At the insistence of a friend, I attended a 'business proposition' yesterday. I asked for more information, but was told that he was not the best person to dispense such information and that I would need to attend the talk to learn more from it. The first thing that came to my mind was. oh no, another effing MLM talk. My BMT buddy said exactly the same thing to me. Those who signed on with such companies are indeed well trained in recruiting!
Anyway, I've always been curious as to how these schemes work. The pitch was held at a modest ballroom at the Copthorne, and the speaker was some ex commando ex accountant turned MLMster. The first 20 mins was spent ridiculing the participants and their names (but that was probably just his own warped brand of humor), and the next 20 was spent on concept of franchising (think McDonalds, Subway) and the need to cut the middleman out of the supply chain.
Finally, after 40 minutes of a frankly quite tiring to listen to speech, he moved on the most important part. He represented Amway, Alticor, BritCorp, all of which are established MLM corporations in the States. The companies sold household necessities like shampoo, face wash, toothpaste etc. Now, instead of letting large companies like NTUC play the role of the distributor, he said, YOU be the distributor. For those in the crowd who didn't grasp the significance of this, he laid out an array of figures - 4% of everything sold at McDonalds goes to the founder (and he's 6ft under) so that amounts to about a few million daily. Of course, there's the mandatory introduce-the-top-producers section after the talk. We were shown how ordinary people like you and I can become top producers but were not told how much they made.
And therein lies the basis of most MLM schemes - they feed on one's desire to get rich, to break out of the rut, to earn as much as possible and the like. It's probably the sole motivation that drives the MLMsters. The speaker was very smart and careful not to state that his scheme would put you on the same level as the founder of McDonalds or Subway. Instead, he demonstrated that franchising works (it obviously does) and that he was offering us a chance to be a franchisee marketing daily necessities. He was also careful not to overstate the gains that one would get from buying the company's plans. At the end of the talk, many questions were left unanswered, such as the basis for the commissions and the franchisising system which the company offered. We were told that we had to attend another talk if we were interested.
Bottomline: I didn't like the way the speaker insinuated that we should disassociate with friends and even parents who are broke or not as rich as they should be. There's obviously nothing wrong with hanging out with people for who they are, and not what they are.
MLM works. But it is more suited for those who think that money is the means to all ends, including happiness, that to accumulate material wealth is the only Great Aim in life. And of course, if you would want your friends to associate you with their toothpaste, shampoo and face wash salesman. ><