"Indpendant" marketing, MLMs, Amway, etc...ever done it?

VaSteve · 03-01-2008, 06:28 PM

So I run this CPA review seminar all around the region. Today's session was held in a hotel. In the room next door was a guy running a seminar for 5linx www.5linx.com VOIP service. This guy's other job must have been a preacher since I could hear him through the partition and over the projector in our room. Telling his audience all these tales about how you can be your own boss, work from anywhere, etc. etc. etc.

Who does this? And makes money doing it?

I don't know if this was an MLM or not, but I just don't get this stuff. Sure THIS guy was charismatic as al get out. I could only hear half of it and wanted to go over and see what it was about.

As a business person, I just don't see it. I recall there was another one of these telephone services a couple of years ago. I think out of New York or Canada. (This operation is out of NY). I just don't see people that motivated after sitting in the comfort inn for a couple of hours to go out and sell to the world. Most people are too timid for this anyhow. I just see people selling to their immediate friends and family who probably nibble a little but don't bite. I know people evern do this with vacations and stuff...set up some half ass website and steer people to a big broker through their "storefront".

So, who's making the big bucks at this? I have been roped in a couple of times in my youth by the Amway guys...never bought on it though. (one guys smelled so bad like soap, like he too 50 showers a day with that stuff

)

My wife does one of those scrapbooking things...sells a couple of bucks worth of stuff to her friends, but does it mostly for the social/hobby aspect of it. It seems to cover its expenses....I wish my Porsche habit did.

Anyone here have some experience in this? Opinion? Comments?

cantdrv55 · 03-01-2008, 06:44 PM

When my wife was in her early twenties, she worked at the Herbalife HQ in Inglewood, CA. She knew Mark Hughes the founder of the company. She said he was soooo rich and everyone else in his inner circle was the same. But the folks way down on their "downline", not so much. Anyway, it was like a religion in the office; Herbalife products for snack and lunch daily. The unofficial motto was something like, "if you didn't use it, how can you sell it?"

legion · 03-01-2008, 06:49 PM

Like any Ponzi scheme, who gets rich?

The guy at the top. Maybe a few below him.

Everyone else is SOL.

Rick Lee · Rick Lee's Garage

Sure, some folks make some decent money at this stuff. What I can't figure out is how these gigs take on such a Kool-Aid religion vibe to them.

sammyg2 · 03-01-2008, 07:49 PM

If a product or service is worth anything at all, there wouldn't be a need for multi-level marketing or fancy high pressure techniques.

If one of these rip off artists was passing out $1000 bills I wouldn't take one.

KFC911 · 03-02-2008, 04:13 AM

Do a search on MLM, network marketing, scams, Utah, etc. and you will find lots of info. For the most part, both the products and the business opportunities are "suckers bets" for anyone not at the very top of the pyramid (i.e. anyone outside of Utah

).

billh1963 · billh1963's Garage

Quote:

Originally Posted by legion

Like any Ponzi scheme, who gets rich?

The guy at the top. Maybe a few below him.

Everyone else is SOL.

They're not a Ponzi scheme; however, they are not as easy to do as many of the sales pitches claim. The early members do quite well. Other than Amway, most MLM's have no staying power and fade out pretty quickly.

Sapporo Guy · 03-02-2008, 08:33 AM

I'm not gonna knock the products because there really are some good things that some of these MLM sell.

Rather let's target the actual system itself:

They are pyramid systems, over here we call them "the mouse's children" for a more European phrasing ... rabbit children.

Sure Amway is now legal and what not but still those at the top make the money. Those who join really late in the game.

Basically, a MLM is a timing thing. Get in early -- make money ... Johnny come late = SOL.

However, there is one thing that could be beneficial to anybody, especially those who are timid. Some of these system provide pretty good sales education, they get people motivated, they teach how to sell and what not. This alone sometimes is worth what you have invested.

So check out their education system and walk away a more motivated person

Then go off and build your own system

ahem ... can anybody say, internet affiliate

lendaddy · 03-02-2008, 08:49 AM

Yes people make money at it. They tend to be the same people that do well as realtors, car salesmen, etc.. If you can talk, twist, and be enthusiastic about it you will hook some suckers.

I live in the birthplace of Amway and have seen it all. 95% get hosed and 5% get fat.

911Rob · 911Rob's Garage

Your wife is in that 'scrapbook' cult.
Oh my!

a mind is like a parachute boyz and gilrz
read Trump/Kiyosaki's co-authored book, "We Want You To Be Rich"
tells it all

the · 03-02-2008, 03:17 PM

I read an "entrepreneurial" book a while ago, not sure who the author was, but it said a lot of things that made sense to me.

As we know, "life is sales!" (Right Rob?!)

Anyways, the book said that most of the MLM programs have really excellent sales people to learn from. The ones that succeed are 99th percentile sales people, and there is a lot to learn from them. The charismatic guy you heard giving the lecture is probably one of these guys who can sell anything to anyone. A very good skill to have, in any line of business.

To me, that wouldn't be enough to get involved in an MLM, but if I did, I'd look at as a way to maybe make money, but to likely get a very good education.

VaSteve · 03-02-2008, 03:58 PM

Quote:

Originally Posted by 911Rob

Your wife is in that 'scrapbook' cult.
Oh my!

No kidding. We get twice as many boxes of that stuff at car parts! The second computer is in her work area....I should take a photo. Makes my garage during the worst work look like a surgical studio. What a mess

Quote:

Originally Posted by the

The charismatic guy you heard giving the lecture is probably one of these guys who can sell anything to anyone. A very good skill to have, in any line of business.

Yeah, I bet he was preaching at a church today. They had music and video and everything (I poked my head in). What a set up for the comfort inn.

hytem · 03-02-2008, 06:00 PM

I don't know about the others, but Amway is a semi-cult. Their regional meetings are like the Moonies. It boils down to a pyramid scheme, no matter what they say. All you do is recruit others who recruit others, etc. You have to form your own pyramid so you can get commissions on everything sold below you. And the person who recruited you gets commissions from you and all your recruits, etc. You and your pyramid become part of their pyramid. It's really more that than buying and selling the Amway products. You have to build your pyramid and hope your recruits generate their own pyramids inside your pyramid.

911Rob · 911Rob's Garage

Quote:

Originally Posted by the

I read an "entrepreneurial" book a while ago, not sure who the author was, but it said a lot of things that made sense to me.

As we know, "life is sales!" (Right Rob?!)

Anyways, the book said that most of the MLM programs have really excellent sales people to learn from. The ones that succeed are 99th percentile sales people, and there is a lot to learn from them. The charismatic guy you heard giving the lecture is probably one of these guys who can sell anything to anyone. A very good skill to have, in any line of business.

To me, that wouldn't be enough to get involved in an MLM, but if I did, I'd look at as a way to maybe make money, but to likely get a very good education.

Ding, Ding, Ding, Ding!!!!
Bang on buddy, bang on.

I'm not in any MLM's, but man have I learned alot from what these people teach about motivation, sales, people and BUSINESS. But hey, just keep the 'ol parachute zipped up tight, makes it easier for the ones that actually want to do something about making some money

Life IS Sales, I agree.
If you don't think you're a salesman, think again. Take a look at your wife..... buddy you're a salesman!! ha, ha.

As for MLM's, I love it when a guy starts to prospect me for his MLM, I start answering all his questions and make it so easy for them to pop me the question..... very, very few ever do. Most people will never step out of their comfort zone, period. They could be falling from a plane about to splat all over the pavement, but they won't open that parachute, no way, no how.

If you're in an MLM, I say GOOD for you! Follow the plan and do it. The results will be very rewarding in more ways than one.
Cheers,