My wife and I recently succumbed to the many web sites that talk about how to make extra money working online. We received the welcome kit, after paying the shipping and handling fee. Once the package arrived, I should have known what we were in for. The shipping fee was way overpriced, and the marketing material said very little about how the business worked.
We continued to view the marketing material and finished the first section of the DVD. Then my wife received a phone call telling her about a hidden second section of the DVD. This was the point where I wanted to run away. However, we determined that watching the second part of the DVD could not hurt, so we watched. I saw exactly what I expected to see. A presentation on the, so called, benefits of MLM.
The pyramid of how to make money was laid out, and the talk about residual income shown. If you are unaware of this business model, then things will look good. However, do you see the information that states that this level of income is not the normal level? It also states to look at the Herbalife web site for actual figures for superviosr compensation.
I went to the Herbalife website, and it is obvious that the congressional hearings did some good for the people that are investigating joining this company. The average superviosr in 2005 made $472 for that year. Active Supervisors make up 85.8% of the company.
The video talks about the chances to make more money once you rise above supervisor. This is where the downline of the MLM pyramid kicks in. Well the World Team made up 8.2% of the company, and they made a whopping $4,683 in 2005. Not to worry, there are levels available above that as well. The next level is called GET: 4.5% of the company and made $21,990. The next level up must be making the real money then right? The Millionaire Team (here is some irony, or an oxymoron), made up 1.2% of the company and made $98,225. That is going to take a great deal of time to become a millionaire at that money level. The final level, read the top of the pyramid, made up. 4% of the company made $567,899.
These numbers show you the truth about MLM. The people at the top make huge amounts of money off the people at the bottom, and the difference in the number of people at the top versus the bottom are almost as big as the difference in the money. Don't fool yourself, MLM companies are built for the people that started the business to make huge amounts of money off the people below them.
Before you rebut this and tell me that the company that I work for in corporate America is nothing but a MLM company as well, please do some research and think about facts first. I don't sell anything for a living, and I am not told to purchase the products or services that my company sells.in fact, the tools that I need to do my job are provided to me at no out of pocket cost to me. Also, my salary ratio compared to our CEO is no where near the $472:$567,899 ratio that is shown for Herbalife.
Also, please do not try and challenge these numbers. They were pulled directly from the Herbalife website.
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