“All MLMs Are A Scam!”

I’m sure you’ve heard this somewhere at sometime said by someone.  Are all MLMs a scam?  Where does this thinking that everything is an MLM scam stem from?  Is it a legitimate statement?  In this article I’m going to answer these questions and a few others.  The three previous questions can easily be answered in 15 seconds as follows:

1. No
2. Failure, Ignorance and illogical thinking
3.  No

If you just wanted to get the short answer then you can stop reading this article right now.  Still with me?  Good, lets take a more in depth look at “network marketing scams.”  In order to do this I’m going to approach these pointed questions from a different angle by answering them through a scenario.  Lets just imagine that MLM is on trial, actually sitting on the witness stand, and being accused of being a scam.  Unlike normal courts of law the defendant has the ability to address questions to the court and the prosecution and they are obligated to answer them in turn, think Perry Mason meets Judge Judy.  So here we go…

Prosecution:  Is it not true that ALL MLMs are a scam?

MLM: No

P: Oh is that so…So it is not true that these “companies”, as we will loosely call them, are structured so that people at the top make all the money while the people on the bottom make nothing.  The people at the top are vacationing year round while the people on the bottom are barely making enough to cover their expenses, if that?  And before you answer let the court record show that I have in my hand a court preceding document of a recent investigation of one of these so called “legitimate opportunities” in a Notice of Proposed Agency Action against Company XYZ by the State of Vermont that states the following finding: “Allegedly, in 2008 Company XYZ recruited 91 Vermont participants who “paid approximately $61,741.69 to be a part of the program”, averaging $678 each.  All but two lost money, with one making $696 and the other making $700. In 2009 “over 300″ Vermont participants joined Company XYZ and paid about $234,800, averaging about $775 each.  According to the Commissioner’s Office Company XYZ’s records show $896.86 was paid out to these participants, in total.” 

MLM: What was the question again?

P:  Is it not true that all MLMs are scams set up to make the people on top the most money while everyone else suffers, commonly called a pyramid scheme.

MLM: Oh…you mean, like your job.

P: Excuse me?

MLM:  Well,  in every traditional company you have a CEO at the top, then the President, Vice President, General Manager, Regional Manager, Branch Manager, Supervisor, etc. and then you.  Out of all of those people that I just mention in that pyramid, commonly known as the corporate triangle, where do you fall?

P: Um, at the bottom.

 MLM:  And isn’t it true that the people at the top make most of the money and spend the most time vacationing year round while the people at the bottom get paid a marginal salary in which they can barely pay for their living expenses, if that? 

P: Yes that’s true, but that’s different!

MLM: According to your definition do you agree that Microsoft, Google and Apple should be on trial as well because their employees are “losing” money or “failing” due to the fact that inflation is rising and their pay is not?

P: No.  Its not the company’s fault that these people are “failing.”

MLM:  Is that so?  The majority of individuals who seek to be a professional in their field as a musician, writer, athlete or actor fail.  70% of franchise owners close their doors by the end of year 4.  80% of the 40 million Americans who have bought gym memberships aren’t using them and therefore are failing to reach their weight loss goals.  So why is it that when 95% of the people who participate in MLM do not properly do what they are supposed to do, devoted enough and long  enough to see success in it, it in some way indicates that the company or industry that they have chosen not to perform it in is an illegal scam?

P: Well, um.  I don’t know.

MLM:  It seems to me that this type of illogical thinking has placed a bias standard on the network marketing industry in which this is the only industry in which participant failure marks to serve as proof of a broken business model.  Do you agree?

P: I guess so.

Judge:  Does the prosecution have any further questions?

P: No further questions Your Honor, the prosecution rest.

J: Any further questions from the defendant?

MLM: I think I’ve said enough Your Honor.

J: I agree.  Case Dismissed.

If you want to stop blaming the industry, your company, your sponsor, your mom and your dead Uncle Larry for your MLM failure and start learning how to gain true MLM Success then visit here.

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To Staying On Top!

Mike Jackson

757.641.5901

mogulmikejackson@gmail.com

Disclaimer: The information provided in this post is factual, the company names and locations have been changed.

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