Help me convince my partner that MLM is bad news...

Help me convince my partner that MLM is bad news...

Author
Discussion

Simpo Two

85,420 posts

265 months

Friday 21st July 2017
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4x4Tyke said:
These are the Dunning Kruger effect in action.
Interesting; I've met some notably dim people who think they are clever... I suppose as a coping mechanism it's a good patch.

EddieSteadyGo

11,920 posts

203 months

Friday 21st July 2017
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anotheracc said:
What I'd like to know is how does HMRC not clamp down on the fact that none of the are declaring this 'income' although probably because their isn't any to be fair!! Even at a loss they should be registered, which they are not.

Also Trading Standards - is it legal to sell a dream which you are not actually living, or financing by other methods?
Very good questions - I don't know the answer unfortunately.

I do think there is a broader point which I am very concerned about about which is the way our society is heading (to the extent I have sat down with my older son to warn him about the risks specifically).

People who focus projecting this perfect life on instrgram and facebook. This even extends to the "supercar youtubers" who purport to make owning a F12 or 720s an entirely reasonable proposition for the average person in their 20's.

Whether they are looking to gain out of it financially or not, I think it is unhealthy to pretend to young people there is an easy solution to life, that doesn't involve hard work, dedication and effort.

They present an illusion of wealth, glamour and luxury which can lull young people into thinking it is realistic and normal. This could easily cause more vulnerable people to become unhappy when faced with their "own reality" and also could make people borrow more than they are able to afford in trying to pursue the "dream" for themselves.

Edited by EddieSteadyGo on Friday 21st July 12:08

anonymous-user

54 months

Friday 21st July 2017
quotequote all
EddieSteadyGo said:
Very good questions - I don't know the answer unfortunately.

I do think there is a broader point which I am very concerned about about which is the way our society is heading (to the extent I have sat down with my older son to warn him about the risks specifically).

People who focus projecting this perfect life on instrgram and facebook. This even extends to the "supercar youtubers" who purport to make owning a F12 or 720s an entirely reasonable proposition for the average person in their 20's.

Whether they are looking to gain out of it financially or not, I think it is unhealthy to pretend to young people there is an easy solution to life, that doesn't involve hard work, dedication and effort.

They present an illusion of wealth, glamour and luxury which can lull young people into thinking it is realistic and normal. This could easily cause more vulnerable people to become unhappy when faced with their "own reality" and also could make people borrow more than they are able to afford in trying to pursue the "dream" for themselves.

Edited by EddieSteadyGo on Friday 21st July 12:08
A fair amount of research on the negative effect social media has on well being - https://academic.oup.com/aje/article-abstract/185/...

Also that the receiving of 'likes' is addictive releasing dopamine, also linked to the expectation of reward hence the phone fixation amongst the heaviest SNS users (kids) - https://www.ama.org/publications/MarketingNews/Pag...

Hence why I will be 'depriving' my daughter of a tablet/phone for as long as possible. This will, of course, make me the worst parent in the world ever - a title I aim for daily




anotheracc

Original Poster:

29 posts

86 months

Friday 21st July 2017
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Gtom said:
Is this the make up thing that seems to be all over social media?

An old friends wife does it. I refer to it as peddling st to scrubbers on Facebook. She got blocked after a week because it became her life.

I will be honest I had no idea what MLM was so I googled it. It took me a few seconds to realise it's pyramid selling in a new frock.
Make up and general skin care. Of course we all know it's pyramid selling under the guise that an actual product is involved but it gets them past the regulators and they legally claim to NOT be a pyramid scheme and continue to deceive.

anotheracc

Original Poster:

29 posts

86 months

Friday 21st July 2017
quotequote all
Well, rather than slag it off or criticise it in anyway I have decided to present her with the facts, this morning!

I've researched and provided citations for my various sources. The company itself now provides a Distributor Compensation Summary on it's website, I think due to the fact they are trying to look transparent to regulators in light of last years Herbalife 'scandal' if you could call it that.

It makes for interesting reading the data is undeniable.

What is shows is that 87.32% of active distributors receive ZERO commission.

Only 0.56% of all active distributors make £2k+ a month

1.12% of all active distributors make £1k+ a month with is almost minimum wage in UK

98.88% of all distributors make less than 1k a month less than minimum wage for the effort involved.

It looks nigh on impossible for this to pay you a decent monthly salary. Well unless you do something different to the 99% of people who seem unable to do it anyway.



She seems to be taking it in at the moment. She respects me in business and knows that data and research is a skill of mine so she is not trying to refute the facts, as yet anyway. An earlier poster mentioned that if those who she respects present her with facts/Opinion which prove it to be an unsustainable business idea and she still wants to go ahead then we are going to have serious issues. Lets see how this pans out, I've got a 2 hr 30 minutes journey with her later, this could be fun!

PotatoSalad

601 posts

83 months

Friday 21st July 2017
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This reminds me of the aggressive N21 expansion in the 90's. I wish you best, hopefully your partner will see through this cult-like "business".

4x4Tyke

6,506 posts

132 months

Friday 21st July 2017
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anotheracc said:
She seems to be taking it in at the moment. She respects me in business and knows that data and research is a skill of mine so she is not trying to refute the facts, as yet anyway. An earlier poster mentioned that if those who she respects present her with facts/Opinion which prove it to be an unsustainable business idea and she still wants to go ahead then we are going to have serious issues. Lets see how this pans out, I've got a 2 hr 30 minutes journey with her later, this could be fun!
I would avoid that discussion during the journey, fraught with issues.

If you are stick and they are carrot, you are going to have a problem.

Instead try the suggestion made earlier, explore new ideas for a realistic business based on something she enjoys doing, genuinely working for herself, something that you can get behind.

Fastchas

2,645 posts

121 months

Friday 21st July 2017
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I would let her carry on tbh.
Let her make her own mistake and pick her up when she's fallen if you care for her. She will never get it out of her system else and will continue to look at these schemes.
Is Amway International still going? I remember someone trying to enrol me in that in the early '90s. Ran a mile!

ymwoods

2,178 posts

177 months

Friday 21st July 2017
quotequote all
EddieSteadyGo said:
Very good questions - I don't know the answer unfortunately.

I do think there is a broader point which I am very concerned about about which is the way our society is heading (to the extent I have sat down with my older son to warn him about the risks specifically).

People who focus projecting this perfect life on instrgram and facebook. This even extends to the "supercar youtubers" who purport to make owning a F12 or 720s an entirely reasonable proposition for the average person in their 20's.

Whether they are looking to gain out of it financially or not, I think it is unhealthy to pretend to young people there is an easy solution to life, that doesn't involve hard work, dedication and effort.

They present an illusion of wealth, glamour and luxury which can lull young people into thinking it is realistic and normal. This could easily cause more vulnerable people to become unhappy when faced with their "own reality" and also could make people borrow more than they are able to afford in trying to pursue the "dream" for themselves.

Edited by EddieSteadyGo on Friday 21st July 12:08
Going off on a tangent slightly...

My generation to some extent (i'm 28) and this new generation of fresh faced kiddies all seem to think they can do 16 hours a week and then be able to own a mansion, super hot GF and a few fast cars...I've worked damn hard to get where I am now, stupid shifts, weeks away from home etc etc and am nowhere near to that (hopefully, a yet can be added tongue out )

Whilst most of my friends have seen the sacrifices and hard work I had to put in to get this far and enjoy some of the rewards, others seem to not understand and just think I have gotten a break and somehow "come" into this magic money tree. They then moan about how they have nothing etc on their part time hours and yet still have 2 holidays a year, every weekend off when I struggle to have more than the odd weekend a year. I can afford a nice car, avg house etc...but have to put in the work for it and I see it more as setting myself up for later in life when I won't have the energy/ability to work those hours anymore. When I try to explain that to them I'm a snob and its just bad luck that they are not where I am now...It actually upsets me greatly that there are people that think this way as I just can't grasp the understanding behind it.

My point is, The whole incoming generation seem to think that with the internet, youtube or whatever that a multi-million-pound idea will just be handed to them and then they can live as they want. For everyone but the very lucky few, that's not how it works and the only way to get to that is hard work.

I can't understand how people can't work out that these schemes, whether the old pyramid or these new slightly rejigged MLM schemes are only making money for the guys/girls at the top...especially if the objective is to convert everyone to a rep...so now all your potential customers are reps and no longer buying the products from you...your now making only a very small margin on their sales...you now have to find even more customers to even get near what you had before, which was a whole lot of nothing...

akirk

5,389 posts

114 months

Friday 21st July 2017
quotequote all
ymwoods said:
Going off on a tangent slightly...

My generation to some extent (i'm 28) and this new generation of fresh faced kiddies all seem to think they can do 16 hours a week and then be able to own a mansion, super hot GF and a few fast cars...I've worked damn hard to get where I am now, stupid shifts, weeks away from home etc etc and am nowhere near to that (hopefully, a yet can be added tongue out )

Whilst most of my friends have seen the sacrifices and hard work I had to put in to get this far and enjoy some of the rewards, others seem to not understand and just think I have gotten a break and somehow "come" into this magic money tree. They then moan about how they have nothing etc on their part time hours and yet still have 2 holidays a year, every weekend off when I struggle to have more than the odd weekend a year. I can afford a nice car, avg house etc...but have to put in the work for it and I see it more as setting myself up for later in life when I won't have the energy/ability to work those hours anymore. When I try to explain that to them I'm a snob and its just bad luck that they are not where I am now...It actually upsets me greatly that there are people that think this way as I just can't grasp the understanding behind it.

My point is, The whole incoming generation seem to think that with the internet, youtube or whatever that a multi-million-pound idea will just be handed to them and then they can live as they want. For everyone but the very lucky few, that's not how it works and the only way to get to that is hard work.

I can't understand how people can't work out that these schemes, whether the old pyramid or these new slightly rejigged MLM schemes are only making money for the guys/girls at the top...especially if the objective is to convert everyone to a rep...so now all your potential customers are reps and no longer buying the products from you...your now making only a very small margin on their sales...you now have to find even more customers to even get near what you had before, which was a whole lot of nothing...
]

to be fair - there are examples where that has happened - so it could happen to anyone... what they fail to see is the statistics and the unlikelihood of it being them! I am involved in helping to run a tennis club / coaching / refereeing - it is the same in tennis (not in our club fortunately) - a belief that little Jonny is going to win wimbledon - c. 100 players worldwide make a living from tennis - maybe only 2 or 3 from the UK - sorry, your child won't be one of them! - we live in a world fuelled by dreams and a lack of reality

Eric Mc

122,024 posts

265 months

Friday 21st July 2017
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28 is about the right age to start complaining about "the younger generation" smile

EddieSteadyGo

11,920 posts

203 months

Friday 21st July 2017
quotequote all
anotheracc said:
What is shows is that 87.32% of active distributors receive ZERO commission.

Only 0.56% of all active distributors make £2k+ a month

1.12% of all active distributors make £1k+ a month with is almost minimum wage in UK

98.88% of all distributors make less than 1k a month less than minimum wage for the effort involved.

It looks nigh on impossible for this to pay you a decent monthly salary. Well unless you do something different to the 99% of people who seem unable to do it anyway.
And without being too cynical you know those figures will be skewed to present the company in the best possible light. So they will have picked the time-frame over which their data is measured, they will have no doubt refined the definition of the term "active distributors" to try to improve the percentages. And are they reporting "profit" or "revenue" for these distributors?

Either way OP, you have more patience than I would have. Hope you manage to persuade her to see the light.

worsy

5,804 posts

175 months

Friday 21st July 2017
quotequote all
The point about removing real work from profile struck a cord. Didn't realise that was the case as an ex colleague (Female) is all over Linkedin with this boll0x.


Fermit The Krog and Sexy Sarah

12,947 posts

100 months

Friday 21st July 2017
quotequote all
anotheracc said:
Well, rather than slag it off or criticise it in anyway I have decided to present her with the facts, this morning!

I've researched and provided citations for my various sources. The company itself now provides a Distributor Compensation Summary on it's website, I think due to the fact they are trying to look transparent to regulators in light of last years Herbalife 'scandal' if you could call it that.

It makes for interesting reading the data is undeniable.

What is shows is that 87.32% of active distributors receive ZERO commission.

Only 0.56% of all active distributors make £2k+ a month

1.12% of all active distributors make £1k+ a month with is almost minimum wage in UK

98.88% of all distributors make less than 1k a month less than minimum wage for the effort involved.

It looks nigh on impossible for this to pay you a decent monthly salary. Well unless you do something different to the 99% of people who seem unable to do it anyway.



She seems to be taking it in at the moment. She respects me in business and knows that data and research is a skill of mine so she is not trying to refute the facts, as yet anyway. An earlier poster mentioned that if those who she respects present her with facts/Opinion which prove it to be an unsustainable business idea and she still wants to go ahead then we are going to have serious issues. Lets see how this pans out, I've got a 2 hr 30 minutes journey with her later, this could be fun!
Just read through the post, and pleased to read this, as it is pretty much what I was going to suggest. IE, you're seemingly successful in business, so she should respect that, so show her the business case, so you demonstrate that you are trying to help her, rather than her just thinking you're being spiteful.

4x4 tyke's suggestion of helping her set up something she'll enjoy, be good at and make some £ is a very good one too. If you lead a horse to water it does actually sometimes take a drink. Why not show her where she can redirect said enthusiasm to better effect, instead of simply taking a wee on her strawberries?

Finally, a thought for those suggesting sacking off the young lady, as it says something about her. She is not the wrong-un here, the barstewards preying on the easily led who are. She is just being enthusiastic about something she can see a future in, even if she's misguided.

anonymous-user

54 months

Friday 21st July 2017
quotequote all
One of my staff has been involved with Forever Living for a while. She is in her late 20s, very pretty and outwardly intelligent.

She works hard for me, however also spends an enormous amount of time and effort on FL, with very little or no financial reward. I feel for her, because one day she's going to realise how much of her own money and time she's spent lining the pockets of a massive bd from the States for zero gain, however it's not for me to try and wake her from the trance.

It's awful and manipulative

Vaud

50,477 posts

155 months

Friday 21st July 2017
quotequote all
williamp said:
Eric Mc said:
Sounds like old style pyramid selling given a fresh lick of paint.

Every generation gets conned to some extent by this scam. It keeps coming around and around.
Ahhh, they say...this is different. Pyramid schemes are illegal. MLM are not.
Bit like Amway? Very carefully positioned...

lastofthev8s

190 posts

90 months

Saturday 22nd July 2017
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Zoon said:
My wifes friend did Forever Living, was supposedly making £10k a month, 15 holidays a year and a new car.
Packed her job in that she'd had for over 10 years to do it full time.

18 months later, working back in an office and getting divorced.
It was Forever Living that the two people I know were / are involved with. Off to look for the latest update....

anotheracc

Original Poster:

29 posts

86 months

Monday 24th July 2017
quotequote all
Fermit The Krog and Sexy Sarah said:
anotheracc said:
Well, rather than slag it off or criticise it in anyway I have decided to present her with the facts, this morning!

I've researched and provided citations for my various sources. The company itself now provides a Distributor Compensation Summary on it's website, I think due to the fact they are trying to look transparent to regulators in light of last years Herbalife 'scandal' if you could call it that.

It makes for interesting reading the data is undeniable.

What is shows is that 87.32% of active distributors receive ZERO commission.

Only 0.56% of all active distributors make £2k+ a month

1.12% of all active distributors make £1k+ a month with is almost minimum wage in UK

98.88% of all distributors make less than 1k a month less than minimum wage for the effort involved.

It looks nigh on impossible for this to pay you a decent monthly salary. Well unless you do something different to the 99% of people who seem unable to do it anyway.



She seems to be taking it in at the moment. She respects me in business and knows that data and research is a skill of mine so she is not trying to refute the facts, as yet anyway. An earlier poster mentioned that if those who she respects present her with facts/Opinion which prove it to be an unsustainable business idea and she still wants to go ahead then we are going to have serious issues. Lets see how this pans out, I've got a 2 hr 30 minutes journey with her later, this could be fun!
Just read through the post, and pleased to read this, as it is pretty much what I was going to suggest. IE, you're seemingly successful in business, so she should respect that, so show her the business case, so you demonstrate that you are trying to help her, rather than her just thinking you're being spiteful.

4x4 tyke's suggestion of helping her set up something she'll enjoy, be good at and make some £ is a very good one too. If you lead a horse to water it does actually sometimes take a drink. Why not show her where she can redirect said enthusiasm to better effect, instead of simply taking a wee on her strawberries?

Finally, a thought for those suggesting sacking off the young lady, as it says something about her. She is not the wrong-un here, the barstewards preying on the easily led who are. She is just being enthusiastic about something she can see a future in, even if she's misguided.
Thanks Fermit/Sarah.

Firstly sacking the young lady off was/is not an option, as you say she is not the wrong-un, she's just being preyed on. I like her as a person regardless of whether she didn't do enough Due Diligence on a business opportunity.

We spoke at length while away over dinner, she got a bit upset as she was not happy in her job(still isn't), really wanted/wants to succeed in life and was presented with this 'opportunity' by someone who taught her at college and trusted. She knew from the outset that it wasn't an overnight route to riches and that she would have to work hard, and she has. She collects approx £400 a month from it but there are costs here so the profit is less than that figure. She now realises that the dream is virtually impossible and she will never earn much more than that however hard she tries. I managed to lay out the facts to her and in credit she listened to what I had to say.

She sees that I am successful, I have what she doesn't, nice house nice car nice holidays and she also sees and is hugely appreciative for the fact that she lives in my house, drives my car comes away with me abroad and generally doesn't have to pay for anything. She says that she just wants to be able to contribute more financially to our relationship and take me away or pay for dinner more often which I admire in her. She also wants to better her own life and have the freedom to run her own business, she thought this could have provided an opportunity for her. She admits that she should have spent more time looking into the pitfalls but was genuinely enthused by the opportunity. This is her FIRST foray into the business world, if you can even call MLM business for these 'distributors'.

I took the advice offered by a few on this thread and offered to set her up her own version of what she does the MLM for and develop a small product line to promote. We discussed all the aspects of MLM that I think hold her back and why this new venture wouldn't hold her back in anyway and she seems to have genuinely bought into it. I stated that I'd want a share and would see it as a business venture as much as helping her out and helping her quit this MLM thing and she seems happy about it.

I am going to suggest that she keeps her MLM live for the timebeing, stops going to the bull5h1t meetings but still fulfils her orders from customers as she is supplementing her income so no point stopping that up until we have the new venture progresses a little bit more, then the MLM becomes a conflict of interest for me so it has to stop, in full.

I'm now actively hating MLM with a passion... To think my partner could have put another 12 months into this, maybe tried another MLM scheme before concluding she would never be successful in life and would have to work a job she hated makes my blood boil. It also p1ss3s me off to think others may have their dreams ruined by these horrible companies. Seems AVON has now switched to the MLM model rather than direct selling too which is a shame as they were the last bastion of hope for some - https://pyramidschemealert.org/has-mlm-corrupted-a...

anotheracc

Original Poster:

29 posts

86 months

Monday 24th July 2017
quotequote all
worsy said:
The point about removing real work from profile struck a cord. Didn't realise that was the case as an ex colleague (Female) is all over Linkedin with this boll0x.
Yep - they do this so that when young girl posts a pic of her new on lease EVOQUE, people in her social media circle think that it's revenue from the MLM that's paying for it. If their occupation is listed as JUNIOR PA then it sends mixed messages and the dream isn't so dreamy anymore

anotheracc

Original Poster:

29 posts

86 months

Monday 24th July 2017
quotequote all
janesmith1950 said:
One of my staff has been involved with Forever Living for a while. She is in her late 20s, very pretty and outwardly intelligent.

She works hard for me, however also spends an enormous amount of time and effort on FL, with very little or no financial reward. I feel for her, because one day she's going to realise how much of her own money and time she's spent lining the pockets of a massive bd from the States for zero gain, however it's not for me to try and wake her from the trance.

It's awful and manipulative
It certainly is. I despise it. Difficult one as it's staff, as long as it doesn't interfere with work then she needs to fall on her own sword.

When it's friends, family or your partner though - you have to take action, as I have done.