https://www.theguardian.com/fashion/201 ... ue-arbonne
https://money.howstuffworks.com/pyramid-scheme2.htm
https://www.truthinadvertising.org/mlm- ... stigation/
A TINA.org investigation found more than 97 percent of DSA member companies engaged in misleading marketing schemes that peddle false and unsubstantiated earnings claims trying to convince prospective distributors to join their MLM network. TINA.org’s probe examined the marketing of every DSA member company as of Nov. 29, 2017 and found that 137 out of 140 misrepresented the amount of money participants are likely to earn — misrepresentations that cause real and substantial harm to consumers.
TINA.org’s findings not only constitute violations of FTC law, they also breach the DSA’s own Code of Ethics and in doing so contradict DSA President Joe Mariano’s public statements on the supposed higher standards of the code:
But what do the earning figures actually look like for MLMs overall?
And this fact, that most MLM participants do not earn substantial incomes, is not new. The DSA acknowledged more than a decade ago that the majority of distributors made less than $10,000 per year from direct selling, with a median annual gross income of about $2,400, or $200 per month, which means that half of all distributors made less than $200 per month before deducting expenses associated with their business.
Moreover, a review of 32 income disclosure statements that TINA.org was able to dig up for current DSA member companies revealed that more than 80 percent of distributors grossed less than $1,200 annually or less than $100 per month before expenses. And for about half of these companies, the disclosures indicate that the majority of distributors made no money at all.
For example, Team National, whose CEO holds a seat on the DSA Board of Directors and also chairs the DSA Education Committee, revealed in its 2016 income earnings disclosure statement that 93 percent of its active distributors (or about 45,000 people) averaged a gross income of less than $500 for the year, or less than $42 per month before deducting expenses. The disclosure goes on to state that about 86 percent of all active distributors “received no income at all,” which equates to almost 42,000 distributors losing money. At the same time, Team National has posted more than 120 distributor testimonials, including over 50 videos, making lavish lifestyle claims.
That's right. Not only are you exceedingly unlikely to earn any worthwhile amount of money, you're actually pretty likely to even out after expenses or, worse, actually lose money! This is despite the claims made by these companies that you can be a self made woman (usually) with her own business. Yet, despite the blatantly false claims made by MLMs, they are perfectly legal businesses in the US and many other countries. Now, you may be asking yourself: "how does a business that follows the same essential structure of an illegal pyramid scheme not get shut down?" Apparently, pyramid schemes are legal if you pretend from the outset that the main goal is selling a product, even if nearly all of the company's profits actually come from sign up fees. Yes, it's that simple. If you make a business exclusively based on profit from new member's fees, that's illegal. If ypu make a business that derives virtually all of its profit from new members but you also sell a product (regardless of its actual marketability) you're totally in the clear.
So, now that you know a bit more about MLMs, what is your opinion? Should these companies be illegal like their pyramid sceme bretheren, or do you think the addition of a product differentiates these businesses enough that they should be legal? Are you in an MLM, or have you or someone you know ever been in one? What was your experience?
My three cents: MLMs are insufficiently different from illegal pyramid schemes, despite the "products" (which are often overpriced and low quality items that are difficult to move) and should be illegal or, at least, should be forced to end their deceptive advertising claims. I helped an ex-girlfriend peddle Avon, which sucked, and in the past year I've seen two good friends get sucked down the MLM rabbit hole. They've become distant because they're always trying to hustle their shit and their Facebook pages have become more fictional than real since they started lying to get new recruits. "Fake it till you make it" is a very real part of MLMs and recruits are usually encouraged to lie openly and often about their profits to boost their downline with new recruits.
https://www.talentedladiesclub.com/arti ... -and-sell/
So, what say you NSG?
Talk about some real easy money.
