Clearly no understanding of how money works, and he writes for CNN? Okay then…well the war got us out of the great depression. Direct selling will get us out of this current slump. Why, spending is what runs economies. Out flow determines inflow. Hoarding cash only increases inflation because the govt. is forced to print more fiat money (not worth its weight in gold might I add…spend now to avoid inflation. Very simple really!

Although JC claims he has had a good experience and is basically a typical ‘distributor’ in the particular MLM he and his wife are involved in. He is involved in a ‘self consumption’ model which cannot possibly produce commission checks that offset the cost of his purchases which he admits that he and his wife are consumers of. He also says that he purchases all the training materials, so I am left to assume that many of the people he meets in his business are people he is hoping to recruit as a ‘distributor’.

JC fits perfectly into the ‘buy from yourself and teach others to do the same’ (BFYATOTDTS) model; and if he does not retail product, he violates his company’s retail selling rules. Surely you should have recognized this and at least mentioned that is against DSA best practices. He is a perfect example of what makes MLM marketing like this a product based pyramid scheme. The tools serve to promote the deception. Most likely the people that JC recruits also will follow the ‘buy from yourself’ method to achieving the MLM pot of gold at the end of the rainbow, which is generally well guarded by the top of the top of the top of the pyramid kingpin ‘distributors’.

Thank you JC for describing the bad situation that sadly exists amongst some of the DSA companies. The direct selling in your circumstance is not made by you, but buy the company you claim to represent. I am sure they view you as a good customer.

I hope this also helps direct sellers open up and invite, appropriately, others over for a shopping alternative during the holidays and year round too!

I think that online shopping and social networking trends will help consumers to be open to new, better, and more fun ways to make their usual or intended purchases.

I am so glad that you advised your readers to do the necessary research about any opportunity. Not all people attending a party are asked to join up themselves. I believe I read the blog in question. Pessimism shouldn’t be mistaken for good sense. You are correct that many people do have money, will not lose their jobs and the like. Some are fortunate.

Strangely your analysis of how the economy works is correct; witness the recent stimulus checks passed back to the people to hopefully avoid the present down turn in the economy. Of course people have just come out of a long spending cycle, which runs counter to the good habit most people should develop to save money for these kinds of rainy days.

Spending is encouraged to stimulate the economy, but I believe people are best served when they seek out value in a free market situation where prices will most generally find their correct level. Sadly, people can be convinced that a MLM marketing scheme will provide some big payoff in the future, and in a “reality inverting” scenario, make themselves not a distributor of products, but soul customer in their relation to their business. To succeed in some of these marketing strategies, they must also find other people who will believe in the “buy from yourself” idea that is bandied about by the motivation industry. Not only will they be expected to buy the products, but also the systems of tools and motivation that they are told are the “keys to success” in their consumership. Some are told conflicting ideas like: “tools are optional, but so is success.” Now which message is really being relayed here?

I am glad you tempered your observations and advised your readers to take the time to make a wise decision. To decide to go forth, or even to decline altogether is the wise approach to these supposed opportunities and business offers.

I have a very nice neighbor. If for some reason she would invite me over to enjoy a social gathering and possibly see something she has to sell, I would be inclined to go. If I were confronted by a hard sell for a recruitment into one of these “buy from yourself” affairs, I most likely would politely decline, enjoy what I could about the evening and at least try to remain friendly with my friend. Too often these recruitment inclined people brand people who will not accept their glorious proposals as “broke losers” and basically shun them with a us versus them attitude. I realize there are exceptions, but I am only generalizing here.

As I’ve said before, the price of some mixing bowls or measuring cups (I love to cook) are not that high of a price to pay to enjoy a social occasion. My wife may be more inclined to be the target of such an invite because if there is a real product being offered, many times it is makeup, home interior, or cook ware. I get the benefit of the prize she may bring home as a gift for me. Okay, I buy the thought that the price of dinner, movie and a night out is also another way to stimulate the economy, so why not pay a little extra for some face paint or wall adornment?

In the end, people should be wary, not inclined to quickly jump into any situation without doing plenty of research and sleeping on any business offer. I have a business degree, and I wouldn’t think of jumping into any business offer without sufficient and complete investigation. What one learns might prevent one from being involved in a selling business where you are taught to believe you are the distributor but really are the target customer and consumer. I tap my head with my index finger and ask readers to also do the same thing, it is only wise. Not all these MLM companies are created equal. Distributors basically must pay any over head expenses necessary to operate a recruitment first business model. Many will be encouraged to buy any number of books, tapes and instructional material, and attend “pay to attend” seminars and rallies. All of these present a situation where one’s expense to be in the business may far outweigh any commission check. Use good commons sense—which I feel Amy is urging. There are competing opinions about MLM businesses, be sure to listen to both sides.

Finally, reaching a pin level of success in many of these businesses requires a large outlay of time, money, and potentially socially stigmatizing activities. Many people are not suited for the incredible amount of hoops one must in the end jump through. For the vast amount of distributors in these businesses, long term success is mathematically remote but not entirely impossible. Use common sense, DO ALL OF THE EXTENSIVE background checks on the opportunity. A wise person wouldn’t want to hire a new employee without doing some checking. This should apply to MLM business offers as well.