The company’s that everyone knows are MLM trash (HerbaLife, JuicePlus, ect). When I was looking for a job I naively joined a seminar discussing CutCo Knives. Come to find out these dud muffin companies have been around since my mom was growing up, and are somehow still operational? Wouldn’t the BBB or whatever business bureau operates in the US (FTC?) have these scams shut down by now? I understand that new ones are popping up all the time but im referring to the ones that have been around forever now.
In: Economics
The biggest issue is that they aren’t *actually* a scam in the sense of “you give money and we take it and run”.
They’re scams because the only way to actually earn any money is by working your ass off, or getting other people who will work their ass off.
If you look at the details and read the fine print, the insanity is disclosed in advance. The person talking will probably exaggerate it, and make it seem simple, but the details are there.
If you are willing and able to hit the pavement and sell sell sell, you can make money with these programs. But you have to realize you’re going to pitch to 100+ people for every 1 that you make a sale to.
I know someone that participates in one of the MLMs because their family of 6 actually uses the products, so they basically get to buy them at wholesale costs by being a “member”. They have a few friends that will occasionally buy stuff too, and so they’ll just order it at cost and sell to them.
They’re not in it to get rich quick, they’re in it because they use enough product to stay members and essentially get a discount.
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