My small presentation on the reason MLM should be avoided and the alternatives to start a real buisness.

1. Why MLM is badWhy MLM is bad
And Why You Should Avoid It
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2. The MLM
Business
Model
Requires a network of distributors to market their
products/services
Distributors are encouraged to recruit more people as
distributors
They are usually compensated more for recruitment
than retail sales of the products/services.
Distributors are required to purchase a set amount of the
companies products/services each month to sell them.
Allows you to earn commission from your recruits and their
recruits. Sometimes going several tiers deep.
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3. Famous MLM Companies
Amway – Probably the most
famous of them all,thier 1979
win against the FTC legitimised
the MLM industry.
Amway – Probably the most
famous of them all,thier 1979
win against the FTC legitimised
the MLM industry.
Herbalife – Ordered to pay $200
million by the FTC for running
ufair marketing practices
Herbalife – Ordered to pay $200
million by the FTC for running
ufair marketing practices
Mary Kay – Cosmetics company
that has under fire for decetive
marketing tactics.
Mary Kay – Cosmetics company
that has under fire for decetive
marketing tactics.
Nu-Skin – Another Company
selling personal care
products,involed in many court
cases regarding running an
illegal pyramid scheme.
Nu-Skin – Another Company
selling personal care
products,involed in many court
cases regarding running an
illegal pyramid scheme.
Visalus – Sells nutriotional
products and been involved in
many court cases involving
charges of racketeering,running
an illegal pyramid scheme and
deceptive advertising.
Visalus – Sells nutriotional
products and been involved in
many court cases involving
charges of racketeering,running
an illegal pyramid scheme and
deceptive advertising.
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4. ReasonsTo Avoid MLM No.1
• Deceptive marketing tactics – MLM companies have been
accused of using misleading claims about their products
and business opportunity.They have been known to make
exaggerated claims about what their products can do and
lure people into their schemes by making ridiculous
income claims.
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5. ReasonsTo Avoid MLM No.2
• Ridiculous Income Claims – MLM companies will try and lure you in
by making it seem so easy to start earning a decent income.They
have multiple levels of leadership and with each level there is
different compensation plans plus prizes.
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6. Reasons to Avoid MLM No.3
• Constant need for recruits – Few MLM distributors make good
money from retail sales alone.To make the big bucks,you will
have to be a master recruiter and this is what MLM companies
encourage.They tell you that you are being selfish if you do not
offer this brilliant business opportunities to people you know.
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7. ReasonsTo Avoid MLM No.4
• Average Products – Despite the claims of many MLM companies,
their products are nothing to shout about. Many in the cosmetics
and nutritional space have misleading claims about their
products, these claims are not backed by any sort of credible
evidence. Plus they are way over priced,you can get similar items
from your local supermarket at half the price.
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8. ReasonsTo Avoid MLM No.5
• Not OwningYour Own Business – MLM companies try and sell you
on the false notion that if you become a distributor, you will own
your own small business.This false since you have literally no say
in many of the marketing,pricing and distribution of the products.
Things you would have control over,if you did indeed own your
own business.
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9. ReasonsTo Avoid MLM No.6
• Cult Like Mentality – Many members have a unhealthy relationship
with the company in which if you criticise them,they will either
defend the MLM industry will false facts or they will break of
realtions with those they disagree with.This may seem a bit far
fetched, but studies have shown this to be true. MLM companies
encourage a cult like mentality by preaching to never question
the products or MLM practices.
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10. ReasonsTo Avoid MLM No.7
• YouWill Lose Money – A comprehensive study by Dr JonTaylor,an
MLM critic, has shown in his book ‘Multi-Level-Marketing
Unmasked’ that a staggering 99% of people do not make money
with MLM and in fact the majority lose money.
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11. ReasonsTo Avoid MLM No.8
• Broken Relationships – Again,referencing Dr JonTaylors book
‘Multi-Level-Marketing Unmasked’ he shows how the MLM clture
has destroyed familes,broken friendships and caused conflict
witin communities.This is not a business model you should be
involved in.
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12. MLM Answers
• We all participate in pyramid schemes –This is one of the top
defence of the MLM industry.They say that all corporation are
built like a pyramid,with the CEO,shareholder,managers and
workers working a different levels of the company.True,but do
the people in normal jobs have to pay their employers to stay in
the job? No,do they have recruit to earn more money? Not unless
you are a headhunter.do they make ridiculous income claims? No.
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13. Better Alternatives
• Serious about starting your own business?- f you are serious about
starting your own business,there are better alternatives than
joining an MLM company.The internet provides many avenues
for you to start your own online business. One of the most cost
effective ways to make money online is through affiliate
marketing.
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14. Affiliate Marketing
• Affiliate Marketing is simply an online salesmen/women.You
promote other companies products or services and get paid a
commission every time someone buys from you.There are many
free resources that will teach you the art of affiliate marketing.
One of my favourites isWealthy Affiliate. Here is my
honest review ofWealthy Affiliate. I have also written an
extensive guide on how to make money through
Amazons Affiliate programme.
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15. Ecommerce
• Ecommerce – Ecommerce is another area in which you can build a
successful online business.There are two methods in
ecommerce,one requires a bit of investment and the other
requires little.
• Stock and ship –This is the traditional method,where you will have
to buy inventory in bulk,store it in a warehouse and ship items
everytime an order comes in.
• Dropshipping –This requires little investment,you hold no
inventory and your supplier will will handle the shipping,the profit
margins are smaller but it is less hassle.
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16. EcommerceTraining
• Store Coach –This is my favourite program for building an
Ecommerce business.The founders are three brothers who
successfully built multiple 6 figure stores and they have been ding
this for the last 15 years.They teach both dropshipping method
and the stock and ship method.Their course cpuld also be
adapted to affiliate marketing. Read my review of Store Coachor
join their free training here.
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17. My Full Article
• This has been a condensed article on the deceptive nature of the
MLM industry, read my full article on why the
MLM industry is bad
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should-avoid-it