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Multi-level marketing (MLM) is known by a variety of names: network marketing, referral marketing—and more pejoratively (and/or when done unethically), pyramid marketing. In this structure, marketing and sales reps not only receive compensation for their own sales, but also receive a percentage of the sales generated by other salespeople they recruit (commonly known as one’s “downline”). (See also Referral Marketing)


There’s another positive that consultants always emphasize: friendship. MLMs often provide a sense of belonging for their consultants; a crucial lifeline for moms sitting at home with only the kids to talk to. “I had come out of a rough situation, a custody battle,” Sophie says. “I was lost. I had no friends, I had no social life. And then instantly I had this giant family of women who I didn’t even know. ‘We love you. What do you need? Let me help you. You’re having trouble with sales? Let me share my customers with you. You can’t make an order this month? Let’s trade shirts so we have new inventory.’ It was a true, true sisterhood.”

A long time friend that you lost touch with for the last 10 years gives you a call and asks to meet up. After meeting up and breaking the ice, he/she then introduces a new revolutionary product and how you stand to get rich by selling it. Throw in jargons like passive income and downlines, you suddenly realise you’re beginning to be sucked into the dream they are selling.
Take Rodan+Fields, a skincare line developed by the dermatologists who created Proactive. It’s supposed be top-notch stuff. When they initially launched the product, they went the traditional retail route. Estee Lauder then bought the company for an undisclosed amount and continued to sell it through traditional retail. Sales of Rodan+Fields were surprisingly lackluster, however, so its former owners bought the company back and implemented the MLM model. Sales of the product skyrocketed to over a billion dollars. They’d claim it was thanks to the word-of-mouth marketing MLMs facilitate. I’d venture to guess it had more to do with the fact they have a captive customer base amongst the hundreds of thousands of distributors who are required to make minimum purchase amounts each month and recruit other distributors who will have to make minimum purchase amounts each month too.
Network marketing is a system in which a manufacturer pays people outside the company to sell its products and services directly to consumers. In return, each salesperson is given the opportunity to build his or her own independent sales force, called a downline, by recruiting, training, and motivating others to sell the same products and services. The products are sold outside of a fixed retail location, primarily one-on-one, at in-home gatherings, and product demonstrations. Typical products include personal care products, wellness items, cleaning compounds, educational tools, and home decorations.
It sounds like the title of a children’s book, but like so much else that you learned in kindergarten, it’s true. Everyone’s body is different – but everyone’s endocannabinoid system is really unique. For reasons we don’t fully understand, receptors in the endocannabinoid system don’t respond predictably to cannabinoids from person to person. This lack of a predictable response makes standard dosing tricky.
Many MLM companies do generate billions of dollars in annual revenue and hundreds of millions of dollars in annual profit. However, the profits of the MLM company are accrued at the detriment to the majority of the company's constituent workforce (the MLM participants). Only some of said profit is then significantly shared with individual participants at the top of the MLM distributorship pyramid. The earnings of those top few participants is emphasized and championed at company seminars and conferences, thus creating an illusion of how one can potentially become financially successful if they become a participants in the MLM. This is then advertised by the MLM company to recruit more distributors to participate in the MLM with a false anticipation of earning margins which are in reality merely theoretical and statistically improbable.[14]
It sounds like the title of a children’s book, but like so much else that you learned in kindergarten, it’s true. Everyone’s body is different – but everyone’s endocannabinoid system is really unique. For reasons we don’t fully understand, receptors in the endocannabinoid system don’t respond predictably to cannabinoids from person to person. This lack of a predictable response makes standard dosing tricky.

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Now that companies can easily sell directly to their customers online, people look to social media to get their recommendations for products, and the popularity of subscription beauty boxes, not to mention the fact that there are so many retail stores even in the most far out suburbs, I don’t see how the network marketing model is necessary anymore. The only people who defend them are the people who were trained to. This is because MLMs love to brainwash you into defending them against naysayers and demand you go on the offensive to anyone who might disagree. They may still have wide-eyed hope. It’s sad and terrible. The sooner these pyramid schemes are declared illegal and go out of the business, the better off the world will be.
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