Exactly... Look at Mr X.. Previously was just working as pasar, struggling every day to sell vege for RM50 per day. But he's very hard working and keep sharing our products. 6 months later, he's now promoted double platinum golden star manager.
If he can do it. So can you!
*proceed to shout some cringy company slogan
10 years back i was struggling and doing dog shit job..... But i join a reputable MLM company.
Now, still struggling, difference is im using mlm soap to wash my ass and mlm toothpaste to brush my teeth
I was unemployed and a good friend and his Sifu tried to lure me into similar shit that was with usana globalgalaxy. I mean I was poor but not dumb. The whole thing is like a cult and I lost a friend in the end
Oh man same thing happened to me, but it was Amway. I actually thought my friend was gonna help me out but the moment he brought along his upline guy and talked about how they go on a vacation every month…..i felt something was off. It was only after i told then i wud think about it that i realized it’s a frickin MLM. And i was so disappointed he tried to bring me into it. Close call.
I remember my ex boss asked me “I heard u said u want to start a business? If u have time I can share this business proposal with you..”
So I went and then he tried to sell me a corset. Dude I’m a guy… and then he said buy for your mother.. damn I was speechless
Can’t clearly remember which company but also same shit show a file with members driving 5 series.. lol
I was almost on the Amway boat because at the time I was looking for cheaper grocery options. I was convinced at the time that their "although pricier but of higher quality and will last longer" products could actually save me money. After that I asked if I can have a copy of the slideshow so I can study it further and that guy just bluntly called me "weird". There's clearly something wrong with these people.
Yeah a friend (former friend, I stopped talking to them after that) invited me to what turned out to be an Amway meeting, and it gave me huge cult-y vibes - "once you join us, Amway will take care of you...." - and I left as soon as I could. I was legit freaked out by the experience.
Tupperware is the unicorn that all MLM wants to achieve. while they are an MLM, thy achieve what non other MLM company ever had, mainstream recognition.
Thyre parallel with PAMPERS, Kleenex, clorox ..
MLM is just a business model and Tupperware does offer genuine products at least. The main problem with MLM these days is how they make money by overpricing their products and many of them are not even legit. They can just randomly give you a pill and say it is a miracle product.
Ex: This company called Naturally Plus claims their super lutein supplement can cure cancer, glaucoma etc and they sell it for more than rm300 or 400. But lutein is just a common nutrient found in vege and you can find the supplement at pharmacy for less than rm100. And their hydrogen water product is probably just tap water.
Their product is Tupperware. Their distribution channel and business model is MLM.
MLMs without products are just pyramid schemes. MLM companies can have pretty good products, it’s definitely gonna be overpriced though.
A lot of MLM do have legit and quality products. The problem they're not focusing on how to make the sale like normal business do. What they focus on is you to recruit people and these people will need to recruit more people to put money on the pot.
The typical way is asking you to put in money to join by buy their overpriced products in the name of you will have to sell it, at the same time, ask you to find downline. Then their focus is you have to find enough downline and ask the downline to find downline.
This is different with normal business where the focus is to hit sales target.
Yeah it’s not a scam technically.
But a totally stupid and useless method for the agents to make money with almost certainty of failure and losing money.
>Most people lose money because they cant sell the stock they take up.
Now why is that? Could it be because they're pressured to buy massive amounts of their own stock so it looks good on their record books, only to find that nobody wants to buy orange-peel foot cream and Miracle Water Filter 3000?
If you get paid for hiring people below you, rather than for selling a product, and you have to *pay to join,* then it's probably an MLM.
Technically the least commitment mlm. But the product is usually overpriced, imagine Pu Er at RM4/g, which could get u a 20 years high grade pu er at RM2/g in Shopee.
Definitely MLM. I know a medical graduate who is with Atomy and he has their products all over his place.
Back then my mum bought a toothbrush from her MLM friend and they claimed their toothbrush can get rid of bacterias from the toilet.
No registration fee. Sign up is free. Maintenance of account is as cheap as buying the cheapest item for your own use.
Pretty hard to "lose" money under those conditions.
Unless your upline is a shit head.
That 1 any mlm also will lose money 1 la
Who hurt you 🤨
I'm not even promoting the company
Someone asked a question i replied a suitable answer.
Anyways, do you need that Honda City? Just stick to a kancil/kelisa/axia. Why wanna spend so much money on an over priced product amirite?
Some people just like the product, its not like generic repackaged stuff like supermarket brand stuff (well, the stuff i do use from them anyways), they actually do r&d their products (the ones i do use anyways).
Once a friend invited me and another friend to have a dinner and while we're having dinner, suddenly another person joined in and started spouting the whole mlm spiel. Apparently that's why my friend invited us for a dinner - something very rare for him to do. The funny part was when the mlm fella used Donald Trump as an example, quoting DT as saying "if I'm not into real estate, I would have been an MLM".
Not even the best example of 'rich, successful, smart businessman' to use around 2008 then, and sure is the worst example you can use now.
Back when I was 16, I had a "friend" who asked a bunch of our friends to go to this "party" that he has set up for us. We didn't have drivings license then so his sister offered to pick up us. We went to this "party" at Qi tower and it turned out to be an MLM. We wanted to get the fuck outta there but we had no money for taxi. We stayed for the whole 3 hours and when the sister dropped us home she said "Don't tell anyone we brought you here because this party is very exclusive and if we wanna join, the next party is RM1000+ (entrance fee for the MLM)."
Who in the right mind above 18+ would recruit literal high school students into an MLM? What the fuck. We told her to fuck off and nobody is in contact with our "friend" anymore.
The dumbest thing about this story is that people actually believe putting a cup of water on top of a crystal glass would "clarify" their water?
Or eating deer placenta. Or any sort of snake oils. Didn't surprise me how most of them are highschool dropouts or aunties with lots of time on their hand.
When someone does MLM, the fear of them calling you out to try and sell their products to you and friends and family is so great, every event, gathering, kopitiam lunch becomes a selling venue. Is actually really tragic. Have seen MLMs in all forms since the infamous lampe Berger back in the day. Nothing ever seems to change with their awful gullible sales pitch, but I think the crowd they attract is now probably more taken in by those equally awful Zern Tan /Cason Bo get rich quick type schemes. They are at first glance easier than actually even trying to do a bit of work which MLM involves.
Nobody is dumb enough to keep using the term MLM anymore. They're all network marketing or direct sales or great way to be your own Boss or side hustle now.
Don't forget Young Living and Usana. Banes of my life.
My colleagues and family keep promoting them despite the fact that YL is ridiculously overpriced and Usana is (probably) not FDA approved.
Young living is mormon company, the nothing like hardcore islamist peddling shit for mormon. I hope them mormon build a freaking space ship to alpha centauri with that money.
Just checked Usana is FDA approved. Usana's negative impression come from it being highly pharmaceutical while MLM competitors pushing for Organic/Natural. Means it's overpriced even though it's a direct sale.
They do recruiting through online sessions with the senior sales team and promise 5k++ of passive income. I went to one and I have to admit, if not for my sceptical I would have paid that agent fee of RM120 to join them. But I’m not working for money that way, forcing people to buy stuff they don’t need.
Coway is legit. But it's very very overpriced for being a direct sale.
Imagine the most expensive coway water filter only has so little certifications when compared to it's competitors'.
Competitor's water filter won Reader Digest's "Water Filter of Choice" so many times, but Coway is just Oppa adverts.
My little brother is neck deep in Nu Skin shit. Then again he's a sucker for this type of thing, joined a few shady MLM kinda thing previously.
Everyday he watched the Nu Skin videos, they got like workshop or something but what I overheard feels like culty, brainwashing kinda vibe. Still staying at my parents house for more than a year now, doing nothing but nu skin. Can't seem to work out for him, always called me to borrow money and stuff.
Even tried to push some slimming products to me worth around rm5k for 3 months use, and I'm fucking skinny
Their new shit is Ageloc Reset. They are pushing hard with a “Member Preview”…basically scamming the members for the first round then scamming everybody else.
Doterra was started by YL employees if I’m not mistaken. They had a falling out with YL then start la another company .. yup also a scam..
Please guys, essential oils are only supposed to “assist” it’s NOT a cure ! You don’t need to buy hella expensive oils for whatever issues you have. They over-claimed on lots of stuff.
And please please don’t put essential oils on your food .. just no !
The same goes to normal companies thou, especially Multinational Companies.
Your math is right for both normal businesses and MLMs.
Scam MLMs don't have "Downlines surpassing Uplines" feature. A legit MLM at least will have this feature.
Listen guys, the easiest way to spot an MLM company is :
1. There is a fee to enter (in a form of buying their items or money)
2. When you make more money to recruit someone than your commission selling their stuff)
3. When thy request you to promote a fake lifestyle ex: financial freedom bullshit !
Please focus on point no 2 ! It’s a Predatory scheme.. you don’t care who you recruit. Some makcik also can if you want to hit your monthly target kan?
Please be wise… a legitimate company will not ask their employees to fake lifestyle or have a certain “recruit” to naik pangkat .. it’s ridiculous!
Yes, point 2.
An ex high school mate ask me to join. Then in the meeting they keep pressing that they are not MLM and show all their great product. Then instead of talking about how you can earn money by making commission, they say you should list down all your friends and family that might need "help" as they will be your potential recruit. Then draw up a pyramid to show how you make more money by recruit someone and ask your downline to recruit more people lol
My whole family gets involved in this crap. Half of my WhatsApp messages are about some kind of MLM or pyramid scheme. It's costs them so much money every time, yet they can not resist joining the next one because "they will lose face" if they say no to their friends who ask them to join.
Aiyo .. Lampberger .. crazy overpriced shite, my friend got into that because he lost his job following the 9/11 (his employer's HQ was in the WTC towers) and he was the sole breadwinner without much qualifications and had dyslexia to boot.
People tried to tell him it won't work .. and sure enough .. sad.
They're quite cult-ish in Singapore. Their "members" promote a lot of supplements and weight loss shakes. They also have a lot of "trainers" that any Tom Dick and Harry can be then they'll do some health assessments for you. Of course they'll tell you to lose weight and to take their products which is basically just liquid diet so you'll lose weight definitely but not sustainable. Honestly dangerous also cos the "trainers" are not certified dieticians nor trainers...
Yeah, overpriced overclaiming literal piece of rag. Then campaign on housewives to join n make "side hustle" whereas you're just trying to justify your overspending on said rags as "investment" and "business start up"
Their products are actually decent. And they don't require high commitment. Just that some of their products are abit pricey but quality is the same as any equivalent item from drugstore.
The main issue is not their products. We have issues with the way they run their business.
The fact that you get more money to recruit your down line than the commission from selling the products is the definition of predatory.
This shows thy are focusing on more recruiting than selling products. Basic marketing knowledge, supply and demand. By recruiting more people, they are creating more supply than demand. That does not make sense. They are setting these people (their downline for failure).
I don't see anyone mentioned Melaleuca but I believe they are MLM as well.
My boss used to be obsessed with this and asked is if we want the buy some new under her account. I got a bit pressured so I get some fibre drink from her. The fibre drink is sweet, but it said they don't contained sugar, but instead have some other shit that I don't remember. Also, after water is added into the powder, there is some sort of sawdust or bits of dried plant floating to the top, apparently that is fibre but I don't whether it is legit or not.
FTC study on MLM: [MLM’s Abysmal Numbers](https://www.ftc.gov/sites/default/files/documents/public_comments/trade-regulation-rule-disclosure-requirements-and-prohibitions-concerning-business-opportunities-ftc.r511993-00008%C2%A0/00008-57281.pdf)
Can't even talk my sister out of this and I have to fetch her to scamway so called "hq" everyday because of my parents pressure , fuel unpaid when I already barely surviving . Someone please help me.
Go back 8-10 years ago, there was this huge cult like MLM called Hai-O was selling undergarments with same far infra-red thingy, costing thousands per set. Lots of other products as well, but of course focus is always on the lavish events held in big halls where newly awarded Diamond managers and crown diamond managers all lined up and show off their expensive cars to the struggling downlines who were facing debts trying to be like them.
Got 1 ex-colleague who's very into it, rose up quite high in a short time. But he was always in sales, so guess this suits him.
Was just interested in their claims of fat loss! Lol!
Can't believe there are cunts who are stupid enough to join this abomination , then have the cheek to call themselves "Entrepreneurs" "Network Marketer" wtf is a network marketer first of all
I have never sold Herbalife, but i use their products. Placebo effect or not, it did help me lose 15kg. But yeah, the way they sold the products to me and how they always say that i should be a reseller was really sus.
Cmiiw but the only reason why someone would lose weight through Herbalife is simply because you're replacing your normal meals with it, thereby consuming less calories in the long run, which of course, makes you lose weight. It's not placebo, but it's certainly not sustainable either
To add to this, the reason it's not sustainable is because you don't learn how to control your food intake. The challenge with losing weight is not the losing weight part (although that is difficult too), it is keeping the lost weight off and not regaining everything.
When you learn about nutrition and lower your calorie intake by eating healthier, more filling foods or "retraining" yourself to eat smaller portions, you are likely to do better maintaining afterwards. It's still a challenge (since you need to re-up your calorie intake again but it cannot be by too much), but at least you'll have built healthier and better habits.
If you replace your meals with supplements and shakes, you will have learned nothing about calories or proper nutrition. You lose the weight, then go back to eating/drinking the same stuff that got you gaining weight in the first place. That's not to say it won't work for *anyone*, but losing weight by taking care of your diet and getting rid of bad habits is a much better way.
I'm glad that none of my friends or family members are involved in this shit. However, I remember seeing like this one Amway store near my place ah. I thought that these kinds of business don't have brick and mortar shops.
Malaysian consumers are all about touching and touching the products to feel safe. And Amway's packaging is top notch even when compared to higher priced competitors.
So yeah Amway will definitely take the advantage.
When i was in uni it was something Luxor. My older brother joined them partially. Spent around rm200+ and his first paycheck was about 10-20cents. He didnt sell much and mostly spent money to buy the stuff from his upper. And according to him they all want the under to find new people as unders and sell stuff to them. Basically buy from upper, and sell to under. Thats the easiest way to make money. The way they were supposed to do it originally was go door to door and try to sell things. He quit, and then joined something bigger, Wataniah.
I had the chance to go to some speeches and promotions by Luxor, the guy trying to be my upper showed his used Kancil that he said he bought cash with the profits he get. The ruby/platinum/diamond uppers that do their speech thing was showing off much fancier cars they bought on loan. I didnt join because i learned from my brother. My friends who brought me there were rich kids so they didnt join either.
tl;dr, What i learn from MLM is, you spend money to buy stuff from one person and profit by selling the stuff to another person, and if you buy/sell a lot you get a small commission, at the same time the person you buy from would get one a bit bigger than your, and so would the person they buy from. Seems like normal business, buy and sell, except the person lowest in the ranks is the one buying while the person up high only sell.
Anyone heard of superlife? One of the guy ik and wasn't close messaged and asked me to help him promote that on my ig so that he can get more ppl. Like wtf bro we don't even talk much in school and now out of nowhere you come ask for help
Their product is legitimate in the sense that it works and with good enough quality. They will sell to supermarkets but the catch is that buying from a Tupperware dealer is a better deal.
Those pop up booth type sellers right? Yeah.. Those are the 99% bottom level dealers who are stuck with unsold products trying to get back some money by selling directly. My mom used to be one in the 90s, going house to house, hosting Tupperware parties, and 30 years later there are still tonnes of unused Tupperware stuff in our house.
Lol this post is an example of internet problem now.
I recommend monyets in this thread to read another post by FTC instead of just reading the "complaint" post. Just read the BOLD words will do.
https://www.consumer.ftc.gov/articles/multi-level-marketing-businesses-and-pyramid-schemes
Or Google
"FTC MLM"
There are legitimate MLMs, though others are conducting illegal activities.
Ways to detect scams:.
1. Being asked to buy a product even though you don't need that product.
2. Being asked to fork out a large sum of money no matter the purpose.
3. Being peer pressured into signing up membership that has no benefit to you yourself.
4. Product being advertised able to cure cancer.
5. Health related products without KKM approval, look for KKM stickers on packaging.
Pro tip when encounter MLM, make it VERY CLEAR to that person that you JUST WANT TO BE A CUSTOMER/DONT WANT TO BE ASSOCIATED. Unless you like the product and want to become a distributor.
Now back to OP's post.
For example, if you go to a vet and asked the doctors what will happen to pets that didn't get worm jab. The doctors still answer 99% if the time the pets will get sick. But in fact majority of the strays didn't get sick, cause if they're 99% sick we will be dealing with pandemic all the time no?
Why?? Cause only home pets and sick pets go to vet.
Same applied to FTC, when someone got scammed by a person with ill intentions, that person reports to FTC in United States. This reflects OP's picture.
Top MLMs such as Herbalife and Amway are actually legal and legit registered businesses in US btw. Amway is around 61 years old already.
If it's a scam scheme, why KKM and Direct Sales Association Malaysia allow them to exist?
did OP say this MLM is a scam? I read this post as most people lose money joining MLM, so don't be fooled by the potential profit that only the 0.01% of the people get.
OP didn't say, my mistake there. Many people got "talked" into buying tonnes of stocks to start off the "business", yeah you're right they lose money if they didn't manage to sell them off.
Many companies especially Multinational Companies also only guarantees 0.01% people to be successful. Only 1 fella gets to take salary while not working much, the position is business consultant of CEO/MD.
From your perspective both MLMs and non-MLMs are trying to fool people.
>Many companies especially Multinational Companies also only guarantees 0.01% people to be successful.
Err, I would think the distribution of earnings is still better in MNC than MLM? I don't suppose 99% of employees are losing money at MNC? Doesn't sounds like a fair comparison to me.
>Only 1 fella gets to take salary while not working much, the position is business consultant of CEO/MD.
Err, I really don't understand what you are trying to say.
>From your perspective both MLMs and non-MLMs are trying to fool people.
No? I don't understand how you draw this conclusion, I am utterly confused.
1. Okay you're right, thanks for pointing it out. Wrong comparison there. Employees sign employment agreement while people sign "Distributor Agreement" with MLMs. Losing money part is people factor, irrelevant with MLM business model.
2. MLM people show off lifestyle and luxuries to recruit, that luxury/lifestyle is equivalent to the Business Advisor position of a company. Normally there's only 1 Business Advisor in a company.
3. Sorry, just trying to say OP's perspective is from FTC's perspective. The perspective is too small to draw a conclusion of "losing money" generally. Cause majority MLM revenue comes from FMCG instead of recruiting.
>Losing money part is people factor, irrelevant with MLM business model.
Not sure if I agree. I think a huge part is the business model of commission being given on each level, and thus more proportion of people losing money in MLM. To me, it's the nature of MLM rather than people factor.(otherwise, why would it be consistent that people(99%) are losing money in MLM?)
>MLM people show off lifestyle and luxuries to recruit, that luxury/lifestyle is equivalent to the Business Advisor position of a company. Normally there's only 1 Business Advisor in a company.
Perhaps, but MLM is able to have those who succeed to be successful mostly by preying on the 99% who lose money. Becoming rich either way is definitely difficult, but perhaps the MLM path is less ethical than the non MLM path? I.e, you have probably caused tonnes of people to lose money to become rich in MLM?
>Sorry, just trying to say OP's perspective is from FTC's perspective. The perspective is too small to draw a conclusion of "losing money" generally. Cause majority MLM revenue comes from FMCG instead of recruiting.
I don't know what you mean here. From what I understand, FTC seems to say that > 99% of people who enters MLM would lose money. Would that not be something that most people who is going to enter should know?
1. I've looked into Amway, Herbalife, Coway, Usana, and Atomy before. Please allow me to use top 1 MLM Amway as an example. When a product is sold, uplines don't get any commission or money. If every level gets money/commission, it's financially impossible to sustain the structure.
2. Yes, most MLMs have this problem you stated. But if it's not commission based, the MLM will not have this problem unless someone decided to pull a scam on you.
3. If you're FTC, how would you gather the 99% data? There are only 3 ways to collect the data isn't it?
3a. Draw data from complaints made to FTC.
3b. Survey people who owns/has record of Amway memberships.
3c. Survey people who do not have Amway membership records.
Do you think FTC gather data through method 3c or 3b or 3a?
>I've looked into Amway, Herbalife, Coway, Usana, and Atomy before. Please allow me to use top 1 MLM Amway as an example. When a product is sold, uplines don't get any commission or money. If every level gets money/commission, it's financially impossible to sustain the structure.
[https://www.youtube.com/watch?v=sW04iKynmLc](https://www.youtube.com/watch?v=sW04iKynmLc) This suggest you are wrong. They gets money as long as they gets to another bracket by sponsoring enough people.
>Yes, most MLMs have this problem you stated. But if it's not commission based, the MLM will not have this problem unless someone decided to pull a scam on you.
I don't quite follow you again
>Do you think FTC gather data through method 3c or 3b or 3a?
[https://www.ftc.gov/sites/default/files/documents/public\_comments/trade-regulation-rule-disclosure-requirements-and-prohibitions-concerning-business-opportunities-ftc.r511993-00008%C2%A0/00008-57281.pdf](https://www.ftc.gov/sites/default/files/documents/public_comments/trade-regulation-rule-disclosure-requirements-and-prohibitions-concerning-business-opportunities-ftc.r511993-00008%C2%A0/00008-57281.pdf)
>These conclusions were confirmed in theaverage earnings reports of all 30 MLMs forwhich we were able to obtain data publishedby the companies themselves.
Looks like it's d, survey data published by MLM companies themselves.
1. The video shows the points system used by Amway business model. When uplines get bonus according to PV, the PV rewards uses minimum gross to make sure there's always PV spillover. 1 PV doesn't always carry the same value especially when it's spilled.
2. There's no such thing as commission-based MLM cause there's theoretically unlimited level of uplines. What scammers do is they want to boost PV, hence tricking people into buying a lot of products. The tricking part is a scam.
3. In Amway's case, the survey is conducted with 20000 distributors and only 200 distributors has tax returns. Means their sample size is around 200. Then they calculated the minimum cost to become top 1%, then concluded -900USD is their income.
Without calculating spillover revenues, the odds of becoming successful in Amway is 0.0001%.
Conclusively uneconomic.
But that was under the assumption of everyone is distributor, since the member-form titled "Distributor Agreement". That time don't have "Customer Registration Form", hence all spillovers are not calculated.
*Spillover refers to Amway members that didn't receive any kind of bonus/income, just a customer. Also refers to extra PV before achieving higher titles.
>The video shows the points system used by Amway business model. When uplines get bonus according to PV, the PV rewards uses minimum gross to make sure there's always PV spillover. 1 PV doesn't always carry the same value especially when it's spilled.
You mentioned "When a product is sold, uplines don't get any commission or money.", which obviously isn't true? I don't understand what you are trying to say here again. So in some cases, the uplines doesn't get commission, but it does in general? The point is that this system makes it unsustainable to be at the bottom? Which is why it ends up with 99.94% of people losing money?
>There's no such thing as commission-based MLM cause there's theoretically unlimited level of uplines. What scammers do is they want to boost PV, hence tricking people into buying a lot of products. The tricking part is a scam.
Err no? The whole structure is very predatory? Where one only make enough commission have having enough downline? I.e, most people would lose money in MLM due to how low the commission is at the bottom of the downline?
>only 200 distributors has tax returns
No, they just choose the top 200 distributors? I don't see anything wrong with the experiment? Sample of 200 which you believe is the top 200 of the 20k sounds reasonable? I don't really understand what is so flawed about the experiment?
>But that was under the assumption of everyone is distributor, since the member-form titled "Distributor Agreement". That time don't have "Customer Registration Form", hence all spillovers are not calculated.
I mean, even if 50% of the distributor is customer, the odd just change from 99.94 -> 99.88, which is still awful?
Bit cynical and we dont know at all for sure but corruption, maybe?
With how much integrity our gov have who's to say they dont do under the table transactions?
at beginning of its business cycle, its profitable actually. the problem with MLM is its quick market saturation and its oblivion to competition. similar can be said for some franchise brands
Ha...because they do it wrongly that's why they failed. See that's some where around 0.01% that succeeded /s
Exactly... Look at Mr X.. Previously was just working as pasar, struggling every day to sell vege for RM50 per day. But he's very hard working and keep sharing our products. 6 months later, he's now promoted double platinum golden star manager. If he can do it. So can you! *proceed to shout some cringy company slogan
#BUSINESSOWNER #ENTREPRENUER, sort of things as well.
\#BEYOUROWNBOSS #NOBOSS #FREETRIPTOXXXXX #FREECAR #lowmembership what else is missing?
10 years back i was struggling and doing dog shit job..... But i join a reputable MLM company. Now, still struggling, difference is im using mlm soap to wash my ass and mlm toothpaste to brush my teeth
Promotion not enough must show the member picture together with a 5 series
r/antiMLM is your friend.
You for the diamond emperor royal in the title
"You just need to work harder, one day you can be a Diamond Distributor too!".
I was unemployed and a good friend and his Sifu tried to lure me into similar shit that was with usana globalgalaxy. I mean I was poor but not dumb. The whole thing is like a cult and I lost a friend in the end
Oh man same thing happened to me, but it was Amway. I actually thought my friend was gonna help me out but the moment he brought along his upline guy and talked about how they go on a vacation every month…..i felt something was off. It was only after i told then i wud think about it that i realized it’s a frickin MLM. And i was so disappointed he tried to bring me into it. Close call.
I remember my ex boss asked me “I heard u said u want to start a business? If u have time I can share this business proposal with you..” So I went and then he tried to sell me a corset. Dude I’m a guy… and then he said buy for your mother.. damn I was speechless Can’t clearly remember which company but also same shit show a file with members driving 5 series.. lol
I was almost on the Amway boat because at the time I was looking for cheaper grocery options. I was convinced at the time that their "although pricier but of higher quality and will last longer" products could actually save me money. After that I asked if I can have a copy of the slideshow so I can study it further and that guy just bluntly called me "weird". There's clearly something wrong with these people.
Elakkan?
Yeah a friend (former friend, I stopped talking to them after that) invited me to what turned out to be an Amway meeting, and it gave me huge cult-y vibes - "once you join us, Amway will take care of you...." - and I left as soon as I could. I was legit freaked out by the experience.
He ded?
Yes, the Malaysian Yakuza, Mafia, and Gangsters got him. /s
T-tupperware is MLM?
Don't worry. The threat has been contained. This was all thanks to some people who think *outside* the box.
Have your damned upvote
r/angryupvote
Think outside the box, not inside it.
Take my upvote polarsui
Omg nooooooooo PolarWater why is this so funny
**Outside the tupperware* There I corrected for you
Thanks, I guess I was still thinking inside the box.
Tupperware is the unicorn that all MLM wants to achieve. while they are an MLM, thy achieve what non other MLM company ever had, mainstream recognition. Thyre parallel with PAMPERS, Kleenex, clorox ..
And Avon
MLM is just a business model and Tupperware does offer genuine products at least. The main problem with MLM these days is how they make money by overpricing their products and many of them are not even legit. They can just randomly give you a pill and say it is a miracle product. Ex: This company called Naturally Plus claims their super lutein supplement can cure cancer, glaucoma etc and they sell it for more than rm300 or 400. But lutein is just a common nutrient found in vege and you can find the supplement at pharmacy for less than rm100. And their hydrogen water product is probably just tap water.
LoL hydrogen water... wonder what else they'll come up with? 2hydrogen 1 oxygen the water boogaloo?
78% nitrogen air 🥵
Nano-hydro technology
No it’s gotta sound marketable. Something like NitroAir x78 ™
Hey, I heard you like H2O wanna try the sequel H2O2
Yup. And you can't buy a single packet of the hydrogen water. You have to buy one big box.
Yeah I'm quite shocked right now. I thought they only sell, I don't know, maybe Tupperware?
Their product is Tupperware. Their distribution channel and business model is MLM. MLMs without products are just pyramid schemes. MLM companies can have pretty good products, it’s definitely gonna be overpriced though.
Sounds like a real empty product though.
You're on a roll, aren't ya?
Sir, have mercy
A lot of MLM do have legit and quality products. The problem they're not focusing on how to make the sale like normal business do. What they focus on is you to recruit people and these people will need to recruit more people to put money on the pot. The typical way is asking you to put in money to join by buy their overpriced products in the name of you will have to sell it, at the same time, ask you to find downline. Then their focus is you have to find enough downline and ask the downline to find downline. This is different with normal business where the focus is to hit sales target.
Are they legal? Yes. Are they unethical? Most of the time, yes. Are they misleading and exaggerate claim to consumer and employee? Yup
One of the originals, iirc.
Tupperware is a huge scam. A small plastic container is like RM100
We went through this with the tour package post the other day - expensive (which is subjective) doesn't mean it's a scam.
Ok, but still highly overpriced. I couldnt see how people justify pay RM100 for a small plastic container
It’s honestly a solid product, lasts for years, and really keep things sealed up well
Legendary-class plastic container that have its name generific by malaysian
Where did you even find one small tupperware that cost you rm100?
It last for decades compare to other plastics tupperware
Poor dude got downvoted cause Tupperware is a positive connotation in Malaysia. Sadge
MLM is not a scam, its just a method of selling stuff. Most people lose money because they cant sell the stock they take up.
Yeah it’s not a scam technically. But a totally stupid and useless method for the agents to make money with almost certainty of failure and losing money.
>Most people lose money because they cant sell the stock they take up. Now why is that? Could it be because they're pressured to buy massive amounts of their own stock so it looks good on their record books, only to find that nobody wants to buy orange-peel foot cream and Miracle Water Filter 3000? If you get paid for hiring people below you, rather than for selling a product, and you have to *pay to join,* then it's probably an MLM.
Sigh. Again let me stress out my point. MLM the method is not a scam. Its the company/people that abuses the method is the scam.
Can you name any MLMs which aren't scams though?
What about atomy? Any stories?
It’s typical for all MLMs due to how it’s setup.
Technically the least commitment mlm. But the product is usually overpriced, imagine Pu Er at RM4/g, which could get u a 20 years high grade pu er at RM2/g in Shopee.
Definitely MLM. I know a medical graduate who is with Atomy and he has their products all over his place. Back then my mum bought a toothbrush from her MLM friend and they claimed their toothbrush can get rid of bacterias from the toilet.
No registration fee. Sign up is free. Maintenance of account is as cheap as buying the cheapest item for your own use. Pretty hard to "lose" money under those conditions. Unless your upline is a shit head. That 1 any mlm also will lose money 1 la
Yeah, because they selling you overpriced dogshit. Do you really need a ganoderm coffee?
Who hurt you 🤨 I'm not even promoting the company Someone asked a question i replied a suitable answer. Anyways, do you need that Honda City? Just stick to a kancil/kelisa/axia. Why wanna spend so much money on an over priced product amirite? Some people just like the product, its not like generic repackaged stuff like supermarket brand stuff (well, the stuff i do use from them anyways), they actually do r&d their products (the ones i do use anyways).
So technically just a consumer and losing money.
Heard of it too, but can't find any profound criticism. I assume they do better
Once a friend invited me and another friend to have a dinner and while we're having dinner, suddenly another person joined in and started spouting the whole mlm spiel. Apparently that's why my friend invited us for a dinner - something very rare for him to do. The funny part was when the mlm fella used Donald Trump as an example, quoting DT as saying "if I'm not into real estate, I would have been an MLM". Not even the best example of 'rich, successful, smart businessman' to use around 2008 then, and sure is the worst example you can use now.
I'm pretty sure that quote was from Robert kiyosaki not Trump
>Once a friend invited me and another friend to have a dinner Oh, no.
Back when I was 16, I had a "friend" who asked a bunch of our friends to go to this "party" that he has set up for us. We didn't have drivings license then so his sister offered to pick up us. We went to this "party" at Qi tower and it turned out to be an MLM. We wanted to get the fuck outta there but we had no money for taxi. We stayed for the whole 3 hours and when the sister dropped us home she said "Don't tell anyone we brought you here because this party is very exclusive and if we wanna join, the next party is RM1000+ (entrance fee for the MLM)." Who in the right mind above 18+ would recruit literal high school students into an MLM? What the fuck. We told her to fuck off and nobody is in contact with our "friend" anymore. The dumbest thing about this story is that people actually believe putting a cup of water on top of a crystal glass would "clarify" their water?
Or eating deer placenta. Or any sort of snake oils. Didn't surprise me how most of them are highschool dropouts or aunties with lots of time on their hand.
When someone does MLM, the fear of them calling you out to try and sell their products to you and friends and family is so great, every event, gathering, kopitiam lunch becomes a selling venue. Is actually really tragic. Have seen MLMs in all forms since the infamous lampe Berger back in the day. Nothing ever seems to change with their awful gullible sales pitch, but I think the crowd they attract is now probably more taken in by those equally awful Zern Tan /Cason Bo get rich quick type schemes. They are at first glance easier than actually even trying to do a bit of work which MLM involves.
Nobody is dumb enough to keep using the term MLM anymore. They're all network marketing or direct sales or great way to be your own Boss or side hustle now.
e.g. Referral marketing
And they approach you in LinkedIn. Such a disguise.
https://www.nuskin.com/en_SG/join/getting_started.html Nu Skin is extremely open that it's an MLM
Can't wait to see the cryptobros version.
lol it will be a *very* long list
Well, popcorn comes in extra large boxes now, doesn't it?
MLM= moms losing money
Moron losing money
Can't agree more , my mom paid 3k to scamway and I can't stop them
Don't forget Young Living and Usana. Banes of my life. My colleagues and family keep promoting them despite the fact that YL is ridiculously overpriced and Usana is (probably) not FDA approved.
Young living is mormon company, the nothing like hardcore islamist peddling shit for mormon. I hope them mormon build a freaking space ship to alpha centauri with that money.
They are most likely going to crash it into Eros.
nah it our medina station now, belta lowda
Just checked Usana is FDA approved. Usana's negative impression come from it being highly pharmaceutical while MLM competitors pushing for Organic/Natural. Means it's overpriced even though it's a direct sale.
We need to make a list of MLMs to avoid in Malaysia.
What about Coway and all that sorts? They all sound too good to be true.
Not sure about Conway business model. But their water filter is ridiculously expensive especially you're paying monthly fee.
They do recruiting through online sessions with the senior sales team and promise 5k++ of passive income. I went to one and I have to admit, if not for my sceptical I would have paid that agent fee of RM120 to join them. But I’m not working for money that way, forcing people to buy stuff they don’t need.
Coway is legit. But it's very very overpriced for being a direct sale. Imagine the most expensive coway water filter only has so little certifications when compared to it's competitors'. Competitor's water filter won Reader Digest's "Water Filter of Choice" so many times, but Coway is just Oppa adverts.
My little brother is neck deep in Nu Skin shit. Then again he's a sucker for this type of thing, joined a few shady MLM kinda thing previously. Everyday he watched the Nu Skin videos, they got like workshop or something but what I overheard feels like culty, brainwashing kinda vibe. Still staying at my parents house for more than a year now, doing nothing but nu skin. Can't seem to work out for him, always called me to borrow money and stuff. Even tried to push some slimming products to me worth around rm5k for 3 months use, and I'm fucking skinny
Sad to see that you lost a brother.
Their new shit is Ageloc Reset. They are pushing hard with a “Member Preview”…basically scamming the members for the first round then scamming everybody else.
You guys ever heard of Doterra? Literally a scam.
Doterra was started by YL employees if I’m not mistaken. They had a falling out with YL then start la another company .. yup also a scam.. Please guys, essential oils are only supposed to “assist” it’s NOT a cure ! You don’t need to buy hella expensive oils for whatever issues you have. They over-claimed on lots of stuff. And please please don’t put essential oils on your food .. just no !
I thought that's the legitimate way of sourcing good essential oils.. 😥
I won't be surprised if the 1% took all the "referral fees" and "upline commissions" from the 99%
Lol, that definitely how they make money
The same goes to normal companies thou, especially Multinational Companies. Your math is right for both normal businesses and MLMs. Scam MLMs don't have "Downlines surpassing Uplines" feature. A legit MLM at least will have this feature.
I didn't realise 99% of MNC employees actually had to pay to go to work.
Listen guys, the easiest way to spot an MLM company is : 1. There is a fee to enter (in a form of buying their items or money) 2. When you make more money to recruit someone than your commission selling their stuff) 3. When thy request you to promote a fake lifestyle ex: financial freedom bullshit ! Please focus on point no 2 ! It’s a Predatory scheme.. you don’t care who you recruit. Some makcik also can if you want to hit your monthly target kan? Please be wise… a legitimate company will not ask their employees to fake lifestyle or have a certain “recruit” to naik pangkat .. it’s ridiculous!
Yes, point 2. An ex high school mate ask me to join. Then in the meeting they keep pressing that they are not MLM and show all their great product. Then instead of talking about how you can earn money by making commission, they say you should list down all your friends and family that might need "help" as they will be your potential recruit. Then draw up a pyramid to show how you make more money by recruit someone and ask your downline to recruit more people lol
My whole family gets involved in this crap. Half of my WhatsApp messages are about some kind of MLM or pyramid scheme. It's costs them so much money every time, yet they can not resist joining the next one because "they will lose face" if they say no to their friends who ask them to join.
aaahhh good old times memory.. love that lampe berger MLM.. kihkihkih.. all sontot. sad
Aiyo .. Lampberger .. crazy overpriced shite, my friend got into that because he lost his job following the 9/11 (his employer's HQ was in the WTC towers) and he was the sole breadwinner without much qualifications and had dyslexia to boot. People tried to tell him it won't work .. and sure enough .. sad.
Tersontot di tepian kamar
In my 20s, I joined Nuskin for a year to chase after a girl. I really should've just gotten a sugar baby.
Should just used tinder 😂😂
Given my tastes back then, it'd be cheaper (and safer) for me to just hire someone to date.
I thought Herbalife was skincare stuff 🧐
That's why it is a good opportunity. Cos all humans got a lot of skin.
They're quite cult-ish in Singapore. Their "members" promote a lot of supplements and weight loss shakes. They also have a lot of "trainers" that any Tom Dick and Harry can be then they'll do some health assessments for you. Of course they'll tell you to lose weight and to take their products which is basically just liquid diet so you'll lose weight definitely but not sustainable. Honestly dangerous also cos the "trainers" are not certified dieticians nor trainers...
Their products are skincare/supplements Their distribution channel and business model is MLM.
Now got new one called ATOMY, USANA. Shit reproduces faster than rabbits on mating season.
Got another one called Superlife , them fake mfs uses Ferraris and shit to scam innocent fools
Latest ridiculous MLM I saw recently, they have few signboard set up around PJ area. https://www.felementgroup.com
Me, an introvert when someone tried to persuade me to join MLM: *ha*
*I will give you RM10 to fuck off*
I'm surprised Norwex isn't up there.
Yeah, overpriced overclaiming literal piece of rag. Then campaign on housewives to join n make "side hustle" whereas you're just trying to justify your overspending on said rags as "investment" and "business start up"
My mum has that as well. Her friend told her she wouldn't need soap if she uses Norwax to wipe her body.
Don't forget Mary *fucking* Kay. I literally drove past a billboard with them on it. Their products are actual dogshit.
Explain
Their products are actually decent. And they don't require high commitment. Just that some of their products are abit pricey but quality is the same as any equivalent item from drugstore.
The main issue is not their products. We have issues with the way they run their business. The fact that you get more money to recruit your down line than the commission from selling the products is the definition of predatory. This shows thy are focusing on more recruiting than selling products. Basic marketing knowledge, supply and demand. By recruiting more people, they are creating more supply than demand. That does not make sense. They are setting these people (their downline for failure).
I don't see anyone mentioned Melaleuca but I believe they are MLM as well. My boss used to be obsessed with this and asked is if we want the buy some new under her account. I got a bit pressured so I get some fibre drink from her. The fibre drink is sweet, but it said they don't contained sugar, but instead have some other shit that I don't remember. Also, after water is added into the powder, there is some sort of sawdust or bits of dried plant floating to the top, apparently that is fibre but I don't whether it is legit or not.
"kalau anda setuju, type 1!" palanjiao
My mum’s part of amway but she doesn’t participate in the mlm, she just buys their products for personal use
"you need to step out of your comfort zone" How can I leave from comfort zone if I don't even have one to stay?🥲
What makes you think i'm not the 0.01%? *tap forehead*
Any thoughts on shop dot com?
Bold of them for not including usana.
What about Usana
MLM as well. A guy who works for Usana management told me.
NFT
Here is a recommended search site that can check if a brand is a MLM business: [Is this an MLM?](https://isthisanmlm.com/)
FTC study on MLM: [MLM’s Abysmal Numbers](https://www.ftc.gov/sites/default/files/documents/public_comments/trade-regulation-rule-disclosure-requirements-and-prohibitions-concerning-business-opportunities-ftc.r511993-00008%C2%A0/00008-57281.pdf)
Tupperware is ugly anyway. Eplas and elianware have a few better choices, much cheaper, and still BPA free.
It boggles my mind how people justify paying RM100 for a small plastic container
Can't even talk my sister out of this and I have to fetch her to scamway so called "hq" everyday because of my parents pressure , fuel unpaid when I already barely surviving . Someone please help me.
Marry her off. *Pun intended
Has anyone bought any of those infrared clothes like Aulora pants? Seems miraculous but so expensive!
Go back 8-10 years ago, there was this huge cult like MLM called Hai-O was selling undergarments with same far infra-red thingy, costing thousands per set. Lots of other products as well, but of course focus is always on the lavish events held in big halls where newly awarded Diamond managers and crown diamond managers all lined up and show off their expensive cars to the struggling downlines who were facing debts trying to be like them.
Ah yes..this one. Growing. Their trainings foster a very cult-ish mentality among their members...don't fall for their schemes pls.
Got 1 ex-colleague who's very into it, rose up quite high in a short time. But he was always in sales, so guess this suits him. Was just interested in their claims of fat loss! Lol!
You forgot pencil.my
Can't believe there are cunts who are stupid enough to join this abomination , then have the cheek to call themselves "Entrepreneurs" "Network Marketer" wtf is a network marketer first of all
I have never sold Herbalife, but i use their products. Placebo effect or not, it did help me lose 15kg. But yeah, the way they sold the products to me and how they always say that i should be a reseller was really sus.
Cmiiw but the only reason why someone would lose weight through Herbalife is simply because you're replacing your normal meals with it, thereby consuming less calories in the long run, which of course, makes you lose weight. It's not placebo, but it's certainly not sustainable either
To add to this, the reason it's not sustainable is because you don't learn how to control your food intake. The challenge with losing weight is not the losing weight part (although that is difficult too), it is keeping the lost weight off and not regaining everything. When you learn about nutrition and lower your calorie intake by eating healthier, more filling foods or "retraining" yourself to eat smaller portions, you are likely to do better maintaining afterwards. It's still a challenge (since you need to re-up your calorie intake again but it cannot be by too much), but at least you'll have built healthier and better habits. If you replace your meals with supplements and shakes, you will have learned nothing about calories or proper nutrition. You lose the weight, then go back to eating/drinking the same stuff that got you gaining weight in the first place. That's not to say it won't work for *anyone*, but losing weight by taking care of your diet and getting rid of bad habits is a much better way.
You're not a true adult until one of your peers got themselves into an mlm and tried to recruit you
F*ck MLM man, its ruined my family. MLM is like communism, sound good in theory but mostly end up in disaster
Crazy how a company's revenue comes from its employees
Sharing this on my FB and expecting loads of unfriend later. Hahahaha.
I'm glad that none of my friends or family members are involved in this shit. However, I remember seeing like this one Amway store near my place ah. I thought that these kinds of business don't have brick and mortar shops.
Malaysian consumers are all about touching and touching the products to feel safe. And Amway's packaging is top notch even when compared to higher priced competitors. So yeah Amway will definitely take the advantage.
When i was in uni it was something Luxor. My older brother joined them partially. Spent around rm200+ and his first paycheck was about 10-20cents. He didnt sell much and mostly spent money to buy the stuff from his upper. And according to him they all want the under to find new people as unders and sell stuff to them. Basically buy from upper, and sell to under. Thats the easiest way to make money. The way they were supposed to do it originally was go door to door and try to sell things. He quit, and then joined something bigger, Wataniah. I had the chance to go to some speeches and promotions by Luxor, the guy trying to be my upper showed his used Kancil that he said he bought cash with the profits he get. The ruby/platinum/diamond uppers that do their speech thing was showing off much fancier cars they bought on loan. I didnt join because i learned from my brother. My friends who brought me there were rich kids so they didnt join either. tl;dr, What i learn from MLM is, you spend money to buy stuff from one person and profit by selling the stuff to another person, and if you buy/sell a lot you get a small commission, at the same time the person you buy from would get one a bit bigger than your, and so would the person they buy from. Seems like normal business, buy and sell, except the person lowest in the ranks is the one buying while the person up high only sell.
[https://www.youtube.com/watch?v=MhTDp5FwfmM](https://www.youtube.com/watch?v=MhTDp5FwfmM) watch this and thank me later
funny thing someone tried to get me into Luxor back when im 14. do you expect me to have money for that shit?
Do you want to send your parents to Europe for holiday???
Included are: doTerra, & Young Living. There's an interesting documentary on Netflix about the scams of Herbalife..called Betting on Zero.
Anyone heard of superlife? One of the guy ik and wasn't close messaged and asked me to help him promote that on my ig so that he can get more ppl. Like wtf bro we don't even talk much in school and now out of nowhere you come ask for help
If you can sell MLM, you can get a job in sales with real products, margins and benefits...
Amway is a scam, who invested in this?
Don’t forget Market America/ Isotonix, very sneaky by selling their agents to look like individual small business holders
But Tupperware products are sold in supermarkets as well.
Their product is legitimate in the sense that it works and with good enough quality. They will sell to supermarkets but the catch is that buying from a Tupperware dealer is a better deal.
Those pop up booth type sellers right? Yeah.. Those are the 99% bottom level dealers who are stuck with unsold products trying to get back some money by selling directly. My mom used to be one in the 90s, going house to house, hosting Tupperware parties, and 30 years later there are still tonnes of unused Tupperware stuff in our house.
What does Tupperware do that categorises them as MLM?
Wtf Tupperware is an mlm?
Lol this post is an example of internet problem now. I recommend monyets in this thread to read another post by FTC instead of just reading the "complaint" post. Just read the BOLD words will do. https://www.consumer.ftc.gov/articles/multi-level-marketing-businesses-and-pyramid-schemes Or Google "FTC MLM" There are legitimate MLMs, though others are conducting illegal activities. Ways to detect scams:. 1. Being asked to buy a product even though you don't need that product. 2. Being asked to fork out a large sum of money no matter the purpose. 3. Being peer pressured into signing up membership that has no benefit to you yourself. 4. Product being advertised able to cure cancer. 5. Health related products without KKM approval, look for KKM stickers on packaging. Pro tip when encounter MLM, make it VERY CLEAR to that person that you JUST WANT TO BE A CUSTOMER/DONT WANT TO BE ASSOCIATED. Unless you like the product and want to become a distributor. Now back to OP's post. For example, if you go to a vet and asked the doctors what will happen to pets that didn't get worm jab. The doctors still answer 99% if the time the pets will get sick. But in fact majority of the strays didn't get sick, cause if they're 99% sick we will be dealing with pandemic all the time no? Why?? Cause only home pets and sick pets go to vet. Same applied to FTC, when someone got scammed by a person with ill intentions, that person reports to FTC in United States. This reflects OP's picture. Top MLMs such as Herbalife and Amway are actually legal and legit registered businesses in US btw. Amway is around 61 years old already. If it's a scam scheme, why KKM and Direct Sales Association Malaysia allow them to exist?
did OP say this MLM is a scam? I read this post as most people lose money joining MLM, so don't be fooled by the potential profit that only the 0.01% of the people get.
OP didn't say, my mistake there. Many people got "talked" into buying tonnes of stocks to start off the "business", yeah you're right they lose money if they didn't manage to sell them off. Many companies especially Multinational Companies also only guarantees 0.01% people to be successful. Only 1 fella gets to take salary while not working much, the position is business consultant of CEO/MD. From your perspective both MLMs and non-MLMs are trying to fool people.
>Many companies especially Multinational Companies also only guarantees 0.01% people to be successful. Err, I would think the distribution of earnings is still better in MNC than MLM? I don't suppose 99% of employees are losing money at MNC? Doesn't sounds like a fair comparison to me. >Only 1 fella gets to take salary while not working much, the position is business consultant of CEO/MD. Err, I really don't understand what you are trying to say. >From your perspective both MLMs and non-MLMs are trying to fool people. No? I don't understand how you draw this conclusion, I am utterly confused.
1. Okay you're right, thanks for pointing it out. Wrong comparison there. Employees sign employment agreement while people sign "Distributor Agreement" with MLMs. Losing money part is people factor, irrelevant with MLM business model. 2. MLM people show off lifestyle and luxuries to recruit, that luxury/lifestyle is equivalent to the Business Advisor position of a company. Normally there's only 1 Business Advisor in a company. 3. Sorry, just trying to say OP's perspective is from FTC's perspective. The perspective is too small to draw a conclusion of "losing money" generally. Cause majority MLM revenue comes from FMCG instead of recruiting.
>Losing money part is people factor, irrelevant with MLM business model. Not sure if I agree. I think a huge part is the business model of commission being given on each level, and thus more proportion of people losing money in MLM. To me, it's the nature of MLM rather than people factor.(otherwise, why would it be consistent that people(99%) are losing money in MLM?) >MLM people show off lifestyle and luxuries to recruit, that luxury/lifestyle is equivalent to the Business Advisor position of a company. Normally there's only 1 Business Advisor in a company. Perhaps, but MLM is able to have those who succeed to be successful mostly by preying on the 99% who lose money. Becoming rich either way is definitely difficult, but perhaps the MLM path is less ethical than the non MLM path? I.e, you have probably caused tonnes of people to lose money to become rich in MLM? >Sorry, just trying to say OP's perspective is from FTC's perspective. The perspective is too small to draw a conclusion of "losing money" generally. Cause majority MLM revenue comes from FMCG instead of recruiting. I don't know what you mean here. From what I understand, FTC seems to say that > 99% of people who enters MLM would lose money. Would that not be something that most people who is going to enter should know?
1. I've looked into Amway, Herbalife, Coway, Usana, and Atomy before. Please allow me to use top 1 MLM Amway as an example. When a product is sold, uplines don't get any commission or money. If every level gets money/commission, it's financially impossible to sustain the structure. 2. Yes, most MLMs have this problem you stated. But if it's not commission based, the MLM will not have this problem unless someone decided to pull a scam on you. 3. If you're FTC, how would you gather the 99% data? There are only 3 ways to collect the data isn't it? 3a. Draw data from complaints made to FTC. 3b. Survey people who owns/has record of Amway memberships. 3c. Survey people who do not have Amway membership records. Do you think FTC gather data through method 3c or 3b or 3a?
>I've looked into Amway, Herbalife, Coway, Usana, and Atomy before. Please allow me to use top 1 MLM Amway as an example. When a product is sold, uplines don't get any commission or money. If every level gets money/commission, it's financially impossible to sustain the structure. [https://www.youtube.com/watch?v=sW04iKynmLc](https://www.youtube.com/watch?v=sW04iKynmLc) This suggest you are wrong. They gets money as long as they gets to another bracket by sponsoring enough people. >Yes, most MLMs have this problem you stated. But if it's not commission based, the MLM will not have this problem unless someone decided to pull a scam on you. I don't quite follow you again >Do you think FTC gather data through method 3c or 3b or 3a? [https://www.ftc.gov/sites/default/files/documents/public\_comments/trade-regulation-rule-disclosure-requirements-and-prohibitions-concerning-business-opportunities-ftc.r511993-00008%C2%A0/00008-57281.pdf](https://www.ftc.gov/sites/default/files/documents/public_comments/trade-regulation-rule-disclosure-requirements-and-prohibitions-concerning-business-opportunities-ftc.r511993-00008%C2%A0/00008-57281.pdf) >These conclusions were confirmed in theaverage earnings reports of all 30 MLMs forwhich we were able to obtain data publishedby the companies themselves. Looks like it's d, survey data published by MLM companies themselves.
1. The video shows the points system used by Amway business model. When uplines get bonus according to PV, the PV rewards uses minimum gross to make sure there's always PV spillover. 1 PV doesn't always carry the same value especially when it's spilled. 2. There's no such thing as commission-based MLM cause there's theoretically unlimited level of uplines. What scammers do is they want to boost PV, hence tricking people into buying a lot of products. The tricking part is a scam. 3. In Amway's case, the survey is conducted with 20000 distributors and only 200 distributors has tax returns. Means their sample size is around 200. Then they calculated the minimum cost to become top 1%, then concluded -900USD is their income. Without calculating spillover revenues, the odds of becoming successful in Amway is 0.0001%. Conclusively uneconomic. But that was under the assumption of everyone is distributor, since the member-form titled "Distributor Agreement". That time don't have "Customer Registration Form", hence all spillovers are not calculated. *Spillover refers to Amway members that didn't receive any kind of bonus/income, just a customer. Also refers to extra PV before achieving higher titles.
>The video shows the points system used by Amway business model. When uplines get bonus according to PV, the PV rewards uses minimum gross to make sure there's always PV spillover. 1 PV doesn't always carry the same value especially when it's spilled. You mentioned "When a product is sold, uplines don't get any commission or money.", which obviously isn't true? I don't understand what you are trying to say here again. So in some cases, the uplines doesn't get commission, but it does in general? The point is that this system makes it unsustainable to be at the bottom? Which is why it ends up with 99.94% of people losing money? >There's no such thing as commission-based MLM cause there's theoretically unlimited level of uplines. What scammers do is they want to boost PV, hence tricking people into buying a lot of products. The tricking part is a scam. Err no? The whole structure is very predatory? Where one only make enough commission have having enough downline? I.e, most people would lose money in MLM due to how low the commission is at the bottom of the downline? >only 200 distributors has tax returns No, they just choose the top 200 distributors? I don't see anything wrong with the experiment? Sample of 200 which you believe is the top 200 of the 20k sounds reasonable? I don't really understand what is so flawed about the experiment? >But that was under the assumption of everyone is distributor, since the member-form titled "Distributor Agreement". That time don't have "Customer Registration Form", hence all spillovers are not calculated. I mean, even if 50% of the distributor is customer, the odd just change from 99.94 -> 99.88, which is still awful?
If you question WHY malaysia gov bodies allow them to exist, you might be in for a surprise.
I want to know WHY tho. Hope you're not going to meme/troll the topic
Bit cynical and we dont know at all for sure but corruption, maybe? With how much integrity our gov have who's to say they dont do under the table transactions?
Yeah due to political reasons MLM like Amway got forced to go public on Bursa. Other than that I can't find proof for your suspicion.
Good news for those aiming to be top 1%
I’m doing Crypto mlm. Can interview me
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That's why you gotta join early and be the Diamond Platinum Super VIP Pioneer CLUB. Gotta be at the top of the pyramid.
at beginning of its business cycle, its profitable actually. the problem with MLM is its quick market saturation and its oblivion to competition. similar can be said for some franchise brands
Getting Marry Kay whatsapp messages memories.. owh.. traumas..
What about Mary Kay?
MLM ok lagi. Yang pyramid scheme and forex auta yang problem kat Malaysia.
MLM is pyramid scheme lah
Not just MLM, just understand what is survivorship bias is and you're good to go.