3 ms·

Over the past 15 years, I've had the opportunity to work with more than a dozen MLM companies in the UK. This won't be a popular opinion, however I believe grea

Over the past 15 years, I've had the opportunity to work with more than a dozen MLM companies in the UK. This won't be a popular opinion, however I believe great quality products and a self-regulating industry can create businesses that are far from being a Ponzi scheme but are legitimate companies with ethics, great support and opportunity to earn decent money.

mprev 7y ago
What "great products" need to go through MLM? Arguably, it's easier than ever to launch a product direct to buyers. And it's neither easy nor cheap to build a multi-level network of distributors. None of the UK-active MLM schemes I've seen has an ethical reason for using MLM rather than legitimate sales channels. Let's look at some. Cleaning products that are vastly more expensive (in part to fund the MLM commissions) than High Street equivalents. Questionable dietary supplements that rely on woo-woo rather than scientific backing. And of course, electricity, gas, and phone service with the added margin to pay for all those ad-emblazoned Minis and, again, MLM commissions. Maybe it's like communism. People like to say that, on paper, it's a great idea (I disagree but that's not the point). Those same people also say that it has never been implemented properly, and so it's not the fault of the idea that it has always led to national scale human misery. In your view, MLM could lead to ethical companies with great products etc. But the past few decades show that every time it's tried, MLM actually preys on the dreams/needs of the vulnerable, adds huge margins to mostly crap products, and the people who get suckered end up mostly losing money. MLM is a horrible idea that leads to horrible outcomes.
detaro 7y ago
Examples of such companies?
noxToken 7y ago
At the core of it, MLM is a legitimate business strategy to get a relatively unknown product distributed through a network effect. I create a meal replacement smoothie. Some friends want to try it, so I hook them up. Then friends-of-friends ask about this smoothie that isn't available, so I let them sell the product to other people in exchange for a cut. I quickly realize that I don't have the capital for to materials. Product is moving too fast, so I ask them to pay up front for some of the materials. The problem is that this benign relationship that helps both of us can be easily made predatory.
kjs3 7y ago
The only reason I didn't downvote you was you didn't launch into the inevitable-from-an-MLM-apologist "and you can learn more about how to get rich like me by...". The things you "believe" are provably untrue for the majority of unfortunates who fall into the MLM trap. You should be ashamed (I know you won't) for perpetuating those falsehoods.

mprev 7y ago

What "great products" need to go through MLM? Arguably, it's easier than ever to launch a product direct to buyers. And it's neither easy nor cheap to build a multi-level network of distributors. None of the UK-active MLM schemes I've seen has an ethical reason for using MLM rather than legitimate sales channels. Let's look at some. Cleaning products that are vastly more expensive (in part to fund the MLM commissions) than High Street equivalents. Questionable dietary supplements that rely on woo-woo rather than scientific backing. And of course, electricity, gas, and phone service with the added margin to pay for all those ad-emblazoned Minis and, again, MLM commissions. Maybe it's like communism. People like to say that, on paper, it's a great idea (I disagree but that's not the point). Those same people also say that it has never been implemented properly, and so it's not the fault of the idea that it has always led to national scale human misery. In your view, MLM could lead to ethical companies with great products etc. But the past few decades show that every time it's tried, MLM actually preys on the dreams/needs of the vulnerable, adds huge margins to mostly crap products, and the people who get suckered end up mostly losing money. MLM is a horrible idea that leads to horrible outcomes.

detaro 7y ago

Examples of such companies?

noxToken 7y ago

At the core of it, MLM is a legitimate business strategy to get a relatively unknown product distributed through a network effect. I create a meal replacement smoothie. Some friends want to try it, so I hook them up. Then friends-of-friends ask about this smoothie that isn't available, so I let them sell the product to other people in exchange for a cut. I quickly realize that I don't have the capital for to materials. Product is moving too fast, so I ask them to pay up front for some of the materials. The problem is that this benign relationship that helps both of us can be easily made predatory.

kjs3 7y ago

The only reason I didn't downvote you was you didn't launch into the inevitable-from-an-MLM-apologist "and you can learn more about how to get rich like me by...". The things you "believe" are provably untrue for the majority of unfortunates who fall into the MLM trap. You should be ashamed (I know you won't) for perpetuating those falsehoods.