A hmmmmmm question on MLM

[pfg1]

Amway and other companies were WAY before ALW.

I don't believe all MLM are bad or pyramids, that's simply not true. However many more are bad than good, and they typically weed themselves out. The structure is no different in insurance, real estate, or many other traditional businesses or franchises... there is always someone making money on your work. Its just that is there value coming from those who earn that override (in any business). Also, is there a legitimate product / service that is being sold. Some MLM are pure ponzi, no product at all. They don't last long, and the people who start them usually end up in orange.

 

[myinsurebiz]

Pyramid schemes pre-date MLM. And that’s all a MLM is. A legal way to do a Ponzi (pyramid) scheme is a MLM.

Incorrect.

A ponzi scheme doesn't market a product to people that are outside the scheme. It feeds off the last person in . . .

A correctly structured MLM or NWM concept - sells an actual product and shares the gross profits with those that "sell" or "market" the products to people that don't participate in the comp plan.

Nothing wrong with MLM or NWM so long as there is an actual product being bought and sold by other consumers.

 

[myinsurebiz]

If that is the case or definition, we in the insurance business might have started MLM or Ponzi. Company hires Agent, who becomes sales manager who becomes General Agent who become Region Director who hires appoints a General Agent, who hires sales managers & recruiters who recruit & train new agents.

New agents make a sale, Sales Managers get an override, General Agent gets an override, Regional Director gets an override.

As much as I dislike Primerica & ALW, the chassis of most traditional insurance companies is not that much different. Albeit, the traditional methods focused much more on the sale of the product compared to the sale of getting more people to buy into the system

Exactly. We just call it a hierarchy . . .

 

[vic120]

Incorrect.

A ponzi scheme doesn't market a product to people that are outside the scheme. It feeds off the last person in . . .

A correctly structured MLM or NWM concept - sells an actual product and shares the gross profits with those that "sell" or "market" the products to people that don't participate in the comp plan.

Nothing wrong with MLM or NWM so long as there is an actual product being bought and sold by other consumers.

This should be your theme song

 

[Guest - 73894]

Many companies let you go direct. With a MLM you sign up under someone and they get paid by you paying money and signing up. They don’t make much by selling their products and are taught everyday to sign up your friends.

I know this is not new info to you and I do agree that some insurance companies are set up this way. But, I only choose to be in a hierarchy for the benefits of lower seminar cost. Otherwise, I would just go direct.

Actually when a person signs up, the person who signs up that person makes $0. The only time you get paid is if that person sells something. Oh, and if there's a chargeback, you also get the chargeback.

 

[DHK]

As much as I dislike Primerica & ALW, the chassis of most traditional insurance companies is not that much different. Albeit, the traditional methods focused much more on the sale of the product compared to the sale of getting more people to buy into the system

The difference is in the compensation of the agent who sells, but never recruits.

A traditional agency pays about 55%... while the new agent in these programs start out at about 25%. And typically, if they want an increase, they have to recruit.

 

[vic120]

Incorrect.

A ponzi scheme doesn't market a product to people that are outside the scheme. It feeds off the last person in . . .

A correctly structured MLM or NWM concept - sells an actual product and shares the gross profits with those that "sell" or "market" the products to people that don't participate in the comp plan.

Nothing wrong with MLM or NWM so long as there is an actual product being bought and sold by other consumers.

Honestly even if they have a product that sells If recruiting is more important then the product, It says a lot about the product and the company as a whole

 

[Chazm]

Incorrect.

A ponzi scheme doesn't market a product to people that are outside the scheme. It feeds off the last person in . . .

A correctly structured MLM or NWM concept - sells an actual product and shares the gross profits with those that "sell" or "market" the products to people that don't participate in the comp plan.

Nothing wrong with MLM or NWM so long as there is an actual product being bought and sold by other consumers.

Ok buddy. You can have your opinion and I can have mine. IN MY OPINION MLM is just a legal way to make a pyramid scheme.

 

[Chazm]

Actually when a person signs up, the person who signs up that person makes $0. The only time you get paid is if that person sells something. Oh, and if there's a chargeback, you also get the chargeback.

Yeah, I’m not sure why I said they get paid by you signing up under them. I meant the only way you get paid is by having people under you and they sell, the people they put below them sell...etc etc

 

[myinsurebiz]

Yeah, I’m not sure why I said they get paid by you signing up under them. I meant the only way you get paid is by having people under you and they sell, the people they put below them sell...etc etc

Which is no different than how the Insurance industry is set up now.