Saturday, January 31, 2009
Finally! A Petition To Congress Against MLM Pyramid Schemes.
It has been sadly documented that most MLM (Multi-Level Marketing) "business opportunities" only cause 99% of their members to lose money - and not petty sums either. A real business model is very different from MLM.
A real business has a product or service to actually sell to customers (not at all involved in the business). That same business may also have a sales force to do the selling. BUT this sales force's size and locations are tightly controlled by the company. No real business wants 15 salesmen in a territory where only 2 of these people can actually make a living via their selling practices. Note that a real franchise controls how many restaurants reside in an area to avoid market over saturation.
MLM's on the other hand CLAIM they have a product to sell. (Yes, it exists, but it is a "cover" for where the "real" money is made). The real money is made by getting other people to join the "business" as distributors. (sellers of the business, not the product, to other individuals). There is absolutely no control over the sizes of the distribution networks, or where they develop. The product which is used to "hook" a new prospect into the business, is actually sold to distributors, public sales are minimal, as making new distributors, not product sales is where the money lies.
Once a distributer, you are strongly encouraged "forced into" buying the so-called product. Books, videos and seminars are also hard-sold to distributers using the ploy of wanting to really make it means you buy x, or go to a seminar. The distributer is spending all their income and personal savings for the books and seminars. Their sales never can cover their actual costs, even when they manage to build a large network of distributers working under them.
This system is doomed to fail. I have seen churches and self-help groups torn apart when one of these "business opportunities" comes into the group. A church is supposed to be in the business of religion and personal salvation (Christian model), not in church members fighting over who will get the new prospect for "their network". It is ugly, immoral and should be completely illegal.
Finally, a petition we can sign to (hopefully) get Congress to stop this terrible misrepresentation of "business". Obviously, the poor, desperate and inexperienced are the most common victims of these "business opportunities". Sadly, once victimized people try again with another MLM figuring "this time will be different". It won't be.
Please sign this petition:
I have left the actual address for you to see, so you can check out the site for yourself to verify that this is not a set-up, or spam. I have donated to this site and personally vouch for their reliability and trustworthiness.