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

[snowbound]

just be cautious. if its too good to be true, scam na yan. mahirap dyan, bayad ka muna membership fee. pasok mo palang, talo kana. hirap kumita ng pera ngayon. ingat sa pera.

[shadow]

kalokohan yan.....yun company lang ang kikita dahil sasali ka pa lang magbabayad ka na pra sa initial na stocks mo....walang kahiraphirap yun company...

[russpogi]

MLM? hindi ito scam. magiging scam ito pag pyramiding.

Oo nga pala. I stand corrected

[bad driver]

pag may malaking joining fee, scam. pag kikita ka sa joining fee ng recruit mo, scam yun.


Avon is an example of a LEGIT, non-scamming mlm. actually 2 levels lang sya and anyone can be promoted to the higher level and not get stuck at the bottom.

so mga pre, magbenta na kayo ng make-up.

[oldblue]

di dapat biruin ang pagbebenta ng make-up hehehe, mas madami pa babae ngaun kaysa lalaki

[tsupermario]

^ tama. isa pa perks ng pagbebenta ng avon, ung mga babae daw nagm-model ng mga latest underwear nila

[Alpha_One]

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

Tumpak.

To elaborate, MLM is a form of marketing (obyus ba). Traditional marketing relies on companies hiring salesmen selling products, while MLM relies on the company salesmen hiring salesmen hiring salesmen... (ad infinitum) to sell products. The trouble with MLM is the "ad infinitum" part. While traditional marketing companies stop hiring salesmen when they have enough to sell their products. MLM doesn't have this sort of safeguard - members will continue to recruit new members upon the premise that it'll help them more - it's true, but only up to a point.

Past that point, the MLM scheme will end up having too many salesmen trying to sell too many products to too few people. The new recruits after that eventually end up at best using their own products, or selling to each other - which defeats the whole exercise and puts them back into square one. AT BEST. At worst, these new recruits spend considerable time, effort and money and get back nothing, simply because nobody wants their product anymore (supply far outstrips demand). On the average, people will actually LOSE money because they could have spent their resources on ventures that are much more productive than the MLM scheme they joined too late in.

[BoEinG_747]

di dapat biruin ang pagbebenta ng make-up hehehe, mas madami pa babae ngaun kaysa lalaki

malakas talaga bentahan ngayon ng make up .di lang babae kasi gumagamit pati na din mga lalakwe

[straker]

Joining an MLM outfit, is the biggest financial mistake of my life. I've sunk over 80T in this deal, but I couldn't recover afterwards. The products they sell are good, but they're expensive....they're on high maintenance.

Back off, and engage some other business which you will push on your own, not by some overconfident bozo who's trying to tempt you into.

[Negus]

Back off, and engage some other business which you will push on your own, not by some overconfident bozo who's trying to tempt you into.

True, the most irritating thing that the recruiters do is when during their presentation (yes, i did attend one out of curiosity), they show of pics of people who bought cars, cellphones, etc, out of their profit from the said MLM. They even belittle employees working 9 to 5 jobs. That they make more money than doctors engineers etc. but for how long? hilig nilang banggitin yung book ni kiyosaki. Yun na yung pang-enganyo nila. Number one pang-uto nila yung famous person in politics na affiliated sa company nila. they promote an image na "protektado" sila.

Sadly, i overheard would-be members talking about how rich the earlier members have become and how fast. They look very impressed, and looks like they would join right then and there. Thinking they could easily coerce someone to join with that kind of marketing strategy.When i asked the recruiter if they can provide me with a DETAILED breakdown of expenses of where would the 9,980 joining fee would go, they can't provide one. Then i asked them for a study of sustainability, ala din just the ROI. And that's bullshit. I never entertained any MLM profiteers again.

oh btw, there are good mlm companies out there, (Avon, Nuskin (japan), kadalasan cosmetics) limited levels lang ang allowed thus promoting selling of products rather than recruitment.