Lies in Multi-Level Marketing

I was looking at my friend's status on my Yahoo! Messenger and one status from Wilz which caught my eye. A link labeled The Ten Big Lies of Multi-level Marketing. I am never a big fan of Multi-level Marketing (MLM) because most of their "distributors" or whatever they call themselves are either damn annoying or they don't sound honest each time they try to persuade someone to be their "business partner. Please click on the link I provide to have a look at the site. Here are the few points I found true:

Lie #3: Eventually all products will be sold by MLM. Retail stores, shopping malls,
catalogs and most forms of advertising will soon be rendered obsolete by MLM.

Truth: Fewer than 1% of all retail sales are made through MLM, and much of this is consists of purchases by hopeful new distributors who are actually paying the price of admission to a business they will soon abandon. MLM is not replacing existing forms of marketing. It does not legitimately compete with other marketing approaches at all. Rather, MLM represents a new investment scheme couched in the language of marketing. Its real products are distributorships that are sold through misrepresentation and exaggerated promises of income. People are buying products in order to secure positions on the sales pyramid. The possibility is always held out that you may become rich if not from your own efforts then from some unknown person ("the big fish") who might join your "downline."

MLM's growth does not reflect its value to the economy, customers, or distributors, but the high levels of economic fear, insecurity, wishes for quick and easy wealth. The market dynamics are similar to those of legalized gambling, but the percentage of winners is much smaller.

I find this line very true. Most of the time those MLM guys will say that their business plan is the future. They say that their product is as reknown as another product and that their product don't even need advertising to get this far.

Lie #4: MLM is a new way of life that offers happiness and fulfillment.
It provides a way to attain all the good things in life.

Truth: The most prominent motivational themes of the MLM industry, as shown in industry literature and presented at recruitment meetings, constitute the crassest form of materialism. Fortune 100 companies would blush at the excess of promises of wealth, luxury, and personal fulfillment put forth by MLM solicitors. These appeals actually conflicts with most people's true desire for meaningful and fulfilling work at something in which they have special talent or interest.

Another lie that I totally agree. MLM zombies distributors always use this line to motivate people. They always use the weakness that every human being seems to have, money. According to them, the more money you make the more happy you are. By being their business partner, you can be happy.

Lie #6: Success in MLM is easy. Friends and relatives are the natural prospects.
Those who love and support you will become your life-time customers.

Truth: The commercialization of family and friendship and the use of"'warm leads" advocated in MLM marketing programs are a destructive element in the community and very unhealthy for individuals involved. People do not appreciate being pressured by friends and relatives to buy products. Trying to capitalizing upon personal relationships to build a business can destroy one's social foundation.

Another line made famous by MLM zomb... er.. distributors, the more you pressure your friends and family to be you business partners, the more they hate you and avoid you. By the end of the day all your friends might runaway everytime they see you and your family members will avoid you as if you have the plague.

I advice all of you to go to the site and read the entire content. It is very informative. So people, before you are forced persuaded by your friends to be one of those MLM zombies, please think twice. True there are some people who make it rich in MLM but exactly what is the percentage of such people? Of the thousands of people how many of them actually is that rich? I was tricked into MLM once by the "if you spend RM100 each month and each week you find 2 people to be your downline, in a year you can earn thousands". Thankfully the fees for membership is less then RM100. I treat this as a lesson to be not so materialistic or else people might capitalise on your that weakness and make you another mindless zombie who only think of getting rich in one year.

Credit goes to Wilz for sharing this piece of article in his status.