^ Jump up to: a b Merrilees, Bill; Miller, Dale (1999). “Direct Selling in the West and East: The Relative Roles of Product and Relationship (Guanxi) Drivers”. Journal of Business Research. 45 (3): 267–273.
On the seller side of things, it’s also somewhat demeaning to imply that women who join MLM companies are doing so blindly. Jamie Clarkson, a 28-year-old Arbonne executive regional vice president from Winnipeg who joined the company as a 22-year-old university student, says she didn’t sign anything until she’d done her research. “It was really important to me to do my due diligence on the business and the industry before starting this opportunity,” she says. “What really drew me to Arbonne was the fact that they are a member of the DSA, which has a strong code of ethics and high standards for business practices.”
LuLaRoe also says it invests “considerable time, resources, and talent” to support its “independent retailers,” as it calls its consultants. If they experience financial or psychological hardship through operating their businesses, it says it’s not the company’s fault. “Retail is not for everyone,” says a LuLaRoe spokesperson. “Retailers own their own business and make their own decisions…The success of any business depends on its leader’s own respective and independent business goals, and the strategies they employ to achieve those goals.”
LuLaRoe’s messaging is filled with positive language: “I believe in you” is the company’s unofficial tag line, and body-positive imagery floods its website to showcase its large selection of flattering plus-size outfits. “It’s hard to find plus-size clothing that actually looks good—that makes you feel like you look good,” Sophie says. “That’s why there’s such a customer base for LuLaRoe.”
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.
The question for would-be marketeers is… what is “X,” and how can it be predicted to maximize profits? The fact that “X” is hard to pin down does not mean that it does not exist, and every Widget built beyond “X” will end up producing a problem for the organization. The market only wants “X” Widgets at $100. What are you going to do with your extra inventory of Widgets beyond “X” that no one wants, and the sales people you hired to sell them?
Many LuLaRoe Facebook groups have the word “addiction” or “addicts” in their titles: Christine’s LuLaRoe Addicts Anonymous, LuLaRoe Addicts, LuLaRoe Addiction VIP Boutique. It’s supposed to be a joke, but it’s truer than many women realize.
For a portion of independent retailers, LuLaRoe is to economic opportunity as Goop is to wellness: It’s for ladies who already have it all. The ability to throw down $12,000 to start a LuLaRoe business and work 30 hours a week sometimes comes from a place of privilege, not desperation. Some mothers who are just looking for a hobby have husbands whose salaries are already high enough to support their families. “I felt like I was trying to keep up with the Joneses to stay in business against these other consultants who can afford to drop a $500 order every few days,” Ashley says.
^ Jump up to: a b O’Donnell, Jayne (February 10, 2011). “Multilevel marketing or ‘pyramid?’ Sales people find it hard to earn much”. USA Today. Archived from the original on May 4, 2011. Retrieved April 5, 2011.
MLMs work by geometric expansion, where you get ten to sponsor ten to sponsor ten, and so on. This is usually shown as an expanding matrix (just don’t say “pyramid”!) with corresponding kick-backs at various levels.
Jump up ^ Michael L. Sheffield (Feb–Mar 1999). “Comp Plan Conversion:Direct Sales to MLM Compensation Plans”. Direct Sales Journal. Archived from the original on May 1, 2011. (citing Neil Offen, president of the Direct Selling Association)
Telling lies about people or groups is slander. Systemic and malicious slander is illegal in most civilized countries. Slander is a sin listed next to murder and adultery in Biblical texts. But how will you know when you become the slanderer by repeating what you heard in an MLM meeting?
I really like the support available with both YL and doTERRA. I didn’t avail myself of all of it, but of what I did, I found doTERRA’s support network to be stronger. Both companies had websites with treatment and/or testimonial resources available (actually, the most valuable resources were not but together by the companies, but by outside sources–likely reps high up in the business).
Investigate companies. Choosing the right company is key to your success. Quick and easy internet searches can usually answer many of the questions you may have. Do some research to determine which company is best for you personally. Some questions you should ask yourself when researching companies are:
Where is the “switch” that can be flipped in an MLM when enough sales people are hired? In a normal company a manager says, “We have enough, let’s stop hiring people at this point.” But in an MLM, there is no way to do this. An MLM is a human “churning” machine with no “off button.” Out of control by design, its gears will grind up the money, time, credibility, and entrepreneurial energy of well-meaning people who joined merely to supplement their income. Better to just steer clear of this monster to begin with.
The most cult-like thing about MLM is that it manipulates members’ existing beliefs and desires, and tricks them into believing they are exercising free will. MLMs are able to coerce people into willful and compliant self-destruction on a staggering scale: we’re talking quitting or getting fired from a six-figure full-time job due to an MLM, alienating everyone you know due to your constant sales pitches, investing your own or someone else’s life’s savings into an MLM, ruining your credit or losing collateral by borrowing heavily to fund an MLM, and even theft to support an MLM habit. Suicides related to MLM have been reported.
Quartz agreed to Kayla’s request not to use her last name to protect her anonymity, and gave pseudonyms to others. Several of LuLaRoe’s sellers declined to go on the record with Quartz using their full names, citing concerns about possible reprisals from the company due to a non-disparagement clause in their contracts, and concerns about being harassed by other sellers. This fear only perpetuates the cycle as it pulls more women into its spiral.
When it comes to selling product, MLM sales reps are probably no more aggressive or obnoxious than ordinary salespeople. Since most are not salespeople by nature, and it is characteristic that MLMs attract few people with any experience selling this particular product or service, they usually sell through pre-fab “parties” or home “demos.” Thus, sales pressure is exerted by situation, if at all.
One such success story is Nicole Haas of Williamsburg, Virginia. A bubbly blonde and former personal trainer, she put $12,000 on a low-interest credit card to start her LuLaRoe business in January 2017. Through working 25 to 30 hours a week, she paid off her credit card in May and now puts $3,000 a month in her family’s account, less taxes. “It’s changed my life,” she says. “It’s changed who I am as a person.”
It is a fact that a few large MLMs have survived against the best efforts of law enforcement officials to shut them down, spending millions of dollars to protect, lobby, and insulate themselves. But the same could be said for any organized crime. It is difficult to stop once it becomes so large.
Jump up ↑ Lewis, Truman (September 10, 2012). “Medifast Subsidiary Agrees to $3.7 Million Penalty”. ConsumerAffairs.com. http://www.consumeraffairs.com/news04/2012/09/medifast-subsidiary-agrees-to-37-million-penalty.html. Retrieved July 16, 2015.
Jump up ↑ “Women say they were branded and traumatized by secret group’s doctors”. CBS. https://www.cbsnews.com/news/nxivm-women-say-they-were-branded-traumatized-group-doctors/. Retrieved 13 November 2017.
I recommend you consult with a professional before ingesting any essential oils. Consult a Medical Doctor, Naturopath, or clinically trained Aromatherapist who knows you and is aware of your medical history, as well as any medications you are on. With this information, the professional can tailor a regimen that works for your body.
Marketing innovations are not rare in the modern world, as evidenced by the success of Wal-Mart, which found a more efficient and profitable way to distribute goods and services than the status quo, providing lasting value to stockholders, employees, distributors, and consumers. But this is not the case with any MLM to date, and after 25 years of failed attempts, it is time to point out the reasons why.
The MLMers of the new millennium are starting to sound a lot like the gangsters of yesteryear. In an era where management science and the law generally condemn MLM, they’ve “got their own experts,” from academia or law, who are “on the payroll.” Confidence, remember, is key.