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MLM= Morons Losing Money

2007-02-19

Anyone who reads the title and takes offense, quick check your bank statement over the last year. How much did you spend on inspirational tapes, videos, cd's that you are told is necessary to keep you motivated and you can write off as a business expense?

I know how the game is played. I experienced it first hand, watching an ex slowly lose everything in the hope of becoming a "diamond". Not that I am picking exclusively on Amway, Alticor, Quixtar or whatever name they are hiding behind. This is also about the Xango's, Isagenix,MaryKay,Longabegaberger Baskets, anyone who has a "Home Based Business Opportunity" based on  MLM as part of your scheme to retire wealthy. Mind you, I'm not talking about the products. If the business was straight forward and you were paid a straight commission for selling it, that's capitalism for you. Welcome to America.

If you are involved with one of these companies and don't think it's an MLM, Here's a checklist for you:

1) You have to spend money to join. Last time I checked I didn't pay my boss for the privilege of working for his bottom line.

2) You have to recruit other people and so on and so on. Would to god I could appropriate another person off the street to do my filing, and get a cut of their member fee, and the person they brought in to help them.. (I really hate filing).

3) You are strongly urged to attend monthly meetings, and pay for your seat. I snicker as I write this, I hate our meetings more then filing, try getting a dime out of me to attend.

4) You keep an inventory, or must maintain some kind of points or rewards or level every month or you don't get paid. Seriously I think the Labor Board should be able to oversee Home Based Businesses. There is a definition of what a 1099 employee is. The IRS states the determination is complex, but is essentially made by examining the right to control how, when, and where you perform those services. It is not based on how you are paid, how often you are paid, nor whether you work part-time or full-time. There are three basic areas that are relevant to determine employment status:
  •  behavioral control,
  •  financial control, and
  •  relationship of the parties


I'm telling you, maintaining quotas is financial control and they are your employer if you fail to get paid for not making your points, or it reverts to an alternate form of compensation.

5) You find that you no longer associate with family and friends who don't support your business or vision. Uh huh. Also known As Behavioral Control. There is a great book written by Ruth Carter called "Behind the Smoke & Mirrors" that lays out just how insidious these corporations are and the mind fuck they do on their members. Read it. You can get it at Amazon. Here's a kicker .. I'm not getting paid a dime to share this "insider" information.

6) You're really pissed off after reading this and think you are going to try and change my mind. I never said that WC Fields wasn't correct in stating a sucker was born every minute, but my middle name isn't Cock. (This isn't about sex, where at that point Cock is my middle name, but that's another blog, another day)

I was inspired to write this, as I have a profile on Myspace. I get multiple friend requests to please add them as they have the best Home Based Business As Seen On TV. Listen up Sawyer, just because they scammed you does not a guru make. I would almost feel bad for these people, but they have the same tools to investigate at their fingertips as I do. You aren't different. Sure there are some people who succeed. But the statistic for Amway is less then one half of one percent. The only people making money is the Devoss family. Follow the money trail. See who is benefiting from their donations. From my observations it's the Religious right. Everything is connected people, and the bottom line is, it's about getting your money, not theirs.

Today's Friend Request was the most incredulous so far. I'd send the link, but I'm not giving this person any outside attention. Suffice it to say, I'm no prude and my toy and porn collection is just as good or more so then the next woman's. However, I have my favorite places both on and offline to make my purchases. I can assure you though,  it isn't from a woman in an RV who travels the east coast plying her trade, toting her obese kids around, too make enough money to keep her hubby in pork rinds and Budweiser. Take a marketing class hun, know your audience, and presentation is everything.

I'm done my little diatribe about this. I lived it for seven years, and have seen its effects on other people. When I was looking  to buy a house, I stopped at a run down (fixer upper would have been an optimistic adjective) Cape Cod. The previous occupants clearly made a midnight  dash out the back door and took only what was necessary. Throughout the house in every room were signs of another failed home based business venture. Their products, tapes, materials, the guy had bought everything he was supposed to, except he forgot to pay his mortgage. I passed on the house as the township had to give it a new C.O. (Certificate of Occupancy) before you could move in.

I'm not saying don't try following your dream. Just wake up every once in a while and see if it has turned into a nightmare. The good thing about dreams is that they are obtainable if you go about it the right way. Write a business plan; take it to your SBA, if it is feasible you can get a loan to get it off the ground.

Enough said for now, I'm sure the naysayer's will be responding. Well, go have another sip of your juice, detoxify your body, put on your makeup and throw the empty tubes in your basket. Just leave me out of it.

FinalyFree (2007-02-19)
I sold Tupperware when I was a young stay at home Mom. I made good money and while I had to do most everything you named above it didn't seem like too much. What I couldn't deal with was the constant bitching from customers, that's why I gave it up. I have a friend that has had a home based business for over 20 years, she makes a very nice living at it but until I read your post and really gave it some thought I didn't realize just how much money SHE was making for that company.

scribbles (2007-02-19)
You make some very good points.

Digital Dreams (2007-02-19)
When my son was only 17 he was getting sucked in by one of these type business'. Fortunately for him I would have had to fund his original expenses so I insisted on attending the meeting with him. Needless to say I left with an angry son and a flustered gentleman as I gave him a piece of my mind on his attempt to suck in a youngster in his pyramid type scheme.

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