No. 1:

    MLM is a business that offers a better chance to get a lot of money compared to other businesses as well as other work.

    Facts:
    For almost everyone who invests, MLM ended with a loss of money. Less than 1% of MLM distributors who get the profit and those who receive lifetime income in this business is far smaller percentage again.

    How marketing and sale of the unusual becomes the main cause of this failure. However, if after all this business is more promising, the mathematical calculation will definitely limit the chances of success. This type of MLM business structure can only sustain a small number of winners.

    If someone requires a downline of 1000 people for him to obtain lifetime earnings, then 1000 people referrals had a million people will need to be able to get the same opportunity. So, how many people realistically can be invited to join?

    Much of what appears as growth is in fact a new distributor sacrifice continually. The money that went into the pockets of elite winners from the losers registration. With no limit to the number of distributors in an area and no evaluation of market potential, this system than it already is unstable.

No. 2:

    Network marketing is the new way the most popular and effective way to bring products to market. Consumers like to buy products through door-to-door.

    Facts:
    If you follow the mainstay activity of selling membership MLM continuously and observe the basic law, ie one-one retail sales to consumers, you’ll find a sales system that is not productive and not practical. One-one retail sales to consumers is old-fashioned way, not a future trend. Sales are directly one on one to a friend or relative requires a person to change the shopping habits drastically.

    Someone must get that choice is limited, often pay more for a product, buy with discomfort, and conduct business transactions with close friends or relatives. The lack of layakan (unfeasibility) selling door-to-door that is the reason why the fact that MLM is a business that keeps reselling the opportunity to become a distributor.

No. 3:

    In one day, all products will be sold by the MLM model. The retailer, mall, catalog, and most will die because of MLM advertising.

    Facts:
    Less than 1% of all sales made through MLM, and many of the sales volume is due to purchases by new distributors who actually pay the registration fee for a business which in turn will he leave.

    MLM is not going to replace the ways of marketing that now exist. MLM simply can not compete in ways other marketing. But a more definite, MLM represents a new investment program that borrowed terms and product marketing. MLM products are actually the membership (the distributor) sold by way of misleading and exaggerated promises of income. People buy products in order to maintain its position on a pyramid selling. MLM advocates always stress that you can become rich, if not for your own efforts so that wealth comes from someone you do not know who might join your downline, or the terms of the MLM “big fish”.

    MLM growth is a manifestation not of value added to the economy, consumers, and distributors, but rather a manifestation of the high economic fear and insecurity and increased dreams to become rich easily and quickly. MLM grow in the same way with the growth of gambling and lotteries.

No. 4:

    MLM is a new lifestyle that offers happiness and fulfillment. MLM is a way to get all the goodness in life.

    Facts:
    The most striking attraction of MLM industry as submitted by advertising and presentation of new members is a characteristic withdrawal materialism. Large companies will fall as a result of promises of wealth and luxury offered by vendors MLM. The promises are presented as a ticket to complacency.

    MLM Enchantment of excessive wealth and luxury on the contrary to the aspirations of most people associated with the work that is valuable and give satisfaction to something that becomes talents and interests. In short, the MLM business culture divert many people from his personal values and aspirations of turning a person to express his talent.

No. 5:

    MLM is a spiritual movement.

    Facts:
    Lending spiritual concepts like prosperity consciousness and creative visualization to advertise MLM membership, use of words like “communion” to describe the group sales, and claims that MLM is an implementation of Christian principles or the teachings of the Evangelical is a great apostasy from the teachings Rokhani.

    Those who focus on the hopes and dreams of wealth in his prayers clearly lost sight of pure spirituality as taught by all the religious affiliation of the human race. Abuse of spiritual teachings is surely a sign that investments offering MLM is a misdirection.

    If a product is packaged with a flag or a particular religion, beware! “Community” and “support” offered by MLM organizations to new members based solely on spending. If spending and is registered decline, the decline also “communion” is.

No. 6:

    Success in MLM is easy. Friends and relatives are the prospects. Those who love and support you will become your customers for life.

    Facts:
    Commercialization of family and friendship ties that are necessary for running the MLM is the element of destruction in the community and very unhealthy for those involved. Seeking profits by exploiting family ties and solidarity friends will destroy one’s social life.

    MLM activities emphasize the relationships that may not be able to restore the relationship based on love, loyalty and support. Apart from destroying nature, experience shows that only very few people who like or appreciate the atmosphere seduced by friends or relatives to buy the product.

No. 7:

    You can do MLM in your spare time. As a business, it offers flexibility and freedom to manage your time. A few hours a week to generate additional revenue and can develop into very large so that we no longer need to work the other.

    Facts:
    Decades of experience involving millions of humans have shown that making money through MLM requires extraordinary expenditure of time and high skill and fortitude. Apart from hard work and talent, MLM also clearly undermine more areas of personal life and more time. In MLM, everyone is considered a prospect. Any time beyond sleep is the potential for marketing. There is no limit to places, people and time. As a result, there is no place free or free time once a person joined the MLM.

    Behind the veil of their own money and do in her spare time, MLM system and ultimately control dominate a person’s life and the strict demands adjustments in its programs. This is a major cause of why so many people sunk so deep and eventually become totally dependent on MLM. They become alienated and abandon the ways of other relationships.

No. 8:

    MLM is a new business in a positive and supportive of strengthening the human spirit and personal freedom.

    Facts:
    MLM mostly walking because of fear. How to forecast recruitment will always mention the collapse of the models other distribution, the collapse of the robustness of the American economy, and at least a chance at another field (professional or service). Professional, trade, and conventional business means continually diminished and belittled for not offering “unlimited income”.

    MLM is stated as the last best support for many people. This approach, in addition to mislead often also result in lower spirits for people who want to achieve success according to his own vision of success and happiness. A healthy business will not demonstrate its superiority by presenting bad predictions and warnings scary.

No. 9:

    MLM is the best option to have your own business and gain economic independence is real.

    Facts:
    MLM is not self-employment (self employed business) is true. “Having a” membership MLM distributor is an illusion. Some MLM companies forbid their members to have membership of another MLM. Almost all MLM contract allows for termination of membership with the easy and fast. Apart from breaking the contract, downlines can be taken over by a variety of reasons.

    Opt in MLM requires people to imitate existing models rigorously, rather than independence and individuality. MLM distributors are not entrepreneurs (entrepreneurs), but only a follower in a complex hierarchical system in which they have little control.

No. 10:

    MLM is not pyramid program because there are products (goods) being sold.

    Facts:
    Sales of products was not an antidote to MLM to escape from the laws against pyramid program, nor is it an answer to the allegations of unhealthy trade practices (Unfair) as stated in state law or federal. MLM can be a legal business if it meets certain requirements that have been defined by the FTC (Federal Trade Commission) and the state attorney general.

    Many MLM clearly violates these terms and while it remains in operation because no one has demanded. Provisions court recently set a 70% rate to determine the legality of MLM. That is, at least 70% of MLM products sold must be purchased by consumers of non-distributors. This provision of course will make almost all MLM unlawful entry category. The largest MLM implementers admit that they only sell 18% of its products to non-distributors.

10 Lies of Multi Level Marketing
MLM business grows and MLM companies were bermunculan.Kegiatan withdrawal of members is everywhere. As a result, the impression as if this business is the wave of the future business, the business model that is gaining momentum, more and more accepted and recognized legally, and as heralded by the initiators, the MLM model will replace most of the marketing and sales of other types . Many people came to believe with the recognition that success can be obtained by anyone who faithfully follow this system and apply his methods, and that eventually everyone will be a MLM distributor.

With over 14 years experience in the field of corporate consulting for the distribution and after more than 6 years researching and writing about MLM, I managed to gather information, facts, and the inputs which indicate that the MLM business is basically a free market lies. This could be analogous to mention buying a lottery ticket as a “business” and win a prize as a “lifetime income for anyone”. The validity of the MLM industry statement on the distributor income potential, a wonderful explanation about the network business model, and its recognition of mastery in the distribution of the product is exactly as the validity of UFO sightings creature.

Legality MLM system is only based on a decision in 1979 to one company. Legal guidelines set out in that decision continually ignored by the MLM industry. Lack of regulation and monitoring by authorities is also a reason why this industry persisted despite several demands by the state attorney general or the Federal Trade Commission.

MLM’s economic performance is always marked by high failure rates and financial losses for millions of people. MLM structure, in which positions on an endless chain of sales achieved by selling or buying goods, mathematically untenable. Also, MLM system that allows recruits an unlimited number of distributors in the marketing area is clearly not stable. MLM’s core business, ie, direct sales, in contrast to trends in communication technology that is cost-effective distribution (low cost), and interest in buying on the part of consumers. Activity in retail sales in MLM is in fact a mask from its main business, ie attract owners of the money (investors) into the organization pyramid that promises revenue growth doubles.

As in all pyramid program, the income of the distributors at the top and the profits of the company sponsor comes from the influx of investors (investor cash) just continuously at lower levels. If viewed in terms of company profits rough and wealth elites at the top, the MLM model will appear as if there would be no death for, just like the program before it finally collapsed pyramid or prosecuted by authorities. Constituents or the main support consumer public is not MLM industry but growers hope the money. The market for growers this money thrives in times of economic change, globalization, and employee layoffs. The promises about easy finance the acquisition and the link between wealth with ultimate happiness also play a major role in this market condition. Therefore, the direction of MLM marketing is primarily targeted to candidates (leads) the distributor, rather than the form of promotional products to buyers. MLM product which is not really long distance services, vitamins, or skin cream, but the investment program for its distributors who are misled is described with a high income, time use a little, little capital, and success in a short time.