This is a fantastic thread that was posted on scam.com:
http://www.scam.com/showthread.php?t=142975
It's mind-boggling to grasp the scope of this con's scope. Multi-million and billion-dollar corporations, publicly traded corporations, corporations that put on the guise of being a decent corporate neighbour and innocent "company" (cough) next door, all fall into this category.
Network marketing is a defective and unsustainable business strategy that is effectively supported and fed by individuals at the bottom of the economic ladder. Those at the bottom of the economic ladder must labour in order to fund their goods purchases. After that, the spoils of war are split between the upline and the sponsoring firm. Those at the bottom of the food chain, who rely on income from their work (rather than product sales) to keep the "company" running, form an ever-expanding rotisserie of new employees.
However, despite the fact that the products are of great quality and slickly wrapped, giving the appearance that you are a marketer of these various items, the reality is quite different. In order to gain access into the promised land, you must purchase monthly quotas for personal use and attract as many people as possible. Your true offering is a doubtful "business opportunity," and your true target market is comprised of "opportunity seekers."
A real business is one that markets and sells goods and services to customers. They are able to do so because of real retail sales. They only order what they know they will be able to sell. According to what I've observed, all of these multilevel marketing companies promote recruiting as a passport to the high life. Products and retailing are both meaningless.
Another significant distinction is that a legitimate business owner has ownership of his or her company, which he or she can sell. In network marketing, you own nothing other than your modest product inventory.
The nature of this misleading and broken business model will always leave a large amount of turnover at the bottom of the pyramid structure as a result of its inherent flaws. It's in the nature of the beast, and there's no other way to put it, arithmetic and all. They are the numerous "losers and quitters" and dreamers that hang in there waiting for their ship to come in because they believe in the leadership and sponsor firm. There will always be a constant desire to recruit at the bottom, because it has nothing to do with actual product sales to support the business, but rather with locating and hiring opportunity seekers to work for the company as opportunity seekers. The emphasis is constantly placed on seeking new recruits rather than on selling products to existing customers. As a result, many multilevel marketing companies place restrictions on their associates' capacity to sell the product...which quietly reinforces the company's underlying purpose of recruiting as the major revenue stream, rather than product sales.
They are predatory and prey on the masses by appealing to their desires of luxury and ease of living, especially among those who are experiencing difficulties in their lives. Cough, cough, again. The amount of money required to get started in the "company" is minimal, in contrast to a real business, which requires a significant amount of seed money, some knowledge and assistance, as well as a solid business strategy.
Those few who do manage to generate significant incomes from these schemes must live with the knowledge that their way of life is made possible by the crushed hopes, failed attempts, and losses of those at the bottom of the economic ladder. They conveniently set aside any thoughts of blame after walking on the bodies of their fellow man, allowing them to boast that they worked hard and achieved their goals in life.
There is just no comparison between the network marketing model as a "company" and the actual operation of a "normal?" firm. I understand this because I own a legitimate firm that sells legitimate merchandise.
Network marketing is, without a doubt, the most elaborate con game ever devised. They should all be brought to a halt.
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