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Published: 25 January 2018

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Top 10 Big Lies of Multi-Level Marketing that fall into the USMS aka US Merchant Systems aka Model Lie 1: MLM company is a business offering better opportunities for making large sums of money than all other conventional and professional models. TRUTH: For almost everyone who invest in MLM turns out to be a losing financial proposition. This is not an opinion, but a historical fact. Consider some notable examples among the largest MLMs, Amway less than 1/2 of one percent make it at an average of $40 a month. Lie 2: Network Marketing is the most popular and effective new way to bring products to market. Consumers like to buy products on a one-to-one basis in the MLM model. TRUTH: If you strip MLM of its hallmark activity of continuously reselling distributorship and examine its foundation, the one-to-one retailing of products to customers, you encounter an unproductive and impractical system of sales upon which the entire structure is supposed to rest. Personal retailing is a thing of the past, not the wave of the future. Retailing to friends directly to friends, family on a one-to-one basis requires people to drastically change their buying habits. They must restrict their choices, often pay more for good, buy inconveniently, and awkwardly engage in business transactions with close friends and relatives. The unfeasibility of door-to-door retailing is why MLM, in reality, a business that just keeps reselling the opportunity to sign up more friends, family and small/midsize businesses. Lie 3: Eventually all products will be sold by MLM, a new form of marketing. Retail stores, shopping malls, catalogues and most forms od advertising will soon be obsolete by MLM. TRUTH: MLM is not new. It has been around since the 60s. Most of the revenue volume is accounted by hopeful new members (sales consultants or businesses) who are actually paying the admission or signup fee to a business that they will soon be abandon. Not only are MLM sales insignificant in the marketplace, but MLM fails as a sales model also on the other key factor maintaining customers. Most customers will stop buying the goods as soon as they quit seeking the “business opportunity.” There is no brand loyalty. MLM’s growth is a manifestation not of its value tot he econmy, customers or disctributors but of the recently high levels of economic fear and insecurity and rising expectations of quick and easy wealth. Lie 4: MLM is a new way of life that offers happiness and fulfillment. It is a means to attain all the good thingsin life. TRUTH: Fortune 100 companies blush at excess promises of wealth and luxury put forth by MLM solicitors. These promises are presented as the ticket to personal fullfillment. overreaching appeal for wealth and luxury conflicts with most people’s tru desire for meaningful work in something in which they have special talent or interest. In, short the culture of this business side tracks many people from their personal values and desires to express their unique talents and aspirations. Lie 5: MLM Spiritual Movement TRUTH: The use of spiritual concepts like properity consciouness and creative visualization to promote enrollement into the new organization and claims the fulfillment of principles. Those who focus their hopes and dreams upon wealth as the answer to their prayers lose sight of genuine spirituality as taught by all the great religions and faiths of humankind. The misuse of these spiritual principles should be a signal of a red flag. Lie 6: Success in is easy. Friends and Relatives are natural prospects. Those who love and support you willbecome lifetime customers. TRUTH: The commercalization of family and friendship relations or the use of “warm leads” which is required in the marketing program is a destructive element in the community and very unhealthy for individuals involved. Capitalizing upon family ties and loyalty to build a business can destroy ones social foundation. It places stress on relationships that may never return to their original basis of love loyalty and support. Beyond its destructive social aspects, ecperience shows that few people enjoy or appreciate being solicited by friends and relatives. Lie 7: You can do in your spare time. As a business, it offers the greatest flexibility and personal freedom of time. A few hours a week can earn a significant supplemental income and may grow to a very large income making other work unnecessary TRUTH: decades of experience involving millions of people have proven that making money in this model requires extraordinary time commitment as well as considerable wiliness, persistence and deception. Everone is a prospect. Every waking moment is potential time for marketing. There are no off-limit places, people or times for selling. Consequently, there is no free space or free time once a person enrolls in this system. Lie 8 is a positive, supportive new business that affirms the human spirit and personal freedom. TRUTH: Most of the materials reveal that much of the message is fear-driven and based upon deception about income potential. Solicitations frequently include dire predictions about the impending collapse of other forms of distribution, the disintegration or insensitivty of corporate American, and the lack of opportunity in other professions or services. Conventional professions, trades and business are routinely demeaned and ridiculed for not offering “unlimited income.” Employment is cast as wage enslavement for ‘losers.’ presents its business as the last best hope for many people. This approach, in addition to being deceptive, frequently has a discouraging effect on people who otherwise would pursue their own unique visions of success and happiness. A sound business does not have to base uts worth on negative predictions and warnings. Lie 9: is the best option for owning your own business and attaining real economic independence. TRUTH: This program is not true self-employment. ‘Owning’ is an illusion. In this Model program ou are forbidden from carrying additional lines of products or services. Their contract makes termination easy and immediate for the company. Participation requires rigid adherence to the “duplication” model, not independence and individuality. You are not a entrepreneurs but joiners in a complex hierarchical system over which you have little control. Lie 10: is not a pyramid scheme because products and services are sold. TRUTH: A sale of products and services is in no way a protection of a anti-pyramid scheme statutes or unfair trade practices set forth in federal and state law. Most MLMs that sell useful, qualify products and services have been successfully prosecuted under anti-pyramid scheme laws by state and federal officials. Recent Court rulings are using the 70% rule to determine iegality. The largest of all MLMs acknowledge that only 18% of it’s sales are made to non-distributors.

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