Some advice on MLM (Multi Level Marketing) deals
such as Amway, Shakley, Herbalife, Nu Skin, etc.
|By: Rabbi Eli Teitelbaum|
1) If your joining because you desire to sell the product they provide then better check out how many others are peddling the very same product, how easy it is to sell, what are the potential earnings and how much time will be required. Never take the word of the person trying to sell it to you. Better do your own research!
2) If you are joining in order to resell it to others then its just another illegal pyramid scam and either you will wind up losing your money or the others you sell it to will eventually lose their money. Think about "Lifnei iver lo si'tain mich'shal". (Note: MLM'S become illegal when the emphasis is on recruiting sales people to sell the distributorship to others and not the sale of the product).
3) Don't be misled by the false claims that this is an easy way to get rich quickly. MLM's make these claims in order to sucker you in. Hundreds of thousands of people that have invested in Amway and other MLM schemes, have learned the hard way that there is no golden treasure at the end of the rainbow. In a profile article on Amway in Forbes magazine, it was reported that the average Amway distributor earns a gross profit of around $780 a year. Less than 1% earned a total of $14,000 a year in gross income. As CBS concluded "the company sells hope not soap".
4) MLM's have been around for many years and have been involved in many law suits by people who have lost their entire life savings. Before getting involved, better read up on the volumes of articles on this subject. Read the book entitled "False Profits" (Fax 704-334-0220). Remember! Not all that glitters is gold!
5) Most people misrepresent their true income in order to entice others to join. They prey on some of the most gullible and most financially troubled people in our society. Careful investigations have shown that its all bluff and lies and the only ones becoming rich are the companies themselves. One of the worst MLM's to have hit the market in recent years is JewelWay. The company has now been forced by the FTC (Federal Trade Commission) to return $5,000,000 to those that have lost more than $1,000 each. Since there are more than 150,000 such people, this means that each one of them will get all of $35 back!
6) Hundreds of thousands of people have tried it out and became disillusioned so better investigate it before joining the ever expanding sucker list. Remember! 99% of MLM companies "spike and disappear in eight months". Statistics show that most of those that join don't remain with it at the end of one year. See if you can figure out why?