Because MLM recruiters work hard every day to get your money. Somebody has to balance that. You might think given that MLM has a reputation (well-deservedly) for being shady, and using deceptive to dupe people into “opportunities” that are nothing more than a chance to buy junk in a bottle, that MLM’s would be going away. Well many do go away, because MLM companies as we’ll expose in future articles often follow a cycle of birth and death, and the people behind them often resurrect their failed MLM scheme under a different name and business identity. Yet despite all of this, and despite the vast resources available for anyone doing their research, the power of personal persuasion by a committed salesperson is still effective. And there is a bit more to it than that, because MLM’s combine the personal selling power of the recruiter, with a group setting designed specifically to seduce, entrap and ultimately defraud would-be recruits into signing up and paying their dues. Depending on the MLM’s game plan (some strive for larger sums up-front, others aim for longer-term residual purchasing quota’s) the new recruit once separated from their “investment” will rarely get it back. In numbers, 99% of MLM recruits never make a penny. Most lost the majority, if not all of their investment.
The American dream, the Canadian dream, the European dream, is to start with nothing, and someday end up with a lot. And going into business for yourself is one of the main ways to achieve this goal. What MLM’s do, and one of the reason’s were so passionate about exposing MLM’s at the MLM Task Force, is they steal away that dream. They steal away the savings of their recruits which could have gone toward starting a real business. They mimic real businesses, using the language of opportunity and freedom, yet hijack the very real potential that exists in every person with an entrepreneurial spirit.
Each year in North America alone, billions of dollars are lost by MLM recruits. We won’t be able to stop this trend because the desperation so many feel with their personal finances and the economic situations will continue to make people vulnerable to the pitchmen of the MLM industry. Yet if we can serve as a resource, and help just a small percentage of potential MLM recruits save their money and find a path away from the MLM it will all be worthwhile.