Multilevel Marketing

[Formerly Rockymtnole]

Does anyone know anybody that's made any money at all in these things?

I have two relatives (husband and wife) that are knee-deep in Amway. They call themselves "independent business owners" but never actually say Amway directly, spend a ton on their own products under the justification that they're "buying from themselves," they spend almost every waking hour trying to sign people up underneath them, pay big money for weekend conferences and motivational tapes, and parrot stupidity about "breaking the alarm clock" and "a lifetime of passive income" etc etc etc.

They used to be ok to hang around with but now it's just major holidays. They know better than to hit us up but I just can't take that brainwashed mentality.

Sound familiar to anyone?

 

[TennNole17]

My FB feed is filled with stay at home moms promoting various workout programs, shakes, etc.

 

[RunRonnieRun]

A friend of mine from high school got into Jamberry really early. Like first 50 people. She makes $500k+ via those little fingernail things. Her husband retired. They moved back to our hometown and paid cash for a huge house.

Another 50 girls from my high school tried to catch her lightning in a bottle and failed, but she’s one of the success stories.

 

[bigloum]

A friend of mine does Thrive. Both her and her husband quit their jobs and seem to be doing well.

 

[Noleguy06]

The 1% do well. Everyone else is annoying.

 

[itsjustme0770]

I like suing them. Ponzi schemes are illegal.

 

[seminole97]

I like suing them. Ponzi schemes are illegal.

How are these Ponzi schemes?
A Ponzi is when person A invests, but instead of being paid by the earnings on the investment he is paid from the capital he and subsequent investors (B, C, and so on) invest.
I get why that is illegal because it involves defrauding the investors regarding what is actually happening to the capital. So long as the con can prevent too many withdrawals the scam can go on.

But why are multilevel marketing/pyramid schemes illegal? They’re being given the opportunity to buy stuff and then have the onus to resell it. Where is the fraud in that model?

 

[KitingHigh]

How are these Ponzi schemes?
A Ponzi is when person A invests, but instead of being paid by the earnings on the investment he is paid from the capital he and subsequent investors (B, C, and so on) invest.
I get why that is illegal because it involves defrauding the investors regarding what is actually happening to the capital. So long as the con can prevent too many withdrawals the scam can go on.

But why are multilevel marketing/pyramid schemes illegal? They’re being given the opportunity to buy stuff and then have the onus to resell it. Where is the fraud in that model?

That's not really how they work. The people invest (by buying product) and then make their money on people they convince to buy into the system as well. It's exactly like a Ponzi scheme and the products are used mostly to create a loophole in the laws. The money is made primarily from getting new marketers below your level, it does vary some by company, and I'm sure some are better than others, but typically the only people that make money are those that get in early and are at the top levels, just like a Ponzi scheme.

 

[itsjustme0770]

That's not really how they work. The people invest (by buying product) and then make their money on people they convince to buy into the system as well. It's exactly like a Ponzi scheme and the products are used mostly to create a loophole in the laws. The money is made primarily from getting new marketers below your level, it does vary some by company, and I'm sure some are better than others, but typically the only people that make money are those that get in early and are at the top levels, just like a Ponzi scheme.

Pretty much this.

Courtrooms are littered with the corpses of multilevel marketing scams. Lots of examples
Out there.

 

[mcgrawfsu]

A guy I used to work with and made north of $300k a few years in a row walked in one day and resigned. Everyone was confused as his accounts were pretty easy. He told us he was going to be a stay at home dad and his wife worked for Mona Vie. She made $30k/week and they were leaving for a 2week paid trip to Hawaii. And they were also given matching S series Mercedes.

I have a friend who started another and is doing very well since he started the company. He says the Asian markets are huge for this. Spends about half the year overseas.

 

[RTM58]

I have a friend who started another and is doing very well since he started the company. He says the Asian markets are huge for this. Spends about half the year overseas.

Might be something to look into when I go wife shopping. Thanks!

 

[mcgrawfsu]

Might be something to look into when I go wife shopping. Thanks!

I’m quite sure he has a mistress(s) in Japan and probably a couple other countries. Heck, he probably has one or two here in FL.

He does these presentations in Asia in front of thousands of people. From the pictures it looks like a small concert. There has to be some groupies

 

[LesClaypool]

The proper term is pyramid scheme.

And if you haven't had the misfortune of seeing your "friends" sell Rodan & Fields, you're missing out on some of the biggest a-holes on the Internet.

 

[Nolomite]

I know a former Administrative Assistant in the FL Governor's office that made a lot of money over a lot of years selling Avon - no tricks, just consistently excellent customer service. After 30+ years of good times and well-supplemented income, she turned over her territory and her customer list to her granddaughter, a hairdresser who had every asset and opportunity needed to continue the success. But the granddaughter found it boring and walked away.

So, to answer the OPs question, "yes".

 

[KitingHigh]

The proper term is pyramid scheme.

And if you haven't had the misfortune of seeing your "friends" sell Rodan & Fields, you're missing out on some of the biggest a-holes on the Internet.

Anything like this?

 

[GwinnettNole]

A former friend of mine got sucked into Herbal Life 15 years ago and tried to get us to join... our friendship ended.. we never joined.

These pyramids are the biggest crock. If there is one thing I teach my kids is never join Amway, Dotara (sp?), Herbal Life etc.

Scam central...

 

[RangerNole]

My wife knows several people/couples that made big time money (meaning they live a good life off of the MLM thing). IMO you can make money, the biggest thing is to get in early, work really hard, not have any issues running through your entire life contact list and not mind losing some friends and family along the way. Probably the hardest thing is you have to really bust your hump while you still have your job that pays the bills.

 

[runkpanole]

The proper term is pyramid scheme.

And if you haven't had the misfortune of seeing your "friends" sell Rodan & Fields, you're missing out on some of the biggest a-holes on the Internet.

Yes. I’ve seen several people (even some successful in other careers) start peddling that crap in the last few years. Their Facebook pages annoy me to no end. Recently, I’m seeing bumper stickers with them in the Tallahassee area.

 

[NoleInNC]

The proper term is pyramid scheme.

And if you haven't had the misfortune of seeing your "friends" sell Rodan & Fields, you're missing out on some of the biggest a-holes on the Internet.

This. My feed is full of rodan and fields sellers. Annoying as all hell. They make it look like the easiest thing in the world to do. I don' buy it but many certainly seem to.