Moreover, there is so much negativity surrounding MLM, that your effort will get rewards elsewhere, like promoting Sam's non-porn website.

 

[Thick Face Black Heart]

MLM started as a marketing tool which proved its worth for companies like Amway which then had a compelling product to sell and you need the reach exponentially to corner the market before competition appears. But if there is no product or it's less than marketable, MLM marketeers turned to "creating sales" by sheer recruiting. And that blew it.

From the company's point of view, the MLM distribution channel is just another sales channel. The company itself may have a traditional sales & marketing team where employees get paid either a fixed salary or on commission basis, or combination of the two.

Problem arises when the company's product is quite fucked up or not innovative enough and the company cannot turn a profit. That's when the directors start to think of starting an MLM channel with the hopes it can generate more sales. They will invite the directors and key shareholders to be the "initial" roots of the channel, and if those chaps believe that the MLM concept will work, they will take up the offer. So in other words, the topline is comprised mainly of company insiders and their close associates.

Let's say a traditional sales rep selling the company product earns a 10-20% commission on the sales price. The company may be so optimistic about the MLM channel that it is now prepared to give 30% to 40% of revenue to the MLM channel as commission. This however does not alter the basic mathematical truth -- that the entire MLM channel can only receive a fraction of total sales revenues at any point in time.

In other words, at any moment in time, the MLM channel as a whole is spending more money paying subscription fees and buying company products than receiving an income stream from the company. So the MLM channel as a whole always loses money at every moment in time that it is operating. It does not matter if the toplines comprising of directors and major shareholders and their families are raking in huge bucks. The entire chain as a whole will always lose money, and those at the bottom of the chain will lose the most money.

 

[winnipegjets]

In other words, at any moment in time, the MLM channel as a whole is spending more money paying subscription fees and buying company products than receiving an income stream from the company. So the MLM channel as a whole always loses money at every moment in time that it is operating. It does not matter if the toplines comprising of directors and major shareholders and their families are raking in huge bucks. The entire chain as a whole will always lose money, and those at the bottom of the chain will lose the most money.

Some toplines setup a company that will provide 'education and training' resources to the downlines. To be part of the 'organization' the downlines will have to participate in those seminars and buy the training material, besides selling and recruiting. The profits from seminars and sales of material go to the company owned by the toplines. So, the toplines have two revenue streams - one from the MLM company and another from the 'training' enterprise.

 

[singham]

with perseverance doesn't always reap you what you deserve.

Bo tio !! You want to make money why afraid of hardwork ? The more hardwork you put in the greater the return is . That is the fun part of doing biz .

 

[singham]

true...but there are good ones vs the bad ones, sunshine empire is an example of evil sect in mlm, i'd think.

Some toplines setup a company that will provide 'education and training' resources to the downlines. To be part of the 'organization' the downlines will have to participate in those seminars and buy the training material, besides selling and recruiting. The profits from seminars and sales of material go to the company owned by the toplines. So, the toplines have two revenue streams - one from the MLM company and another from the 'training' enterprise.

 

[PUNISHER]

with perseverance doesn't always reap you what you deserve.

And what makes you think that MLM can help you make money with perseverance ?

 

[Lord Imperious]

If you have to shell out money first for "training" and "products"... I think the answer is very clear.

 

[laksaboy]

MLM started as a marketing tool which proved its worth for companies like Amway which then had a compelling product to sell and you need the reach exponentially to corner the market before competition appears. But if there is no product or it's less than marketable, MLM marketeers turned to "creating sales" by sheer recruiting. And that blew it.

If the products were that compelling why not sell them through traditional retail channels?


Amway ordered by court to pay compensation to victims
http://pyramidschemealert.org/analy...raud-pays-150-million-wheres-the-ftc-and-doj/

 

[kingrant]

MLM will give the distributor the explosive power (I already said exponential) of marketing that traditional retail outlet models wont. Esp. a product like a health or cosmetic beauty product. By using personal reach, you also provide the servicing needed to make the clients feel special. Traditional outlets where you just rent the retail space and dump the product not fast enough, as direct selling teams dangled with a really good carrot.

If the products were that compelling why not sell them through traditional retail channels?


Amway ordered by court to pay compensation to victims
http://pyramidschemealert.org/analy...raud-pays-150-million-wheres-the-ftc-and-doj/

 

[Qantas]

paiseh to say. i hate mlm regardless of the product and service. too many target friends, relatives and families. sometimr friendship and kinship can get lost because of mlm.

sometime back, fought with my gf over her mlm activites. think i even started a thread before.

knn, mlm really friendship and kinship killer. worst is my room used to be filled with mlm products. luckily no more liaoz.

Doesn't this remind us of what most churches do ala Kong Hee?

 

[Narong Wongwan]

This james phang reminds me of Con Hee........Con Hee lagi best, as he got no tangible 'product' to sell you even.

What happened to NOP? Back then used to know a few drinking chaps from there......all appeared to be doing very well.

 

[laksaboy]

MLM will give the distributor the explosive power (I already said exponential) of marketing that traditional retail outlet models wont. Esp. a product like a health or cosmetic beauty product. By using personal reach, you also provide the servicing needed to make the clients feel special. Traditional outlets where you just rent the retail space and dump the product not fast enough, as direct selling teams dangled with a really good carrot.

Watch the video I had posted in this thread earlier. 'Direct selling' is a misnomer, because there's very little 'selling' of products involved. The bulk of a MLM company's revenue comes from recruitment. It is still a pyramid scheme, despite what MLM apologists say.

 

[winnipegjets]

If the products were that compelling why not sell them through traditional retail channels?


The products are always priced higher ...so, they need personal selling to differentiate the products...if left on the shelf, the products will just collect dust.

 

[winnipegjets]

true...but there are good ones vs the bad ones, sunshine empire is an example of evil sect in mlm, i'd think.

If the downlines are helping you to generate the volume, why should they still have to pay for training and motivational seminars?

 

[mangali]

MLM salesmen are crooks just like second-hand car dealers

 

[singham]

there are successful ones like neu skin, selling cosemetics to women.

If the products were that compelling why not sell them through traditional retail channels?


The products are always priced higher ...so, they need personal selling to differentiate the products...if left on the shelf, the products will just collect dust.

 

[singham]

muahaha... i have deided to give it a shot...no harm trying, who knows i can be the next james phang...haha...

MLM salesmen are crooks just like second-hand car dealers

 

[PUNISHER]

This james phang reminds me of Con Hee........Con Hee lagi best, as he got no tangible 'product' to sell you even.

What happened to NOP? Back then used to know a few drinking chaps from there......all appeared to be doing very well.

NOP company at paya lebar behind the police station have already close shop for years . If I'm not wrong they sell wonder bra , crystal ( knn use special camera to take photo of you if different color of light appears behind you you need to wear different crystal to improve your luck ! ) ...ect .

 

[no_faith]

i was onced a mlm member.
1 table, 3 chairs. you, ur fren, your fren up line.

ask about ur ambition, ur dream. paint very beautiful picture for you
attend presentation, saying who and who, very young, drive a bmw. you can do it too.
ur fren will tell you wan to be ur own boss with little money and you can start our business.
the product u take is cost price instead of going through many hands.
promise you they will help you and they will find people and put under you.

end of day, these things doesnt happen but it change you.

背着良心，踩着你身边的人的背上位