MLM, again, is just a product distribution channel or technique. Ponzi Scam, on the other hand, is the misuse and unsustainable business model using the MLM distribution strategy. Direct selling is a distribution channel as well, retailing is one, MLM is, too, another technique.

The person's mindset who potentially fails at MLM business:

People who see MLM as a quick way to profit without understanding that independent marketing is crucial and having a product you are comfortable with to market is the key to unlocking the potential in the MLM industry. As a result, they felt swindled when they are unable to achieve what they set out for and falling back on the very widely-known notion that "MLM's are scams", they instinctively think the business model is the flawed one, not their own individual problem. What truly amplifies the adverse effect is when the people who failed at this industry in their own terms had approached people to sell their product or talk about their business before. When it collapses, they quit and they tell their friends, "yea, it's a scam". And naturally, word spreads and immediately defamed MLM as a whole entity in his immediate network zone.

When you set up a business, and it fails, do you blame the business? Or the person who failed to manage it?

In summary, yes, there are Ponzi scams set up within the MLM industry. There are people who explained to you that MLM makes you rich easily. There are people who failed in MLM. Why? Simply because they do not understand that MLM requires initiative and drive to market the products. It requires you to sell. It is not another job, it is a business of your own. You have to find ways to expand it and not wait for it to grow on its own.

Do not let the herd mentality cloud your judgment even before you see the road. Unless you are the kind of person who crumbles under pressure and can't say "No" to someone who tries to sell you something you do not like, I recommend exploring options in your life.

1. The majority of people working in MLMs fail to even breakeven, let alone earn any income. (Please google various top global MLMs and check their commission payout distribution for proof if you require)

2. If most of the people in MLMs have that exact mindset you described (short-term, commission driven), does that not make the industry largely a scam? Since the odds of anyone meeting an ethical MLM salesperson would be much lower.

In summary, yes, there are Ponzi scams set up within the MLM industry.

Please stop already HanMark. You seem a decent enough person, and can express your argument quite well.

However, I did a quick check on the internet and found quite a number articles with very negative remarks on world ventures. This is one: WorldVentures: This is NOT the Way to Travel the World

People even go on Youtube to warn people of MLM: Don't Fall For Multi Level Marketing - YouTube

Unbelievable.

If jobs are commission-driven and doesn't have basic, regardless of what sales industry, there will be people who are unethical and do whatever it takes to get their sales volume. It is just how society are. I have heard of insurance agents misinterpreting their policies and the clients didn't manage to receive coverage when stuff happens.

There will be black Sheeps everywhere, it's survival over morals. Yes, the problem with MLM is the fact that marketing is done through people to people and I am sure, misinterpretation will be commonplace in the process and information are relayed in the wrong light.

Internet sources, third party sources are all one side of the coin. I can't control or justify both sides of the coin. Both has its perspectives and really, we have to look at both sides and judge for ourselves. What people hate, you might love it, what people love, you might hate. Nothing can please everyone, in short. I am sorry to say, my answers can never please everyone.

Mlm
 

lets keep this mlm thread going to spread awareness and to warn others of being scammed.

I'll share first.

First MLM encountered: Inlife, located at eunos in a warehouse next to auto dealers. Sells health products imported from china.

Pay structure: You have to pay 1.3K to your superiors to join. Recruit or scam your friends to earn back your cash and get promotions. No refunds of your 1.3K. They mainly scam nsf who do not know about MLMs yet but have the cash to join.

My reaction: A bit skeptical during the sales pitch. They told me to not do research on MLMs at home and join them right away. I knew it was a pump n dump when they said that. Did research at home and found out why they didnt want me to search the web for MLMs, and why they wanted me to sign a binding document/contract on the spot.

And one more thing, if you see posts supporting HanMark like the ones above, it is 100% written by him to support himself. I know the sales tactics of MLMs after my research.

Check out Nu Skin Enterprises.
Like I said, there will be black sheeps.
But again, killing the industry off based on black sheep companies within the industry means your research hasn't been thorough.

Yes, I wrote all of the posts. Is there anything you want to clarify about MLM? Any inconsistencies you want to clarify?

Did you join inlife in the end? Just asking

My first encounter was 10 years ago just into my first job in a foreign bank. My NS buddy dabbled in this MLM company called Unicity.

Their office was in Ngee Ann City and my buddy pestered me to come down to some forum, he said I would get the opportunity to network with some of Singapore's high society members.

It was a joke. These guys were just going up stage one after another trying to impress the audience by doing lame things like showing photos of what cars they have (mainly BMW/Merc/low end Porsche), waving business class boarding passes claiming they travel around the world all the time and some idiot went up keep talking about his Rolex watch.

Even at that time as a newbie in the bank, I've seen enough successful and rich bankers/clients to know these morons were a bunch of frauds trying to smoke ignorant people with cheap tricks.

What do they sell?