Wednesday, June 20, 2012

Reader Question: Are you anti-MLM?

Ban_pyra.gif (No to network marketing).
Ban Pyramid schemes, but not all MLMs are pyramid schemes (though many are)
 (Photo credit: Wikipedia)
Some readers have asked

"Are you anti-MLM? Everything you write seem to be anti-MLM."

This particular question has multiple levels of meaning depending on what else accompanies this question. Very often, this is accompanied by Ad Hominem attacks such as "sour grapes" (i.e. "you must have failed in MLM").

As sour grapes have been handled in a different post, I'll consider the question without any connotations, and answer it very clearly:

I am NOT anti-MLM. 

I am anti-pseudo-MLM scams

I am anti-badly-designed-MLM that is virtually indistinguishable from scams.

I am anti-recruiter-MLM Stars who abuse the MLM they join and turn it INTO a pyramid scheme instead of a proper MLM business. 

Unfortunately, the amount of badly-designed MLMs and pseudo-MLM-scams vastly outnumber the legitimate MLMs. Enough so that some MLM opponents call for outright ban of MLM business model. 

Furthermore, there are sufficient statistics that suggest MAJORITY of people who joined MLM actually LOSE money, when all expenses such as promotional expenses, time spent, and so on have been counted. It is due to the five fatal flaws of MLM that I have previously identified. They *can* be avoided, but vast majority of MLM participants join without being aware of such flaws, and thus, fail to avoid the flaws and lose money. 

I do NOT want outright ban. That's hasty generalization

I do want better understanding by all of the risk factors involved, and how "defenders" of such scams "justify" their promotion of suspect scams with fallacies, omissions, and other propaganda techniques.

That's what I want.

So no, I am not anti-MLM. I am anti-badly-misunderstood-MLM and MLM-like scams. 

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  1. I am in favour of a federal ban of Multi level marking because those who take the financial risk do not receive all the financial rewards.

    I wrote a short essay (600 words) called "The Moral and Ethical Argument Against Multi-Level Marketing." If you would like to read it, I am open to any feedback:

  2. It would never work, Christopher, Republicans support multi level marketing as part of "free business enterprise". Get out and vote these people out of office. But yes, MLMs are horrible. I hate seeing how they devastate people's financial situations and ruin and wreck all their personal relationships with others.