This is from Peter Stilphen and is really quite on the money. For additional copies, please send $500 and $49.95 a month... But seriously, to read more, please check out Home Based Travel Agents Online.
We continue to hear about the multi-level-marketing activities of the people in this business. Usually,it is never in a "good light" and one, especially me, wonders why this sleazy profession is still around. You just need to "Google" MLMs or card mills and you will bring up the sites that are pro and con about this subject. Also try www.scams.com or www.ripoff.com.
I've often wondered who these individuals are that get into this business and why they do it. Armed with my own psychoanalysis credentials, I decided to do some research. I have great credentials. I have seen two episodes of Dr. Phil's TV show, and I stayed once at a Holiday Inn Express. Here's what I discovered.
MLM executives were actually born with a rare gene known as "ripyouoff". The gene brings out various traits almost at infancy. We learned that babies born with this gene were the ones who cried incessantly in the nursery just to receive attention. Their huge ego will be with them all through childhood and last until they are incarcerated, chased from the State or the Devil decides to take them once and for all.
During their childhood years it was not uncommon to see a resourceful MLM practitioner have several businesses. Many of them began a business at a very early age. They had newspaper routes, sold lemonade in the front of their house or even sold girl scout cookies. What made these individuals different was that they had to have another version of the same business and felt the more involved they could get people, the more money they could make.
The kid with the bad gene was more apt to water down the lemonade to increase profits or even to recruit other kids to sell his newspapers paying each kid a tiny percentage of what he actually received from his employer. Same with the girl scout cookies. Recruiting each girl scout and rewarding them based on bringing in additional recruits until he ran out of girl scouts. This worked for a short while, just as todays MLM venture works for a short while.
I discovered that most all MLM executives have had no other business experience other than multi level marketing. It's probably because they couldn't hold down a regular position because their only goals were to get rich quick. Have you ever been curious as to why these same executives have wandered from one MLM activity to another? The reason is that eventually they run out of recruits for a particular product, the State's Attorney General shuts them down for operating a pyramid or the game just gets old. MLM executives do not care about the product they are supposed to be selling as it's all about recruiting and creating a huge pyramid.
MLM executives are generally very lonely people. The reason is that during their life of deceiving and BS..ing their family and friends and the public, they have lost these people in their lives. Have you ever gone to a Pet Smart store and seen the unfortunate dogs and cats sitting in their cages crying out for adoption and love and to your surprise, saw a cage that read "Lonely MLM Executive Needs Good and Loving Home- Completely re-trained." Please adopt that dog or cat instead.
Do you really believe the MLM executives now involved in the travel business care about travel? Of course not. It's about how much money they can make recruiting and the size of the toys they purchase that's important to them. Take a good look at the fools that follow them. It's all about greed and that MLM executive knows it and will take you for all you are worth.
The next time you are at an MLM convention make a statement. Stand up during a speech, flip the speaker the bird and yell out "I'm outta here."
Hi John,I rarely like getting into these kinds of discussions, but I will have to respectfully disagree with a few of things Peter has stated. I DO agree on some points.
ReplyDeleteWe are talking about normal human beings such as myself, and I don't wake up figuring out how to rip someone off.
I think that because there are a lot of shady MLM practice out there those bad apples put a bad name to all MLMs.
Before joining an MLM, I worked a very nice job that paid well. I am not a lonely person, nor did I cry out for attention. His post is merely his opinon (there is some truth to a COUPLE of things) and makes it seem like MLMers are less than human. Not all of them are.
When I joined an MLM I simply wanted to do something I love already but get paid to do it without a boss. I won't go as far as to say that MLMs are like franchises, but MLMs are attractive b/c the product is usually already established, it's turn-key, you are not alone, and it doesn't cost thousands/millions to start. There are so many people that DON'T want to work for corp America or want to supplement their incomes without having to get a second job (I've done that too). An affordable homebased business without all the overhead helps someone have their business without going broke or fear of claiming bankruptcy should it not pan out.
I simply just want to call my own shots. Don't want a boss. And doing something I love. I love travel, and jewelry/beauty stuff, so that's what I do for business. I like the residual that comes along with that if I want.
Does that make me a monster? Now to be honest, I (and I'm probably one of the few) don't want flashy things. I just want to be financially comfortable, not worry about lack of SSN, not go back to a job, and take care of my family without cringing when I look at my bank account every month, do it on my own time and schedule, nd retire before 55. If everything else falls into place it's just icing.
But I never join an MLM thinking how I'm going to screw people. And that's not everyone either. Not all MLMers are like that!
If people want to live beyond their means and want to afford to do things that their jobs can't fully do I don't see anything wrong with having any kind of homebased business as long as it's done with integrity, morals and ethics.
Lakeisha....this is an opinion by Peter and it is not directed to the participants of shady MLM companies. It is an opinion of the EXECUTIVES.
ReplyDeleteLakeisha, I find it funny how you tote it as being financially secure, one of the reasons for joining a MLM. I have heard the same excuse time and time again. Now if this was true everyone would be making money. Disclosure statements prove differently. If your at the top, or a heavy recruiter, yeah your making money selling "travel". Now what about most that don't make any money or those that do averaging $100 a year or so. Thats hardly supplimenting much of a income. If I took the word of every person in the "travel" MLMs about how much they were making then the reports wouldn't have to prove them to be lying. Rarely do you hear someone admit that they are making no money or very little (well other than Rod, but we won't get into that).
ReplyDeleteScam, Not once did I say that I was wealthy. I never said that I was a top recruiter either...I am just speaking in general on the statements made on the article.
ReplyDeleteSecond, I am not with YTB.
I am just saying that some people choose an MLM company to attempt to (or successfully) earn an income from home.
I am one that will say that not everyone makes money in MLM. I'm simply stating, just like getting a second job, just like working for a Direct Sales co, starting a traditional biz or a franchise, it's for the intent to make money, whether your are selling a product or service.
I will also say that being in business is MUCH harder than a job. Problem is a lot of MLMers
'tote' in their words that it's easy when it is not.
I also never said it was a guarantee to become financially secure.
Hey John, gotcha. =)
Tupperware was developed in 1946 by Earl Silas Tupper (1907-1983) in the USA. He developed plastic containers used in households to contain food and keep it airtight. The formerly patented "burping seal" is a famous aspect of Tupperware, which distinguished it from competitors.
ReplyDeleteTupperware pioneered the direct marketing strategy made famous by the Tupperware party. Brownie Wise (1913-1992), a former sales representative of Stanley Home Products, developed the strategy. During the early 1950s, Tupperware's sales and popularity exploded, thanks in large part to Wise's influence among women who sold Tupperware, and some of the famous "jubilees" celebrating the success of Tupperware ladies at lavish and outlandishly themed parties. Tupperware was known -- at a time when women came back from working during World War II only to be told to "go back to the kitchen" -- as a method of empowering women, and giving them a toehold in the post-war business world. The tradition of Tupperware's "Jubilee" style events continues to this day, with rallies being held in major cities to recognize and reward top-selling demonstrators, managers and distributorships.
Tupperware is still sold mostly through a party plan, with rewards for hosts. A Tupperware party is run by a Tupperware consultant for a host who invites friends and neighbors into their home to see the product line. Tupperware hosts are rewarded with free products based on the level of sales made at their party. Parties also take place in workplaces, schools, and other community groups.
In most countries, Tupperware's sales force is organized in a tiered structure with consultants at the bottom, managers and star manager over them, and directors and Legacy executive directors at the top level (all levels remain consultants). In recent years, Tupperware has done away with distributorships in the U.S. This has allowed Tupperware more flexibility, and more generous commission and rewards for their consultants.
Damn Scammers!!!
Mary Kay is a brand of skin care cosmetics and color cosmetics sold by Mary Kay Inc. Mary Kay World Headquarters is located in the Dallas suburb of Addison, Texas, United States. Mary Kay Ash founded Mary Kay Inc. on Friday, September 13, 1963. Richard Rogers, Mary Kay's son, is chairman and CEO, and David Holl is president and COO.[1].
ReplyDelete"Recruiting commission earnings" reflects the commission and bonuses that one earns from the wholesale purchases of their downline. It does not include income from retail sales. It does not include income from the Mary Kay tools business.
A press release [44] claimed the following for Canada in 1999:
Of the 16,000+ consultants:
The majority earned less than $199 Canadian;
173 Sales Directors earned more than $19,000 Canadian;
3 national directors earned more than $100,000 Canadian;
In an April 2005 press release, Mary Kay (Canada)[45] claimed the following for Canada in 2004:
Of the 29,357 independent Mary Kay Consultants:
2,267 earned more than $150 Canadian;
331 Sales Directors earned more than $15,500 Canadian;
8 National Directors earned more than $100,000 Canadian;
In an April 2006 press release, Mary Kay (Canada)[45] claimed the following for Canada in 2005:
Out of 32,821 independent Mary Kay Beauty Consultants:
2,356 earned more than $100 Canadian;
336 Sales Directors earned more than $17,000 Canadian;
15 National Directors earned more than $100,000 Canadian;
In a February 2007 press release, Mary Kay (Canada)[45] claimed the following for Canada in 2006:
Out of 34,272 independent Mary Kay Beauty Consultants:
2,422 earned more than $100 Canadian;
362 Directors earned more $16,500 Canadian;
16 National Directors earned more than $100,000 Canadian;
For Mary Kay (USA) Nationals, the 2006 median gross income (prior to business expenses) is $75,443.[46]
[edit] Consultant turnover rate
A 68.6% per annum turnover figure has been calculated based upon information supplied by Mary Kay (USA) to the FTC.[47]
A 85% per annum turnover figure has been calculated, based upon the data supplied by Mary Kay (Canada).[45] That document excludes individuals who earn a commission and are in the company for less than one year. It also excludes individuals who are in the company for more than one year, but do not earn a commission check.
Lots of people losing money and dropping out, but I wouldn't call them scammers.
Avon Products, Inc. NYSE: AVP is a US cosmetics, perfume and toy seller with markets in over 140 countries across the world and sales of $9.9 billion worldwide as of 2007.
ReplyDeleteThe company was founded in 1886 by then 28-year-old David H. McConnell who sold books door-to-door and gave out perfume to entice women to buy his books. His perfume became so popular that eventually that is all the women wanted. He then founded the California Perfume Company (CPC) in New York, New York in a 500-square-foot (46 m2) manufacturing and shipping office at 126 Chambers Street. As the company grew, he hired his first representative, Mrs. P.F.E. Albee. In 1897, McConnell built a small (3000 square foot) laboratory in Suffern, New York. In 1906, the West Coast office in San Francisco was destroyed in the Great Earthquake. In 1914 the first non-US office was opened in the Canadian province of Quebec. The California Perfume Company was incorporated on January 28, 1916 by David H. McConnell and Alexander D. Henderson (businessman) in Suffern, New York. [3]. By 1918, five million units were sold in North America, and by 1928, sales reached $2 million. In October, 1939, the name was changed to Avon Products, Inc. The company was taken public in 1946. By 1954, sales reached $55 million, and the "Avon Calling" advertising campaign introduced. By 1971 the lab would grow into the Avon Suffern Research and Development facility. By 1979, sales reached $3 billion, with one million direct sales agents. Today sales exceed $8 billion worldwide. In 2005 they opened a $100 million dollar 225,000-square-foot (20,900 m2) R&D facility to house its over 300 research and development scientists on the original site in Suffern, NY. Avon also has offices in Luzerne, Pennsylvania and Davenport, Iowa.
Damn Scammers!
In February 1980, Mark Hughes began selling the original Herbalife weight loss product from the trunk of his car. By 1982, Herbalife had reached $2,000,000 in sales and opened a distributorship in Canada, its first outside of the United States. In 1985, the California Attorney General sued the company for allegedly making false claims about the efficacy of its products. The company settled the suit the following year for $850,000 without admitting wrongdoing.[1] In 1986 Herbalife became a publicly traded company via NASDAQ. Independent distributors' personal vehicles could be seen on the street, decorated by decals bearing the mysterious slogan "Make money now, ask me how!". In 1994 Mark Hughes started the Herbalife Family Foundation, a charity dedicated to helping children. The organization receives donations from Herbalife itself as well as individuals within and outside the company. The Herbalife Family Foundation has donated more than $6.5 million to children's causes worldwide. In 1996 Herbalife reached $1,000,000,000 in annual sales.
ReplyDeleteIn 2000, Hughes died at the age of 44. The company has continued to grow after his death.
In 2002, Whitney and Co. LLC and Golden Gate Capital acquired Herbalife for $685 million and took the company private.[2]
In April 2003, Michael O. Johnson joined Herbalife as CEO following a 17-year career with The Walt Disney Company, most recently as president of Walt Disney International.[1] On December 16, 2004, the company had an initial public offering on the NYSE of 14,500,000 common shares at $14/share. 2004 net sales were reported as $1.3 billion. In April 2005, the company celebrated its 25th anniversary with a four-day event attended by 35,000 Herbalife Independent Distributors from around the world. In August 2005, Dr. Steve Henig joined the company as Chief Scientific Officer, responsible for product research and development. In 2008, President and COO Greg Probert resigned after it was reported that he had not completed the degree requirements for the MBA he claimed on his resume.[3]
Herbalife Ltd is incorporated in the Cayman Islands and headquartered in Los Angeles, California[4] and employs 3500 worldwide. Products are distributed worldwide through a network that Herbalife claims contains 1.9 million independent distributors in 70 countries.[5]
Herbalife spends less than $2 million per year on research and development.[1]
Just a bunch of damn MLMers
Discovery Toys is a 30-year-old direct sales company selling educational products. It functions with the typical direct sales model, offering incentive trips and the earning of free merchandise.
ReplyDeleteDiscovery Toys is a member of the Direct Selling Association.[1]
[edit] Toys
Marbleworks is a children's toy released in 1982 by Discovery Toys that consists of colorful, sloped, plastic half-pipes of different designs. The individual pieces interlock, creating a track on which marbles are run. One of the company's top sellers, Marbleworks was included in its product line when Discovery Toys expanded into China in 2003.[2]
Selling toys? Seriously, damn scammers.
Keller Williams Realty was founded in 1983 by Gary Keller and Joe Williams with the mission to “build careers worth having, businesses worth owning and lives worth living” for its associates. Within two years, Keller Williams Realty became Austin’s largest single real estate office. In 1991, Keller Williams Realty began franchising and in 1998, the company expanded into Canada.
ReplyDeleteAs chairman of the board for Keller Williams Realty, Gary Keller is responsible for providing strategic direction of the company. Keller was voted as one of the five “Most Admired People,” in a survey conducted by Real Trends Magazine in 2000. He was also named as Ernst and Young’s “Entrepreneur of the Year for Central Texas and dubbed the second most influential person in the real estate industry by REALTOR Magazine 2003. In 2004, he was he was a finalist for Inc. Magazine Entrepreneur of the Year award. In 2006, Inman News named Keller in their list of the 100 Most Influential Real Estate Leaders.
Keller has co-authored two nationally best-selling books—The Millionaire Real Estate Agent and The Millionaire Real Estate Investor—which have had tenures on BusinessWeek’s best seller list and an appearance on the best seller list of the New York Times. Most recently, Gary Keller has co-authored Shift. A excellent resource for real estate agents in this shifting market.
Freaking Scam Artists!!!
How dare they try to sell homes and make money!
Josh you just don't get it do you? I feel sorry for you.
ReplyDeleteThe difference, Josh, between the companies you have cited here and ytb is that these companies reward on product sold, not recruiting. And, Keller Williams is a FRANCHISE, not an MLM, just like your above posting states.
ReplyDeleteJosh doesn't realize that 85% of YTBs revenue comes from recruiting. Give the guy some slack folks! Can I buy plastic containers at my 'new' YTB store?
ReplyDeleteThe inital blog post wasn't about YTB, My replies had nothing to do with ytb but MLM in general
ReplyDelete"My replies had nothing to do with ytb but MLM in general"
ReplyDeleteAnd, as usual made little sense.
Please travel pro...enlighten me.
ReplyDeleteWhat don't I get?
Josh, the original article is talking about MLM companies. Your examples are Direct Selling companies. Big difference.
ReplyDeleteTupperware, Herbalife, Mary Kay and Avon all have multilevel comp plans. Heck even M&M Mars has a multilevel marketing home party division. The only one where I erred was Keller Williams as it is a franchise op, but still pays to several levels.
ReplyDeleteJosh said...
ReplyDeleteTupperware, Herbalife, Mary Kay and Avon all have multilevel comp plans. Heck even M&M Mars has a multilevel marketing home party division. The only one where I erred was Keller Williams as it is a franchise op, but still pays to several levels.
They may have multi-level comp plans, but the difference between those companies and the MLM's that are being discussed around here is that the companies that you cite pay and reward based on sales of product, not how many others you can recruit into the business!
Ainsworth, go look up the comp plans for Mary Kay and Avon, both specifically say that the distributor will be significantly compensated for bringing in new distributors. That is the first point, second, my posts were in response to the initial blog post speaking in absolutes about MLM and its founders executives, etc. My point was it was and is extremely foolish to speak in black and white and there are many examples to disprove the blog poster's comments.
ReplyDeleteI am not speaking at all about YTB or any other travel MLMs or specifics companies that have been discusseed in the past. I am responding simply to the initial post. Period.
But, the only comparison I would make is it diminishes, IMO, the credibility of both the author and those of you who blindly follow because it was posted here.
Really, who gives a rat's patooie about the other MLM's. Peter was talking about the travel MLM's.
ReplyDeleteTrust me, Josh, I do not "blindly" follow Peter Stilphen. On a personal level, I can't stand the man. While I agree with his stance on travel MLM's, I don't agree with what I perceive as his motivation. I've met the man, and I personally think he's just as slimy as the leaders of ytb and other travel MLM's.
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