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Multi Level Marketing at it’s Worst

October 6th, 2007 by Terry

Blogging along and following loosely on from Monika’s last post on Business Reflections, I’d like to enlighten you on the dark side of MLM (Multi Level Marketing).

I too got a nasty shock when I discovered the one and the same (allegedly) natural health MLM company about two years ago. Oh yes, I went along to the induction meeting of this particular company that I won’t name - not because I’m worried about any backlash, but I just don’t want to give them any more publicity!

I could have been easily sucked into this, because I had no knowledge of this type of marketing and didn’t have the online street-wiseness I have now. I was fortunate because at the time I was totally broke!

I was invited to the meeting by a local area rep as I’d found a website that promised I could make a lot of money by working just a few hours a week.

Ring any bells with anyone?

Well, the name of the company was not displayed anywhere that I could see on the website, so I completed the online form was was emailed back within a couple of hours.

Let me tell you something of how this insidious brain washing session went.

It was only on the way to the meeting that the rep told me that it was for a company called (something like) Herbal Death (ok, if you didn’t already know, you do now).

Catch number 1: Who would be strong enough to slam on the brakes and dump the lady out of your car at that moment? Of course I would go to the meeting - I was already on the way, wasn’t I?

In the meeting place were about thirty people. I guessed most were already reps for the company and maybe a handful of new recruits like me. The presentation began with a high ranking member of the company introducing things, then handing over to another guy who took us through a slide show about how great the company was, how much money it made and how much money each rep could potentially make.

Catch number 2: We were already being indoctrinated into the company methodology with the promise that we could earn lots of money.

The meeting went on with different people getting onto the stage and telling how they’d prospered with this company. Being a hypnotherapist, one thing I learned when training was how to read people’s body language. I was mentally noting how each person was standing and what they weren’t saying. Some of those speakers were not sincere. In all cases, each speaker ended their speech with the words “Thank you, Herbal Laugh”.

Catch number 3: Make everyone believe that anyone who joins will make money because everyone you see on the stage (a position of authority, by the way) tells you that they have. Then blatantly reinforce it by showing you their cringe-worthy gratitude to the company.

I was awake, alert and smelled a very big rat.

As I looked around at others in the small audience, the tell-tale signs of glazed over eyes and blank faces told me that brain-washing tactics were at work here. There were probably subliminal hooks in the visual slide presentation. I knew to constantly switch my attention to different points in the room to avoid succumbing to them.

To cut a long story short, there was a break in the proceedings where my rep came and found me and started introducing me to some of the other reps. They all seemed like affable, unoffensive and even likeable people. Then she took me to a table at one side of the room and showed me some of the products that this company sold and began explaining what each one did or how it should be used by prospective customers.

That explanation cleverly switched from the third person to the second person (you can take so many spoonfuls of this every day to lose weight…etc).

Catch number 4: Impress on your new (expected) sign-up what these products will do for them. Make them want them for themselves!

Then came the forms she wanted me to sign - there and then, on the spot.

Catch number 5: Don’t give the potential new client a chance to think about it. Get their signature!

She expected me to pay her €120 up front for the promo packs of products and sign my life away right there right then.

As I already said, fortunately for me I was totally broke.

I told her so. She suggested I pay by credit card. I told her I did not possess one. She was still not fazed. She suggested I could go to a cash machine and draw out the cash and she would accompany me!

Jeepers, Batman! What part of totally broke did she not understand?

I told her I was leaving. She said I could take some time and think about it and she’d call me later. She followed me out the door still trying to get me to sign the papers - I could always cancel later…

Yeah, right!

That bad experience warned me off any form of face to face MLM for ever!

So to anyone even considering getting involved with the likes of Hobble Life, it’s my belief that their induction tactics are underhand and unethical (although nothing can be proven with any solid evidence, only anecdotal).

There are better ways to make money than pestering the living daylights out of friends and family… until you no longer have any friends and your family disowns you!

Terry Didcott
Author and Creator of Blogging Web 2.0

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10 Responses to “Multi Level Marketing at it’s Worst”

  1. The Honest Way » MLM Nightmare? Says:
    October 6th, 2007 at 3:51 pm

    [...] posted the whole article over on my JV blog at Blogging Web 2.0, so this post is really just a plug for another blog I write [...]

  2. Monika (79 comments.) Says:
    October 6th, 2007 at 11:59 pm

    LOL Terry,

    I didn’t know that we both got sucked into the seemingly same MLM company. :-) Well actually I got sucked in, you were a lot smarter. Believe me that it cost me around 50,000 until I realized that I had been brainwashed.

    I personally never used those “sucker tactics” this lady tried on you. Maybe that’s why my team never grew much. :-) Being too honest myself I always told people how hard it really is to make good money until much later in MLM. I guess I scared them away to never to be seen.

    In hindsight I probably did them a favor anyway. Plus my friends and my family. :-) It’s so funny how you write this as it is spot on! I just hope that others learn, before it is too late.

    Funny thing is that I also write for an MLM blog and sometimes it is so hard to come up with stuff as I know now how MLM really works.

    Great post!

    Monika

  3. Terry (82 comments.) Says:
    October 7th, 2007 at 2:51 am

    That must be hard to do when you don’t believe in something.

    Herbal Leaf is a huge company made extremely rich by their clever and I believe underhand recruiting tactics and people’s perennial desire to get rich quick and easy. To me, that stinks!

    That was a lot of money to lose as well. I bet the company made double what you lost from your efforts too. That’s the really crap part of MLM. The sharks at the top of the pyramid make indecent amounts of money for sitting on their backsides all day while the grafters under them have to struggle to pay the bills. The shame is that all big companies work pretty much the same. And all their employees are actually grateful for being given a job working crap hours for peanuts to fund the rich lifestyle of the fat cat bosses.

    I HATE big companies period.

    Terry

  4. Monika (79 comments.) Says:
    October 7th, 2007 at 6:28 pm

    Terry,

    It’s not that I don’t believe in MLM at all. I actually like the business model of MLM. What I don’t believe in is the antiquated sponsoring systems they are still using and preaching about. You know, the ones where you talk to all your friends, make a huge list and drop flyers in the letter boxes.

    This is simply crap and doesn’t work. All it does is alienate your friends form you and drive you into bankruptcy whilst the company makes a killing on your “blue eyed” lack of knowledge.

    I always state this on my MLM blog posts and I certainly don’t buy into hype anymore. That fact make is sometimes hard to write I agree as I have to find words that stay factual and not boost some companies ego to help them gain more “disciples”.

    But I believe that by writing about MLM I can insert my own experience into the soup and hopefully help somebody from getting sucked into MLM the wrong way. If they understand the intricacies of MLM and that it really only boils down to effective marketing, then I’m happy.

    Monika

  5. Sharon Horswill (3 comments.) Says:
    October 11th, 2007 at 5:07 am

    I actually still use some Herbal Letsnotlibel products. I left a while ago but get mates’ rates from one of my downlines in another program (lots of incestuous goings on in my various teams!). No, this isn’t about to praise them …

    The company is nearly 30 years old and still uses - and teaches - 30 year old methods. Why is that? Can’t some expensive marketing guru drag them into this century? Even though I’m a real tough cookie I was bullied into spending a fortune on products. I should have seen it coming but I was keen to make a success of it and stupidly thought spending money would achieve that. As if.

    So we ended up with boxes and boxes of stuff which was apparently absolutely essential for good health, despite the fact that I had managed very well without it for 52 years and didn’t even know what most of it was supposed to do even after diligent study of the manuals.

    Brilliant plan - let’s flog it on eBay!

    So we spent hours taking our own photos and preparing listings etc. Two days before the listings ended we received an e-mail from Herbal Letsgolitigating accusing us of selling counterfeit goods and threatening closure of our eBay account. They gave us 24 hours to respond, with information most people won’t have, in the middle of a postal strike.

    We immediately resolved to sue Herbal Justwhodoyouthingyouare for loss of eBay sales and defamation. I searched the depths of my ancient law degree and wrote to them demanding statutory references, retraction of the their defamation, rebutting their alleged “grounds” etc etc. That was enjoyable, albeit timewasting. Funnily enough they didn’t respond and the eBay sales when through.

    So you buy products in good faith and then the heavies lean on you when you sell them at a loss on eBay. I can’t abide this corporate bullying. It’s disgusting. It’s fair enough that companies don’t want their distributors selling on eBay but leaning on people who have left !! Even worse, leaning on bona fide customers !!!

    I still believe you can build a good business with the nutritional companies but you need to choose one that suits you and certainly not one out of the ark. I’ve written an article on choosing the right company which I won’t plug here.

    Excellent site, chaps. Keep up the good work!

    Sharon

  6. Monika (79 comments.) Says:
    October 11th, 2007 at 5:54 am

    Haha Sharon,

    That is just too funny as I can see a mirror image in you with PillLife. I actually left them because of their antiquated methods. I got so sick of all the bull that was going on with my up lines and the fact that they had absolutely no idea on marketing (and still don’t have might I say) and the hype of having to buy this and that.

    Naturally they are ever so subtle by making it out that YOU were the person choosing to buy in the first place and that nobody ever pressured you.

    In the end I do blaim myself for having been so green behind the ears of believing all that shit that was spoon feed to me.

    I still believe that they should be sued for misleading practices as so many MLM out there which is a real shame.

    Thanks for the great comment Sharon and its great to see you over here too. :-)

    Monika

  7. Terry (82 comments.) Says:
    October 11th, 2007 at 1:44 pm

    Hi Sharon,

    That was an incredible comment - you should write us a guest blogger post although we might have to limit you to 2,000 words (LOL)!

    Joking aside, I can just picture the faces of those Verbal Lice bosses screwed up in anger at you daring to flog their precious products for what they’re probably really worth on eBay!

    Thanks for joining in here with us, you’re more than welcome anytime

    Terry

  8. Sharon Horswill (3 comments.) Says:
    October 11th, 2007 at 2:43 pm

    Verbal Lice. Love it. I wish I’d thought of that one. Anyone watch the first series of Ugly Betty? Betty’s sister was a “Herbalux” distributor and wore a huge badge. It was beautifully observed and very funny, especially when she got kicked out for some misdemeanour.

    Moving on to attacking a company which shall remain nameless beginning with A …. I actually learned a lot from one of their presentations by Randy Schroeder. He’s interesting to listen to and presents the whole concept of network marketing well. BUT …. after he’s spoken the local (OMG how embarrassing - the entire empire is based not half a mile from me in Southampton) King and Queen of A stand up and spout in a very cringeworthy manner. Call me picky but I never quite understand how “we’re going to Hawaii on a compnay trip!” actually helps, or indeed impresses, the poor saps who have just parted with $1000 and are now expected to get their friends to do the same.

    I have a nice line in helping the local A- people, I get them a tax repayment on their HUGE losses and I helpfully steer them towards another program, that is those who haven’t been put off for life.

  9. Sharon Horswill (3 comments.) Says:
    October 11th, 2007 at 2:44 pm

    I never could spell the word company. Not good when I’m doing corporation tax ….

  10. Monika (79 comments.) Says:
    October 11th, 2007 at 9:51 pm

    Herbalux,

    I love it :-) Shame I missed that particular episode. Actually I only ever watched two of them and they were hilarious alright. Just haven’t got time for TV.

    Monika

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