Friday, March 19, 2010

If you're working for MLM, you're probably gullible.

Whoa, what a statement. I've been recently approached by an acquaintance, who told me that his friend is opening a shop at Marina Square selling diamonds, and insist I come down to take a look and probably to help him out.

After reaching there, I realise it was all too familiar. Multi-Level-Marketing (MLM), otherwise known as network marketing, referral marketing or pyramid-selling.

I could still remember my first encounter with a MLM company, called the Sunshine Empire, whereby you would be able to see lavish decorations, filled with opulence and decadence in the company.

People as young as 19 years old were wearing suits, and looking smart, with titles given to them as mangers and directors. HECK, some of them even had their own offices.

The person who tried persuading me to buy their products were extremely persistent, but definitely annoying. I was required to pay an amount of $500, which I was promised to earn a lot of money, like $5k per month.

I rejected him ultimately of course.


This time round, I was fooled into going into this MLM company again, and allow me to break down the things he tried enticing me. (WITH MUCH SKEPTICISM)


1. Brought me to this office, showing me his products and that their opening a shop in Marina Square. (Ok, still sounds alright.)

2. Had this lesson attended by 4 people. I nearly fell asleep. The guy was telling about how good the products are, and how it is endorsed by many celebrities.
(Listen, celebrities endorse products for money, and they do not necessarily have to try the products. But I must say that it's a good attempt to show your credibility to some unknowing customers.)

3. Had this publishing claim, which I forgotten what it means, but he said that no other companies would dare to make a claim like that.
(If you dare to make that claim, why would it be so difficult to read? It was like 4 pt size? If that claim was that good, why didn't you make that a selling point and blow it up big?!)

4. Show us lots and lots of newspaper articles and such.
(Newspaper articles show a lot of actual information and promote credibility, but one thing that people tend to forget is that.. THE DATE OF PUBLISHING. Have it ever occurred to you that these articles are dated years back or decades ago, in which the information might not be relevant or accurate now?

5. You can earn 8-9k, $12-$15k a month, and get titles like: Regional Director etc.
My bullshit detector starts working, and one thing that you need to take note is the word: CAN.
You CAN earn such money, but doesn't mean you WILL. Having said that, I do believe a handful or maybe 2 or 3 earns such figures a month, but what about the rest?

They keep insisting that they earn like $9k or $12k, but where's the proof? I don't see you showing me your pay cheque, or neither do you wear shirts from Raoul, A|X, Gucci or whatsoever? It doesn't seem logical that if you earn a 5-figure amount, you would buy clothes from G2000 or CK Departmental Store?

And the titles: Directors, Managers, whatsoever. You can self-proclaim to these titles, but whether people does believe you is another different question.


6. In order to earn like them, first you have to spend like them.
You need to spend 5K on their products, and re-sell them to your friends and relatives, so that within a few months, you can earn like them.

In other words, it's actually: potential exploitation of personal relationships which are used as new sales and recruiting targets.


I could seriously go on and on, but I'll just stop here. Hope this provides you an insight of how they work, and DO NOT BE ENTICED BY THE EXAGGERATION OF THE RICHES!

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