I don't understand the problem with MLM... I really don't... What is wrong with building a team that gets rewarded for their efforts ?
In reallife there are even companies that offer staff members a bonus for bringing in a good candidate... The idea behind it? Well... Hiring recruitement agencies and headhunters costs a lot of money. So if they want to safe some, they motivate their current staff to give them a hand? Should we file a complaint against these companies? Of course not! It is perfectly normal!
Anyway : This is what they say :
[Multi-level marketing Businesses that recruit members and offer them rewards for recruiting others and/or selling services
I don't understand... It is all about 'protecting the people'... It is about control... That's what it is... People fought centuries for their essential rights of freedom... And now they just accept that companies (probably under the pressure of some governments) suppress them. What has the world come to?
Anyway.. I'm not happy... That's for sure... But that was obvious, right?
Maybe I should start a blog to ease my sences... Surely it will get banned in 5 minutes...
Raspie, the key to this is to determine if the Multi Level Marketing (MLM) plan is a pyramid scheme. Sometimes that isn't all that easy, but other times it is very easy. There are both state and federal laws against pyramind schemes.
I see that you are in China. Everything I'm talking about relates to the multi level marketing situation as it is seen in the United States.
A lot of these programs are really more interested in getting more members to pay to join than they are in selling anything. Some people will make money, but it reaches a point where there just aren't enough people in the world to make it possible for all who join to make money from recruiting new members.
There are many operations that want to distance themselves from any connection with multi level marketing.
If you are really interested in some of the reasons, I have links below to two very detailed reports on problems associated with multi level marketing and one link that takes a look at the legal problems connected with MLM (multi level marketing).
First of all, that I live in China doesn't make a difference. It is illegal here aswell and well... In the US they would fine you, here... Well, let's just say you don't want troubles here...
In any case : wether something is illegal or not should be defined by a central organisation... And hey!!! Look look, they have it in place : They called it courts. But they don't use it...
In any case: I want to start up my affilliate program and for a while I thought about 4-tier program. You are not rewarded for recruiting directly, just when somebody sells in your downline you get a commission on that... Perfectly legal I should say... Well, I reduced it to 2-tiers program for now, because I can't take the risk of being blacklisted... Paypal holds very strange practises on this one for example. There are cases that they even freeze the accounts... No way to determin if they will or not. Some pure hard-core MLM-programs find their way to Paypal, other commission based multi-tiers online shops get blocked... And be honest, nobody wants to take the risk of having is account frozen, right ?
Anyway... What I want to say is this: In some cases cars are used to commit crimes: robberies, hit-and-runs, sometimes even as a weapon by deliberately running over people... Should we just target any driver ? No. When you do something wrong with it, you get sactioned. And courts define wether you are guilty or not. On the other hand if somebody thinks his neighbour is doing wrong with his car, can he take the right in own hands and punish him by locking up in his basement? Because that is exactly what Paypal , google and all those others are doing in my humble opinion. Taking the right in own hands... They should pass the information to the legal authorities and let them handle it. Simple as that. Because blocking you from Google is one thing, freezing your money that is exactly like taking your neighbour and locking him up in your basement. One os called 'taking hostage' the other is called 'theft'...
Another thing is: China has been blamed for a long time for the 'Blame and Shame' - policy... It means they show the criminals publicely in other that everybody knows what they have done... We are not going to turn this in an ethical discussion, but in any case these guys have been convicted by court and then 'Named and Shamed'... In the MLM-case,... you are not even going to court... They just name-and-shame you without any legal procedures... Maybe Western authorities should look into their own yard first... Don't get me wrong, I'm not a Chinese, and I'm certainly not against the western culture... But living as an expat gave me a more open view as I look at it from a distance...
And not everything they tell you is good for you. Don't accept it as it is.
There are laws and rules, and governments have to watch if people obey. If people and or organisations start to take the right in their own hands, it will become chaos in the end. And that is exactly what Google and Paypal and others are doing all the time. They take the right in own hands and put a 'criminal sticker' on something or even take legal reporcautions like freezing your money !
Sorry, but I can't just follow the main-stream in this. I agree that people should be protected, But we have to be very carefull with who can do that or you create chaos.
Sorry if I offend some people by this. I didn't mean to do so. It is just my opinion.
I think the biggest difference is that MLM can be good or bad. But MLM itself has nothing bad about it, otherwise USAToday would not focus a lot on Internet and MLM scheme. Plus I have heard that MLM is a new shcolar discipline that is lectured at some higher educational establishments in the USA - I have many friends living in the USA and know how this country cares about the higher education - they would not allow making MLM studies part of the educational course if this sphere would be illegal.
Still, I think it's a little about hypocracy. I think if a world wide know MLM brand contacts Google with the idea to run payments with their help, Google will gladly say yes, because this will be about processing hundreds of thousands of sales (big MLMs have even more). Where will be the guideline fuss after that? Isn't it better to say that Google will not tolerate scams, etc.
well... that is if it is a pyramid scam... then I say 'YES !!! Get rid of it'... Because there is no added value and it is pure money laundry...
But MLM is Multi Level Marketing... It is not a scam... It is just a way of doing marketing... And like with everything there are allways people misbehaving and using a certain tool in a bad way. Remember my example of the car...
If in my program 500.000 people 'join'... I didn't make any money, unless they sell something. And if they sell, they get paid. So they make money too...
They only thing that is bothering me is : Who will determine wether you are a criminal or not. In my opinion a thorrow investigation should determine that and a judge should confirm that with his hammer. If not : leave the people alone and surely don't freeze their money! As that is a legal reporcauting and it is eligal to do so without court-order. Nomather you are a bank or an online bank. A bank is a bank and you are bound to rules.
The only thing I don't understand is that if such MLM-networks are so strong and like you someone said : if they would approach some company to cooperate with they would comply, why don't they lobby more? Probably to not make it easier on their competitors that are still in start-up...
Anyway.. I'm having delimma here... Should I remain my program 2-tiered, or restore the 4-tier idea or even make it deeper ?
Anyway... I think we are talking of topic here,,, Maybe we should proceed this topic in another post ?
Stephen, I want to comment. My business partner in Sweden made a huge research on MLMs.
You are partially right: 100% right when you say that a small portion of the whole downline makes huge money in MLMs (still, quite many people do decent money). But you are partially right when you say about only the owners and top involved - if I have talents about MLM business, I can get to that top. That would not be easy, but very, very possible.
And isn't it like with all other spheres of life? Only tiny drop of people become fottball stars, but thousands dream about it. Millions come to the Internet thinking that with one click of a mouse they will earn big bucks - and only tiny drop succeeds. Take any aspect of the life where competition is involved and you will see that only those who venture everything for the sake of victory get real fruits.
I think the biggest mistake in MLMs is joining the networks for which you do not feel passion for. For example, I love writing books. And I know that when I come to good MLM on books, I can ignite everyone for it, just via sharing my personal passion about it.
Feel passion for the things you do, fight for your dream, and dream comes true. Remember old song "come on, dream on, boy, your dreams would come alive"
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