Monday, September 26, 2011

Amway And MLMs A Con Game?

Great Thread posted at

It is stunning to realize the enormity of this con. Multi-million and billion dollar companies, stock exchange listed companies, companies that put on the facade of being a good corporate neighbor and innocent "business" (cough) next door.

Nework marketing is a flawed and unsustainable business model that effectively is fed and supported by those on the bottom. Those on the bottom work a job to fund their product purchases. Those spoils of war then are divided up by the upline and sponsor company. Those on the bottom, who use funds from their jobs (rather than product sales) to sustain the "business", are an ever expanding rotating door of new recruits.

Although the products may be of high quality and slickly packaged, and give the impression that you are a marketeer of these sundry goods...the reality is much different. You are required to buy monthly quotas for personal use and recruit your ass off to gain entry into the promised land. The product you are really selling is a dubious "business opportunity"...your real market is "opportunity seekers".

A real business markets and sell goods and services. They are sustained by real retail sales. They order only what they know they can sell. From what I see all these mlms push recruiting as the ticket to the good life. Products and retailing mean nothing.

Another major difference is a real business owner holds title to his business...something he can sell. In mlm, you own nothing but your small product inventory.

The nature of this false and flawed business model will always have in its wake a vast turnover at the bottom of the pyramid structure. Its the nature of the beast and can be no other way, all math aside. The many "losers and the quitters" and dreamers who hang in there waiting for their ship to come in are those who support the top and sponsor company. There will always be a relentless drive to recruit at the bottom as it has nothing to do with true product retailing to support the business but finding and recruiting opportunity seekers. The emphisis is always on finding new recruits rather than selling product. And indeed, many of these mlm businesses put restrictions on the associates ability to retail the product...which subtly strengthens its true goal of recruiting as the primary revenue stream...not product sales.

These "businesses" (cough again) are predatory and prey on the many by appealing to dreams of luxury and a life of ease, especially those with troubles in their life. The start money is low to get into the "business", which is unlike a real business that takes more sizable seed money, some knowledge and guidance and a real business plan.

Those few that actually make sizable incomes from these schemes must live with the knowledge that their life is supported by the broken dreams, efforts and losses of those on the bottom. They conveniently set aside any feelings of culpability after stepping on the bodies of their fellow man so they can proclaim that they worked hard and made it.

There simply is no parallel between a network marketing model as a "business" and how a "normal?" business really works. I understand this because I own a real business that retails real product.

Network marketing is simply the greatest con game of all time. They should all be shut down.


rocket said...

Agreed, either there needs to be significant consequence for breaking the rules, or more regulation.

What is going on is exactly what the problem is.

In my most recent post, I have a Crown in Amway flagrantly making ridiculous income claims. My follow up will clearly demonstrate how Amway is complicit with these types of claims, in that they say nothing, and I believe do nothing.

Growth? I doubt it. I would have a hard time believing what any of these companies say.

ExAmbot said...

i agree this industry should be shut down and wiped out. it a cancerous scourge in the world today being paraded falsely as free enterprise.

mlm/network marketing etc are money changing clubs where new recruits' cash gets passed on to those at the top. since this is illegal adding the pretext of a product and/or a service helps the perpetrators get around the law.

in all of them the emphasis is to recruit and self consume the set quota in order to make it big and access "residual income" (cough).

they also figured to make their con stand on it's own as an industry it pays big time if said perpetrators can as a group, bribe our self whoring politicians, sorry i mean lobby and finance the ones that will represent their interests.