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Thread: MLMs sending people into debt and psychological crisis

  1. #1
    Sith Lady and Cool Kid Darth Penguin's Avatar
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    “I was urged to stop paying my bills to invest in more inventory. I was urged to get rid of television. I was urged to pawn my vehicle. I just had to get on anxiety meds over all of it because I’ve started having panic attacks.”
    In June 2016, Sophie (name changed) quit her job in the suburbs of Fort Worth, Texas to sell for LuLaRoe, a rapidly growing clothing company that offers self-employment opportunities to American women in the form of hawking hyper-hued apparel. LuLaRoe’s consultants told her—and tens of thousands of other mostly rural and suburban women over the past five years—that she could provide for her family, join a sisterhood of supportive women, and find meaning in her life again through the conduit of colorful, stretchy fashion—all for a reasonable upfront investment of around $5,000.
    As economic opportunity has become more concentrated in urban areas in the US, rural communities have fallen behind. Residents of towns like Casper (Wyoming), Spring Creek (Nevada), and DeRidder (Louisiana) all missed out on economic recovery following the 2007 global financial crisis. Bootstrapping, hard-working families in these regions are urgently searching for a way to regain their economic liberty, along with their dignity.
    Fed the fantasy of achieving the all-elusive American dream, many of them are being wooed by multilevel-marketing companies. Known as MLMs (or “direct-sales”), the current US administration is stocked with their cheerleaders: Betsy DeVos, the secretary of education, is married to a cofounder of Amway; Ben Carson is a spokesperson for a vitamin MLM called Mannatech; and president Donald Trump used to have an MLM, Trump Network, and was a spokesperson for another.
    https://qz.com/1039331/mlms-like-avo...ogical-crisis/
    This thread is currently associated with: Avon, Spring Shoes
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    I'd be wanting to know why $5K was needed upfront. Am aware of several people selling storage or tote bags, cosmetic or supplment or tea lines through direct sales. The trick is for them to find different people to sell to as their social networks get tapped over and over for sales parties, even if some of the group members have no use for the products.

    When Mom was telling me about a person who keeps trying to pitch her something, I suggested she offer her new prospects instead of any promise to attend future events.
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    OMG don't pay your bills and give us $5k of your money instead ... my parents always told me that if something seems to good to be true, it usually is. There is no way that I would ever not pay a bill to throw money at something that has no guarantees. Saying that, I know so many people who have side 'businesses' avon, eipicure etc and I keep getting invited to their darn parties. As fast as I am invited, I decline ... it is their choice to try selling to their friends and it is my right not to have stuff pushed at me that I don't want.
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    There's a really good Documentary on Netflix about a big MLM Herbalife called Betting on Zero
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    Quote Originally Posted by Tommycoupons View Post
    There's a really good Documentary on Netflix about a big MLM Herbalife called Betting on Zero
    I had a couple of friends shrilling that one. They seemed to have stopped and Plexus has taken over.
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    FTC on MLM( PDF)

    “MLM promoters often claim that the failure rate of small businesses is in the range of 90- 95%. They say this to excuse the widely recognized failure rate in MLMs. What they fail to do is quote statistics from reliable organizations not affiliated in any way with MLM,”
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    I had a chance to attend a talk for a certain crafting line for its reps and to recognize top producers a few years ago. One honoree mentioned in her talk the high unemployment rate in her city as hard to get around when it came to calling people to attend parties. She was coached to focus on the employment rate, not the unemployment rate, and she'd find sales. So she eventually did.

    Yet I'm certain it takes some guts and a thick skin to cold call when the more familiar contacts are not interested after the first two parties, don't do reorders, nor provide possible leads for future event hosts/parties. Or even to figure out which community events are worthwhile to buy a table at in order to promote awareness that one is selling crafting/food/kitchen supplies/storage supplies/health supplements/other lifestyle needs to different groups of people.

    Still $5K-I can see that being spent on an office or social media/computer needs to launch a business. For inventory in the home party format--one really has to resources to work without big sales in the first year.
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    A fool and his/her money. Anytime you see a job where you have to sell, and then people you sell to have to sell. Do the research and put the "shape" together! SCAM. (pyramid)
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    It bugs the heck out of me how many friends have second jobs 'selling' products like these. I find it really annoying when they keep pushing products I'm not interested in, in my face. Thank fully I have no problems saying no to any of them The latest is one of them started selling lipstick/gloss or something like that, now she is trying to recruit people ... yawn, so boring!
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    Quote Originally Posted by Colsgirl View Post
    It bugs the heck out of me how many friends have second jobs 'selling' products like these. I find it really annoying when they keep pushing products I'm not interested in, in my face. Thank fully I have no problems saying no to any of them The latest is one of them started selling lipstick/gloss or something like that, now she is trying to recruit people ... yawn, so boring!
    Same! As much as I want to support them I am not going to feel pressured to by crap I never wanted in the 1st place. I did buy one of those silly mascaras for 1/2 price to be nice and it was the messiest piece of crap. I looked like I was going out for Halloween after putting it on lol
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    Quote Originally Posted by Tommycoupons View Post
    There's a really good Documentary on Netflix about a big MLM Herbalife called Betting on Zero
    I've read article about this, it's quite interesting one. I would like to check the documentary for myself.
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  12. #12
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    LuLaRoe abruptly changes buy back policy

    LuLaRoe abruptly reverted to its original buy-back program, seemingly overnight. That now-in-effect policy places strict stipulations on returning merchandise.
    And thousands of women, who signed up to be consultants under the 100 percent return guarantee, are taking to the Internet, claiming the company scammed them out of tens of thousands of dollars.

    The 100 percent buy-back policy worked like this:
    Anyone who signed up to be a LuLaRoe consultant was able to end their business, return all their inventory, and receive 100 percent of their outstanding investment back in the form of a refund check.
    But no more. And many consultants claim they had already started the process of cancelling when LuLaRoe pulled the rug out from underneath them.
    The new policy (which is actually the original policy) leaves consultants on the hook in five key areas:

    • The company says it will only reimburse consultants for 90 percent of their outstanding inventory (not 100 percent, as previously stated in communications from the company.)
    • Returned merchandise has to be in “original packaging” and “resaleable” condition. Consultants remove the clothes from the bags they came in to display them for sale, and claim this leaves them at the mercy of LuLaRoe.
    • Consultants can only return clothing they bought directly from LuLaRoe. Many consultants buy clothing from each other to round out their inventory.
    • Consultants must pay for shipping and handling of all merchandise they are returning back to the parent company.
    • Only merchandise purchased in the last 12 months is eligible for return.
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  13. #13
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    Quote Originally Posted by HillarySmith View Post
    I've read article about this, it's quite interesting one. I would like to check the documentary for myself.
    I watched this to about half way through and then I had to turn it off. It made me feel sick all the people being sucked in by lies and misinformation ... especially when you know that many cannot really afford the initial outlay.
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    so boring!
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  15. #15
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    The best was the video phone one. ACA I think.

    The pitch started... "Do you know Donald Trump?"

    Try selling that garbage now. lmao
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