- 5,938
Not in the Insurance world . . .
A hmmmmmm question on MLM
- Thread starter Cornelius
- Start date
Not in the Insurance world . . .
That's the point. Most of the MLMs make you buy the crap that you're going to sell from your upline. There is no inventory in our business, so our structure doesn't represent what would be considered MLM by most definitions (maybe not dictionary definitions but practical ones).
Maybe if you're forced to buy overpriced leads and are captive to the IMO? That could be an insurance MLM structure.
- Thread starter
- #34
- 1,953
Cmon back. The train is about to go off the rails. Pro or con MLM the concept has had a major impact in the industry. Term exploded and many people entered the industry due to the concept.
Did those people who entered the industry actually make any money?
The big problem is, they do sell to those pursuing the opportunity, and the percentage breakdown is not required by regulators unless under investigation. Only 3 out of 10 sales made to those joining an opportunity constitutes an illegal pyramid scheme. Thats why the FTC places the onus on the consumer/public to make that determination.
Factually that is incorrect. You also get paid if the person you recruit buys a policy. And your contract increases are dependent on recruiting performance. Contests also have recruiting as part of the criteria.
Recruiting is key only because recruits are the easiest sale of all. You are essentially recruiting clients under the disguise of an opportunity.
If you want to discuss facts, name the MLM and lets review their Annual Distributor Income Disclosure Statement, or better yet, an SEC filed annual report.
Based on current industry churn rates, all MLMs, even the largest of the largest, would cease to exist within a 2 year period if recruiting was frozen.
