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Thread: melaleuca- catalog sales

  1. #11
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    HT - just say "NO" if he offers you any Kool-Aid!!

    Spider is right - most of these companies have now made adjustments to prevent being labeled as an illegal pyramid scheme. Whatever they are labled these days it's amazing how they come at you with a certain gleam in their eye.
    Steve B

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    No matter how much effort the recruiters try to get you into their downline, at the end of the day, someone has to be selling product or the whole thing falls down. You can't have everyone in the company recruiting and nobody selling. I think where MLM works well is if you can find a product that compliments your business. For David, he might add supply and installation of water filters, available as a network marketing program. A fitness trainer might join a health supplements program, like Maleleuca or other program. I know a buseinss coach who reps SendOut Cards. (There is another thread here on diversifying - this is one easy way to do that.)

    As for the pushy rep that David encountered - who wouldn't let him see the catalog - I'd go directly to the company website and buy there. If one is interested in joining to create a business, then find someone else to join under or ask the company for a referral.

    MLMers don't make much money because they focus on recruiting and have no enthusiasm for the product.

  3. #13

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    Quote Originally Posted by Spider View Post
    I've heard of Melaleuca and heard good things about them. Have never used their products, though.

    It is a multi-level marketing company (MLM - or NM, network marketing) but it is incorrect to calll it a pyramind scheme. Pyramind schemes are something different and are illegal. There is nothing illegal about MLM or NM. As a system of doing business, MLM/NM is legitimate and is, I am told, taught at Harvard as an genuine and accepted business system.
    The problem is, many mlm's are scams. There are plenty of legit ones including Amway who is still around and marketed under various names.

  4. #14
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    Quote Originally Posted by billbenson View Post
    The problem is, many mlm's are scams. ..
    That is not true. Because of all the problems in the past, multi-level and network marketing must be one of the most highly regulated and closely watched industry in the country. There are so many rules and regulations, I'm surprised anyone would want to start a MLM or NM company, these days.

    Now, there might be quite a few people in MLM/NM that any one person might not like, but I would venture to suggest that there are more scams in the non-MLM/NM world than the other way round.

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    It does not surprise me that people are willing to start more and more NM/MLM programs. As by the largest margin, people that participate in these programs, seem to be very willing to jump ship as soon as some new fantastic program is released, with some different product or spin on the marketing.

    My opinion on MLM/NM in relation to pyramid scheme, is that there is a very fine line, almost any MLM if you took away the product they are selling you are left with a Pyramid scheme. Just my opinion, do feel free to disagree though.
    Joel Brown
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  6. #16
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    Duh! Take away the product from any business and it is a pyramid scheme!

  7. #17
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    Quote Originally Posted by Spider View Post
    Duh! Take away the product from any business and it is a pyramid scheme!
    Phooey! Ya beat me on that one.

  8. #18

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    Quote Originally Posted by Spider View Post
    That is not true. Because of all the problems in the past, multi-level and network marketing must be one of the most highly regulated and closely watched industry in the country. There are so many rules and regulations, I'm surprised anyone would want to start a MLM or NM company, these days.

    Now, there might be quite a few people in MLM/NM that any one person might not like, but I would venture to suggest that there are more scams in the non-MLM/NM world than the other way round.
    My most recent experience with a MLM was a friend of a friend trying to pitch me on it because I'm a "web" guy. It was for .ws domains. Here is how it worked:

    $10 to sign up. You get your own domain and email. The reality is it is a subdomain on the mlm's site, not your own domain. A common trick.

    Usual strategy. You get all your friends to sign up and spend 10 hours a day talking to people on the phone. The person pitching me kept trying for 3 years.

    The strategy included buying opt in email lists for $100. This was their main source of revenue.

    It was set up so you couldn't make much money unless you were very cleaver. They gave you a plan to success, but it would never make you much money and required buying email lists.

    Most people quit after a while. Since the domain was the mlm's, any emails that that person collected belonged to the mlm, at least after the person quit. This is what they resold to people when the bought the mailing list for $100.

    The person pitching me eventually quit, having worked it hard and making less than McDonalds wages for her effort.

    The mlm's buisiness plan counted on people dropping out so they could resell the email list. Most dropped out because there was very little money to be made.

    I've seen emails for this same mlm recently. My name is being used by other members who bought the email list.

    Is there a product here? Kind of. The business model of the mlm, however, relies on a high drop out rate. Could you make money at it? Yes, but not using the plan they give you. It also required that you sucker other people into buying into the plan.

    In my book that is a scam, and it's not the only mlm scam out there. As I said, there are legitimate ones as well, but the industry is still cluttered with scams such as I described.

  10. #20
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    Yeah, it's terrible, isn't it?!

    I know a company that charged a lot more than $10 to get in. It required real world premises and you couldn't just set up where you wanted, you had to set up where the company told you to.

    You had to buy all your products from the company, you couldn't sell anything they didn't sell to you. You were trapped! That's how they made their money!

    And they fixed your prices, no matter what your costs were!

    Not only that, you had to follow their plan exactly - they even told you how you had to store the product.

    It was set up so it was very difficult to make money because the upfront fees were so high.

    You were responsible for getting your own customers but you weren't allowed to advertise. And if you couldn't make a go of it, the company kept your money and passed any clientelle you had created on the the next sucker they sold your building to.

    And it wasn't even a MLM scheme. It was one of the largest companies in America -- McDonald's!

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