MLM (Multi-Level Marketing): Scam or Legit business [MERGED]

**Alpha_One** · March 29th, 2007 07:31 AM

MLM, at best, is no more than a novel way of doing business. Pag may tiyaga, may nilaga. Pag may isinuksok, may madudukot, pag may tinanim, may aani...*gets shot*

If somebody's trying to sell you into joining an "MLM" promising easy money, either he's lying or doing something illegal.

**empy** · March 29th, 2007 09:24 AM

MLM per se is not a scam. but it's a crappy business model. take an unskilled sales force, give them little to no product knowledge or training, and give them an incentive scheme that is sure to demotivate all but the most skilled salespeople and recruiters. anyone who's ever successfully led organization can tell you that's a recipe for disaster.

sure, the law of averages ensures that you'll at least make some sales, but it's a totally ineffective use of your resources. plus, only the people at the very top make the money anyway.

a lot of MLM's become scams when their claims for the product and its earning potential turn from reality into fantasy

**boybi** · March 29th, 2007 09:27 AM

Di ba MLM din yung mga Natasha, yung mga nagbebenta ng grapeseed supplements, etc.?

**uls** · March 29th, 2007 09:31 AM

It's a rob-Peter-to-pay-Paul thing..

MLMs do make some people a lot of money. Usually those who get in early. Or those who actually start the MLM company.

MLMs usually collapse under its own weight. Coz they are simply unsustainable.

So kawawa ung mga late pumasok.

**Galactus** · March 29th, 2007 09:39 AM

The problem with MLM schemes, most of the companies into it rely more on "subscription fees" from recruits, who in turn have to find additional recruits to earn income. So in the public's mind, MLM = pyramiding.

Buti sana if they offer great, innovative and useful products, but generally they're common at overpriced. Mahirap ibenta, yung mga bumibili pa puro kamag-anak at kaibigan ko, at kailangan ko pang lumuhod para sila maawa, hehehe

When my wife joined Forever Living, she plunked down 12k+ for the combo kit and then joined First Quadrant (joining fee then was 8,888). Pero without my knowledge, sinama pala ako, her sister-in-law and her mother, plus her 2 friends (pero pautang yung sa 2 friends). So she spent over 48k. Wala pang 5k yung na-recover nya.

**uls** · March 29th, 2007 10:25 AM

the joining fee new recruits pay is used to pay the recruiters and the recruiter's recruiter, and the recruiter's recruiter's recruiter and so on....

the products are actually only props to make the MLMs look like legit businesses.

But the main income generator of MLMs is joining fees.

**doriftospeed** · March 29th, 2007 11:12 AM

MLM=Pyramid. Same difference.

**oliver1013** · March 29th, 2007 12:14 PM

Been a member a couple of years ago. This is not for everyone, you will earn, true if you work your ass out. Pero in the end not worth it. Some things are more valuable than money. Pag andiyan ka sa mundong yan puro pera lang at material na bagay ang fuel ng mga tao.

**mmanson** · March 29th, 2007 03:14 PM

i dont think so. pag tinamad ka dito wala ka talagang pera..just like any other business. scam to pag nagtiyaga ka nga kaso yung nakuha mong tseke e tumalbog.. ah yan ang scam.

about pyramid schemes:
addtl info:http://en.wikipedia.org/wiki/Pyramid_scheme

..There are other commercial models using cross-selling such as multi-level marketing (MLM) or party planning which are legal and sustainable, although there is a significant grey area in many cases...

**niky** · March 29th, 2007 07:50 PM

It's a scam, a gyp, a con, a way for people to make money off of other people who make money off of other people who make money off of other people who make nothing because they can't sell.

Why use MLM? If your market area is saturated with other sellers already (which is quite possible, given that most people "recruit" their friends and neighbors), then you are better off just selling any other kind of product door to door.

Working at a school with a big employee base, I see lots of these things come and go. I've seen just one person of the dozens who've joined actually make any money off of this, and she's a housewife with little to do, and she's married to a prominent person in the community, so she has lots and lots of contacts and "recruits". That's about the only way to make money off of this.