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"It's A Scam", they cried. Should we allow MLM and Network Marketing?

scam - a dishonest scheme; a fraud : [with adj. ] an insurance scam.

When I was younger there was a very clear definition of this word. This was before the internet, MLM or Network Marketing. It was clear that if someone was scammed they had been relieved of something valuable (usually money) for nothing in return (or consideration, to use a legal term). Scamming was done by people with the intent of being dishonest. Such people will always find a way. These days they can duplicated your ATM card or credit card and find your PIN and, hey presto, relieve you of your money giving you nothing in return. There are people who forge money or gems or tell you you've won the Spanish lottery when you haven't even played it. These are scams.

Today, unfortunately, this word is all over the internet. Sometimes even in its correct context. You see, the internet has given many people a voice. It has given everyone a voice. This blog is a perfect example. It allows me to jot down my thoughts and opinions for the public to see and it allows them to respond with their own opinions. Nice.

It also means that people's opinions ma be taken as unverified fact. It's a double edged sword. I know many of you who read this are in the network marketing businesses and MLM opportunities. Opportunities that offer people the chance to become business owners and build teams, a chance at empowerment to make their own decisions. I am sure that you believe in the products that you sell as well as the compensation plan otherwise you wouldn't be successful, right? You understood the risks, the numbers and you read the terms and conditions, right?

So what happens when someone doesn't make it in this industry when the statistics show that only 3% will? Should we close down this type of business model? Should we stop franchises or bricks and mortar businesses where there is a two year break-even period and perhaps only a 9% long-term success rate? Should we allow lotteries where the chances of winning is astronomical?

Are these scams because the success rate is so low?
Do we have an obligation to the majority to deny an opportunity where only a minority will succeed?

As always, I look forward to your comments and leave you with this quote from the Buddha;

Do not believe in anything simply because you have heard it.

Do not believe in anything simply because it is spoken and rumored by many.

Do not believe in anything simply because it is found written in your religious books.

Do not believe in anything merely on the authority of your teachers and elders.

Do not believe in traditions because they have been handed down for many generations.

 

But after observation and analysis, when you find that anything agrees with reason and is conducive to the good and benefit of one and all, then accept it and live up to it.” Buddha

12 comments:

  1. Love the quote Howard. I feel this industry we are apart of creates opportunities for thousands and also that we create our own odds in life. The people who have succeeded in the industry didn't do it out of luck, but rather who they were being, the decisions and actions they were taking. Thanks for stimulating my mind once again to a greater level!

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  2. Thank you Lianaa for taking the time read and comment. I love to hear ther people's opinion as I already know my own ;)

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  3. Hey Howard you bring up some great points the primary one for me is the use of the word scam when it comes to network marketing. You can have a scam going on in any business, take a look at Enron if anyone remembers that name any more. In network marketing people use the word when they fail and the truth is they're looking to blame anyone or thing except themselves for their failure. I guess this will continue since more people are getting into network marketing than ever before.

    Michael

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  4. How true Michael. It may be an opinion too that the education of Network Marketing is increasing with more people becoming involved. Generally, people are starting to accept the fact that it is a business and requires the effort as such.
    I've certainly been educated!

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  5. When some people hear you are involved in Network Marketing they automatically think scam. It happened to me with members of my own family. They know that I am honest, ethical, and hard working, yet they automatically assumed that I'm involved in a scam.
    In my opinion, this type of assumption is based on ignorance. Instead of jumping to conclusions, they could have done the same thing I did - a little research - and they would have found out that Network Marketing / MLM is actually a very viable business model.
    It is not going to be easy to change that perception of the Network Marketing industry, but articles like this certainly help!
    Thanks for helping to make that difference.

    Wendy

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  6. Hi Howard,

    I laughed my way through this post. OK so you're a little funny, I'll give you that one, but it's the scam thing :) Crops up everywhere. You can take just about any networking opportunity and pump the name into Google... Result? Scam this and scam that. Even people associated with the product using it in Adwords to get the traffic. Which is clever, admittedly.

    3% for networking marketing or 1 in 14 million on the UK national lottery? I'll have the 3% chance of making great money and may just buy the occasional ticket. You have to be in it to win it.

    And therein lies the rub. For anyone to know whether your business or mine is a scam, they actually have to be on the inside and apply effort and that's where the wheels fall off.

    Anyway, nice post and I love the Buddha quote.

    Regards,

    Andrew

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  8. Hey Howard,

    Great article! I really like how you addressed these mlm scam concerns. I've seen your work on ezinearticles.com to... Good stuff!

    I have been researching the way Google often adds the words SCAM to many company name searches... this is really scary because it means that your company could be impacted on google right now! I wrote Mannatech Scam about one company specifically, but it really applies to all of us.

    Thanks again for the great content!
    Best wishes!
    Joe Shaw

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  9. Hi Howard,

    That word scam seems to be a way people use to justify not taking enough effort. Don't get me wrong there are some real scams out there in mlm but for the most part, business is business. Nothing happens with out putting some work into it.

    Thanks for the post

    Mike Sweeney

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  10. Hey Howard neat article.

    Its a shame that Scam is such an effective keyword - its so over used and misleading as every second product review has a title like "is xxxx a scam?"

    I'm not an MLMer myself but am a sales professional and I find it a big yawn when I hear all the vitriol directed at the sales industry by those whose income and lifestyle is completely dependent on someone actually selling those widgets that they take so much pride in making!

    Here's a thought though. I think its counter productive to seek endorsement from non believers for our choice of endeavor. The mantra of a good salesperson is Yes - No - Next! I have little appetite for listening to pointless arguments excuses and justification for procrastination and an inability to make a decision, especially from those who are not in my target market - Yes - No Next! lol!

    cheers continued success and thanks for sharing

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  11. Great point Kiaran and I don't like to dwell on it myself. New article tomorrow. Thank you so much for your input.

    Hey Mike, great insight from you. 'Action' is the key, it's the answer and it's the cure. Thank you.

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  12. Hi Howard! I think that people like the word scam because it's their natural default setting. It gives them an excuse to say "see, I told you" or not commit to the process, and make no mistake that it is a process.

    MLM/Network Marketing is the only industry where the playing field is leveled. As long as you put in the work (which is why only a small portion make great money) then you can design a truly fabulous life.

    Golda Smith

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