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 Why people fear of MLM ?, Do you guy really understand wat is MLM?

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basSist
post Jan 23 2009, 02:03 PM

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QUOTE(milleu @ Jan 12 2009, 09:32 AM)
But the funny thing about MLM is at its core, no matter how you look at it, it's still a pyramid scheme. It makes me crazy how people can't see this simple basic fact. The one who get fooled into this isn't stupid people. I had friends that studies in overseas and quit his job in a multinational company for this. It's terribly silly.

Of course I want to get rich, but there's something off and mathematically does not add up with these things.

Anyway, in my personal opinion it's a pyramid scheme and the same way these people earns money is the same reason why America financial world collapse.

For all it matters, I avoided my friends who join MLM because they seem so obsessed about it.No offense but I think they have been brainwashed or something. In the end greediness takes over people
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Why did you think that all MLM = pyramid scheme? hmm.gif
Where did you determine that?

This post has been edited by basSist: Jan 23 2009, 02:04 PM
basSist
post Jan 23 2009, 03:51 PM

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QUOTE(Vinci777 @ Jan 23 2009, 03:36 PM)
What i think if i were to join a mlm and wat i think about mlm is:

1. Dont ask my frens to join unless they seems intrested. Its not worth to break a friendship no matter the business proposal is good or bad. Some ppl just dont like it so its better to keep MLM away from them.

2. Dont do MLM during yum cha sessions unless they knew u were doing so.

3. If u really think MLM is good and u urself are doing good thus ur frens are intrested, then only spare ur time and explain to them about the structure. Dont approach ppl when ur not even making money urself.

4. If the MLM requires certain amount of investment, suck it.

5. Some ppl join MLM because they personally use the product themselves. If ur fren or family saw u using and wanted to use the same product, u can either buy if for them or ask them to be member to recieve member price. If they are under u, u will earn a little commision as well. It is a good thing unless ur family and friends are sellfish that even they wanted to use the product, they refuse to let u earn. ( MLM works like this? im dont know about MLM too much)

6. I think MLM is like normal business. U as ur own boss sell products at first. Then u recruit ppl to sell ur products. They will get the full profit and u will earn a little from them without effecting their income. E.g their sales is 10k. Their profit is 5k. Ur commission is 5% which is 250. Conclusion is they earn 5k and u earn 250. Its still a win win situation for both. Unless the downline is unhappy that the top earn 5% without doing anything, then he is a selfish downline. Why do any1 want to care about how much other ppl earn if they themselvs are satisfied with their income MLM gives them and so. ( is my example describe the commsion concept of MLM at first? im unsure myself)

7. I dont do MLM coz i dont like to do sales/sell products and have a stable job atm.
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Agree with your no.6 statement. You're an open-minded person, great~ smile.gif

QUOTE(sweet_pez @ Jan 23 2009, 03:42 PM)
I'm very against MLM... I'm a Marketing grad myself but this is more like a pyramid selling scheme. The one sitting on top will be the boss anyway~~~

And yah, trust me when I say most of them who is in MLM loses friends very often. Even those whom are closest to them. I have a friend who do part-time Amway sales and me + other classmates dread having him for our gathering. He'll spoil our time with his products and asking us details on our health conditions and what not. I'll call it purely annoying. No matter how many times we tell him NOT INTERESTED, the word doesn't seem to register.
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Why do you think that MLM = pyramid scheme? Where did you get that thought?
basSist
post Jan 23 2009, 04:01 PM

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QUOTE(milleu @ Jan 23 2009, 03:54 PM)
where? okay I know their product is good and all that.

but when they're approach you right, what do they actually selling for? The membership or the product?

The product is a side notes to make you think this isn't a pyramid scheme.

How many of those people you know rise the ranks through selling the products? I'll bet a lot more people rise through the ranks by getting people to join.

With a lot of agent, and competing for the same market...the marginal profit isn't that  high. If you learn basic econs or even if you didn't, when there's so many people offering the same product..logically the price of the product is supposed to decrease.

Are we seeing the product price decrease? The demand for it is inelastic(meaning not changing), but the product is being produced more and more so how come we don't see the market awash with product or the decrease of the price?

How come we only see more people becoming the agent? This proof the fact that the PEOPLE is the product.

Anyway I don't mind people join MLM only for the sake of selling the product or using the product.
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oh.. yes, I agree with what you said. But i'm not so clear about the basic econs thingys, i was an engineering student. hehe need to learn from you.

QUOTE(Vinci777 @ Jan 23 2009, 03:56 PM)
Yea..if the ppl who is doing MLM arent using the products themselves,

is like CEO of McD eating KFC everyday.
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hm.. i bet the boss of McD (franchisor family) does not expand McD business because they like to eat burgers, i think because they knows the trend of fast-food trend that bring convenience to nowadays people.

This post has been edited by basSist: Jan 23 2009, 04:02 PM
basSist
post Jan 23 2009, 04:04 PM

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QUOTE(alanyuppie @ Jan 23 2009, 04:02 PM)
Annoying is the least of the problem. the main problem is they pretend to care about our health and whatnot, but in the end,.. its just another business from us they're after. talking about real friends indeed.

MLM baits people easily coz in the powerpoint/presentation material.. its all about "dream" car, "dream" house", "dream" life."Dream" vacation, at the same time, making blankets statements to belittle normal paid jobs, saying no future/no prospect/high risk/. And they further increase their scum-ness atttitude by brainwashing people regardless of their age (ESPECIALLY the youngers ones). if they want destroy their own son nvm, but don';t destroy young people's inspiration towards their future and what they want to become, and ITS NOT ALWAYS about  being driven in a not-paid-fully mercedes, and entering hotel /seminar halls in a rented tuxedo mingling with same ($) minded people who thinks each one of them will own a bungalow in 10 years time.  It's all show and no-brain/conscience activities they are involving in. syok sendiri.
If I'm a dad and see my 18 year old just finished SPM son having MLM fren, I will put a shotgun on the table where he perform in "brainwashing", as a signal he should scram or being vaporized to bits.
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I hope we can discuss more facts than myth.
basSist
post Jan 23 2009, 04:09 PM

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QUOTE(milleu @ Jan 23 2009, 04:05 PM)
hahaha I'm an eng as well. majored in chemical engineering

but  in college I like taking random classes such as psy,philosophy and econs...which is why is really good actually because then..

you can understand how people try to influence you(psy),philosophy(how to counter their logic) and econs( understand the basic system works)
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wow, you are so talented notworthy.gif

I found this video from youtube, would you mind help me to watch it and tell out your opinion? smile.gif


basSist
post Jan 23 2009, 04:19 PM

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QUOTE(milleu @ Jan 23 2009, 04:15 PM)
i'm not that talented...just have a wide interest...

can't really watch the video now. in the office currently tongue.gif
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Try to watch it when you back to home biggrin.gif

QUOTE(Vinci777 @ Jan 23 2009, 04:16 PM)
true. But they have a strong reason as u stated - fast-food trend that bring convenience to nowadays people.

Some MLM ppl jus explain about the money thingy and promise luxurios life ahead and put the products talk aside where the product itself is the selling point and some didnt really use the product or sell it themselves. They rely on the downline too early when they didnt even put much effort.

Those are the one who sit in the failure group. Those who sucess in MLM have a balance in promoting products themselves at the early stage and getting hardworking downlines, motivating them, guide them etc. Not those some people dat jus decided to make quick money from MLM and trying to get downline to sell products which they dont sell in the beginning.

If one wants to involved in MLM, dont listen too much of what ppl say. What we need to know is a reasonable and logic structure to make money rather than ppl telling us by doing so we will get money.
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yea , totally agree with what you said. smile.gif

Try watch the video in the previous post by me, we can try to discuss it further laugh.gif

This post has been edited by basSist: Jan 23 2009, 04:22 PM
basSist
post Jan 23 2009, 04:39 PM

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QUOTE(milleu @ Jan 23 2009, 04:22 PM)
okay i'm half way past the video. it's basically reiterating the same MLM agent that tried to convince me said.

Just the reason of having a product or existing product sold is not that strong enough arguments.Like come on la, you can only give me 1 reason for this thing to be legal and to handle my objections?Oh yes they mentioned about Amway right? At least I've heard Amway and know what they are selling for more than 10 years.

The business scheme might be legal. But currently, how on earth are they making 20k per month just by selling the product?

now that is the reason i'm having problem with this scheme.

prove it to me, you're making money from products, that 80% of your income comes from YOU selling your product, not by downline or whatever crap they're calling.
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I don't think the author is and IBO from Amway. He is just giving history about the industry. As i know Amway (Malaysia) has been operating in Malaysia for more than 30years.

"How they making 20k per month just by selling the product?" ha.. i can't help you determine on this maybe u have to seek from Amway (M) about the information i guess they are willing to show you.

hm.. why have the upline selling most of the product and not by downline? maybe you can check Vinci777's previous post...

http://forum.lowyat.net/index.php?showtopi...post&p=23211056
QUOTE
6. I think MLM is like normal business. U as ur own boss sell products at first. Then u recruit ppl to sell ur products. They will get the full profit and u will earn a little from them without effecting their income. E.g their sales is 10k. Their profit is 5k. Ur commission is 5% which is 250. Conclusion is they earn 5k and u earn 250. Its still a win win situation for both. Unless the downline is unhappy that the top earn 5% without doing anything, then he is a selfish downline. Why do any1 want to care about how much other ppl earn if they themselvs are satisfied with their income MLM gives them and so. ( is my example describe the commsion concept of MLM at first? im unsure myself)

basSist
post Jan 23 2009, 04:41 PM

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QUOTE(Vinci777 @ Jan 23 2009, 04:35 PM)
However if u dont like sales like i do, no matter wat our MLM friends try to convince us, they never success  rclxms.gif  rclxms.gif
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yes, it is about choices. flex.gif
basSist
post Jan 23 2009, 04:51 PM

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QUOTE(sweet_pez @ Jan 23 2009, 04:40 PM)
Alan>> Right. Annoying is an understatement... back in College, there was this classmate who pestered me to no eternity that I finally went to his Lampe Berger office with him. Talk about extravagant... the consultant told me that they are actually MLM though registered under Direct Sales. I mean heck, it's DIRECT SALES.

basSist>> Okay, boss on top recruit 5 people (we call them A, B, C, D, E)  who each pays RM 2000 (one month's salary, for god's sake!) for some.... say, car polish. These ABCDE will then be told to each recruit another 5ppl  each (to which every people they recruit they'll get commission). So let's assume A recruited FGHIJ. A will be told that for every single people F, G, H, I and J recruit, A will get commission. And so on and so forth...

Don't you see the base expanding? I see no other more fitting name than pyramid.

Of course, if you see it from a biz point of view, it's a strategy/ tactic of how people get others to buy your stuffs. But in my POV, it's getting out-of-handly unethical. MLM experts always have their points to lay... and great things to say abt their business.

What we observe in MLM is that they have caused a lot of arguments in families (money), relatives, friends etc. It also caused a negative impact on society (ppl might steal, use other illegal means to obtain the RM2000 to join membership)... and there's no telling whether ppl actually benefit from the expensive product(s). Plus, we get some desperate ppl who could not make a living with it and wanted to withdraw but couldn't refund the product they bought (equalling to unable to retrieve the RM2k they paid). And they feel cheated.

In any job we do, we don't have to pay any money because the employer is supposed to pay us for the effort we put into work. In cosmetic companies etc they sell really expensive stuffs. They don't make their staffs purchase their product for RM2k and then make them recruit/ convert others.

Gosh, I wonder why we're having this discussion again. Didn't we have an anti-MLM thread somewhere? It's annoying to have a repitition of topic and arguments. I suggest sumone post the link and let basSist go thru the whole thread then pose his argument.

There's millions and billions of people with very diversity views. Some might say MLM is great for them while others despise it. What is your point? There's no need to explain any further, most of us here are firm with out views and we've had enough explanation/ discussion over this in other thread. TQ.
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wow thanks for explaining. I found out MLM is one of the legitimate business model to distribute products. and it is proven to be legal. But have to differentiate the true MLM from any unethical scheme/activities.
QUOTE(milleu @ Jan 23 2009, 04:43 PM)
My friend invest 40k in this MLM thing. The more you invest the higher is your rank.

Their product is so freaking expensive. I don't see a lot of people buying it and yet they have so many agent.Are you really sure they got their income from selling product?

Can we actually compare construction business and this? At least your boss manage people. That's what being management is all about. In MLM, if you're on the top..do you manage your people? Basically what you do is look and wait for your downline get more followers and take a percentage of it which is money.

In usual working environment, do our boss take our salary? What we work for is not ours,it's owned by the company
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sweat.gif i think true MLM doesn't need you to invest that much shocking.gif
basSist
post Jan 23 2009, 05:01 PM

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QUOTE(milleu @ Jan 23 2009, 04:51 PM)
Oh well, the reasons why I keep on opposing this would go on forever.

I'm a bit lazy to have this kind of arguments.

yeah truest MLM probably wouldn't need you to invest that much..but people are skewing this business to something that I find highly objectionable.Hence the opposing of me joining this business
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hm.. I also kena many friends to ask for a presentation of MLM companies, I gave them chance to present to me. But i never join one of them because they were asking like RMxxx~RMxxxx fees.

oh ya i got one good friend, he was doing it for one MLM company and earned most RM18k/month then he quit. He told me not to participate in certain MLM companies, but recommended true MLM companies to me if i really want to join. Quite useful information from a good friend that actually participated well in this industry, because of he actually participated, he knows what's bout this industry roughly.
basSist
post Jan 23 2009, 05:56 PM

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QUOTE(sweet_pez @ Jan 23 2009, 05:44 PM)
And tho MLM is so-called legal in M'sia, it doesn't seem to gain wide acceptance - considering the number of ppl against it is increasingly aggressive.
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MLM is legal in Malaysia and also in Singapore (They were starting to accept the true MLM companies to enter 5 years back i think).

because of many 'quick earn money scheme' and also 'do less earn much' attitude that basically found in most of the people especially nowadays, the unethical activities drive the increment of people who against it aggressively.

Just like milleu said,

QUOTE
but like I said, it has turn into something else.


Give your friend a chance to talk about the plan, products to you is also giving yourself a chance to learn more.

When u find something unethical just rejected them. Don't hate it, just differentiate it.
basSist
post Jan 23 2009, 06:09 PM

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QUOTE(work_tgr @ Jan 23 2009, 06:00 PM)
I would like to give my friend just ONCE time to explain it. However, I found that if that chance was given, there will be endless stories about the product, meetings etc. sad.gif *u know what I mean ?*
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yea, I understand because I got the same experience.

If that was a ethical activity (like u mentioned: meetings) then give it a try. How to define ethical: they don't ask you bring money go meeting and don't keep asking you to buy products. They only presenting products and explaining the function and how it works.

and maybe it's not something talking about products? who's knows so why not give your friend a chance to follow them. and IF you found something unethical about the activities, pull your friends out. Of course u need to get some provable documents to show to your friend.

This post has been edited by basSist: Jan 23 2009, 06:17 PM
basSist
post Jan 23 2009, 06:23 PM

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QUOTE(work_tgr @ Jan 23 2009, 06:16 PM)
Oh my doh.gif ... if MLM people only give free talk, what actually are they doing ? I mean, the only purpose for them to invite you for the meeting is to ask you to buy the thing. What else ?

Actually, for me if I want to attend their meeting, I am ready to buy, at least one item with the cheapest price  tongue.gif . Like Cantonese said "bong chang" (support friend a bit).
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smile.gif You gonna find out yourselves what actually are they doing, hm i meant those successful guys. I bet that if you want to learn swimming, you wouldn't find someone that don't know how to swim after learning it for 3 years and instead finding those who learn it for 3 weeks then swim like a Olympic-fish laugh.gif
basSist
post Jan 23 2009, 06:48 PM

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QUOTE(work_tgr @ Jan 23 2009, 06:37 PM)
Well ... I'm not actually want to learn anything. Opps ... is it supporting the product a mistake ?
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laugh.gif Just an example for you to seek for correct information from correct person. One more example:

If you sick, normally u will look for a doctor and definitely not a lawyer. And of course there's ethical doctor and unethical doctor (Can say there's scam from doctors.)

Therefore in MLM industry, the situation occurred in opposite way. Because we don't look for MLM people, but MLM people look for us. We need to have differentiate them.


Added on January 23, 2009, 6:51 pm
QUOTE(sweet_pez @ Jan 23 2009, 06:44 PM)
Unethical = the people there.

Do you think that persuading people to buy something they don't need and misleading them is ethical?

Persuading - with all those Marketing talk, some ppl get influenced VERY EASILY, only to regret later that they actually don't need it and couldn't make it work. What's the reason these ppl influence them? For their own pocket money. They don't care for anything else but the other person's money. Doesn't matter if the girl/ guy will need to borrow from loan shark - it's not their concern. Who cares if the family lost the 2k they have so carefully saved up for emergency usage? MLM is more important... priority mah...

And how they got influenced? Misleading info. MLM ppl made it sound SO easy to recruit ppl under them - u know, like with the snap of a finger. But that's not true. You paid RM2k for some prod u don't need/ want, then you've got to get friends/ relatives/ family into buying the very same thing you don't need/ want. WTH?

Seriously, I'm wasting a lot of my precious time here. milleu is right, shouldn't be bothered to explain further.

This is my last post here.
Happy Holidays everyone!
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Every industry has their bad and good. Try to look forward the good and not only the bad. cheers!~ smile.gif

This post has been edited by basSist: Jan 23 2009, 06:51 PM
basSist
post Jan 24 2009, 03:33 AM

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QUOTE(Exhdpm @ Jan 23 2009, 11:36 PM)
MLM is like ponzi scheme....as what I understand...the 1st ones (who join when program new) get the best...the belakang ones....only scraps...  biggrin.gif
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wow really? I wonder why such ponzi scheme can last in the world for so long under same company hmm.gif
basSist
post Jan 24 2009, 11:23 AM

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QUOTE(robertngo @ Jan 24 2009, 07:12 AM)
because there is idiot born every day, ponzi scheme will fail when people stop joining. like the Madoff case which run for decades.
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all MLM = ponzi scheme. then MLM should not be stated as legal in the US Law and should be banned from any of the countries. but, why US government approved this industry since 1979?
basSist
post Jan 24 2009, 12:59 PM

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QUOTE(work_tgr @ Jan 24 2009, 12:51 PM)
yeah. Oh legal MLM will be approved by law.
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rclxub.gif Seems like most of the people does not understand what is MLM sweat.gif including me, confusing

This post has been edited by basSist: Jan 24 2009, 01:00 PM
basSist
post Feb 2 2009, 03:06 PM

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QUOTE(wingcross @ Feb 2 2009, 02:02 PM)
one more thing, those who join MLM, formed a group agency, can this agency been inherited to his children if let say he retired ?
i dun think can rite ? unless he pull his children to be agents as well ... and the cycle keep going.
then there is no retirement liaw.

Even If i open a burger stall, if my son want to continue my business, he can right ?
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Please refer to those MLM experts, those who create their network with real inheritance example, those who tried it and succeed it.

There are 3 types of authors:

1. Those who had never done it.
2. Those who had done it and failed.
3. Those who had done it and succeeded.

I found most of the people are from no.1 and no.2,
they never done what they're writing and talking about and,
they failed at what they're writing and talking about.

Try to determine valuable information from the right persons. (as i know, none of them here qualify to give u valuable information)

This post has been edited by basSist: Feb 2 2009, 03:09 PM

 

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