MLM zou kenmerken van een sekte hebben: MLM-ondernemingen spelen sterk in op spirituele behoeften van mensen om in een hechte gemeenschap zinvol werk te verrichten. De MLM-onderneming zou haar verkopers een kans bieden in een oneerlijke zakenwereld. Uiteindelijk wordt echter het zakelijk risico op de verkoper afgewenteld. De 'familieband' die aanvankelijk tussen de leden leek te bestaan blijkt weinig waard.
But even if LuLaRoe were to go out of business tomorrow, another MLM pushing scented candles, jewelry, or kitchen products would rise up to take its place. “The regulators cannot keep up with these companies,” Brooks says. “There are so many of them. When one company blows up, the founders and high-level distributors move on to another company, and it goes on and on.” At best, LuLaRoe is a company that grew too fast; at worst, it consciously preyed on business-naïve communities eager for a sense of self-sufficiency.
Hemp is a bioaccumulator, meaning it is capable of absorbing both the good and the bad from the air, water, and soil in which it’s grown. This makes it all the more important to know that your CBD oil comes from organically grown hemp that can be tracked to its US-grown source. The last thing buyers want is for their CBD oil to have accumulated toxic substances such as pesticides, herbicides, or heavy metals. For decades, farmers have used pesticides to protect crops against insects, disease, and fungi – and have used herbicides to control weeds – but we’ve known for quite some time that chemicals used to harm other species can also be harmful to our own species. That’s one big reason behind the global push to go organic. People are starting to prioritize organic crops, whether you’re talking about fruits, vegetables, grains, legumes, nuts, livestock feed – even textiles like cotton, wool, and flax.
Robert Fitzpatrick is the foremost expert in the analysis of MLM’s, both from an economic perspective and from a moral perspective and this slim work is a perfect distillation of his years of research in the industry. I spent a quarter of a century working at the corporate headquarters of a nearly 50 year old MLM and I can attest that Mr. Fitzpatrick’s take on the business model is spot on. MLM, direct sales, whatever you want to call it, it’s all a recruitment-based pyramid scheme where less than 1% even make a profit, let alone a living. And all the arguments that most people only sign up to do it part-time or to get discounts on products is in direct contradiction to how MLM’s market to prospective recruits. They promote a life-changing opportunity, a chance to win a car, buy a new dream house on an island somewhere, to build an organization of salespeople below you so that you can sit back and live off “passive income” while the people below you do all the work. I think that on some level, we all feel that there is something inherently wrong with MLM, this book puts words to those feelings. For anyone interested in being in a MLM, or who is already in one, ask them to send you an income disclosure showing what the typical salesperson earns in that business. If they stonewall your attempts to get the information, that is a dead giveaway and you need to get out. On the other hand, if they give you the info but ask you, “but you don’t want to just be average, do you? You want to do better than that, right?” be aware of this because you are dealing with someone who wants you to deny simple math. What they are asking you to do is to ignore the day-to-day reality that 99% of the industry fails and the only reason to ignore it is because they want to make sure that you give them your money in order to pad their commission check. Before you take part in any direct sales opportunity, look into Mr. Fitzpatrick work, this book and on his website. False Profits should be required reading for anyone interested in signing up in a MLM because it will arm you with the knowledge you need to be able to make an informed decision.
Le aziende che realizzano modelli MLM sono spesso soggette a critiche e azioni legali che nascono in particolare per le analogie fra questo sistema e gli schemi piramidali illegali, per i prezzi imposti, i costi d'ingresso (come la vendita di materiali promozionali e scorte di prodotti ai nuovi agenti), l'enfasi data al reclutamento di nuovi venditori invece che alla vendita dei prodotti, lo sfruttamento delle conoscenze e delle relazioni personali per vendere e reclutare, gli schemi di retribuzione complessi, i costi di materiali "formativi" e sulle tecniche motivazionali usate da alcune aziende al limiti del culto della personalità.
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Much has been made of the personal, or internal, consumption issue in recent years. In fact, the amount of internal consumption in any multi-level compensation business does not determine whether or not the FTC will consider the plan a pyramid scheme. The critical question for the FTC is whether the revenues that primarily support the commissions paid to all participants are generated from purchases of goods and services that are not simply incidental to the purchase of the right to participate in a money-making venture.
There are thousands of unique varieties of hemp. The cultivars used for CBD oil contain significantly higher concentrations of CBD than others. Using these uniquely potent plants, it is possible to extract cannabis oil that contains significant levels of cannabidiol, as well as essential vitamins, minerals, fatty acids, terpenes, flavonoids, and other non-psychoactive cannabinoids.
Let's say you tried to make it sound, and said "Forget the multilevel recruiting, I'm going to focus on selling the product." Is anyone doing that successfully? It would not appear so. During yet another lawsuit in the UK, the government found that less than one in ten participants ever sold even a single product to another person. Since the company has its distributors as a captive audience required to make regular purchases, the products are typically grossly overpriced compared to similar products available in supermarkets. This makes their sale a dubious prospect for those few distributors who ever do attempt retail sales to customers. Surveys show that nearly all products purchased by network marketers are consumed by the distributors themselves.
Sales started to decline in the third month. Her consultant group told her it was because she didn’t have enough inventory, so Ashley followed their advice and bought even more. As sales continued to decline, she used her income-tax rebate to buy more, but it didn’t keep her sales from bottoming out at $500 a month. “There was a point in time where I had $8,000 worth of inventory sitting in my home while I was running up to food banks to feed my family,” she says. “I really feel like I failed my family.”
Inmiddels draaide de FTC in 2016 hun positie terug tot vóór de Amway-uitspraak van 1979, in een regeling met Herbalife, een van de vele MLM-bedrijven dat ontstond op basis van de uitzondering die door de Amway-uitspraak geschapen was. De FTC geeft verder de bedoeling te kennen om de principes van de regeling met Herbalife op de rest van de industrie toe te passen, wat tot gevolg zou hebben dat MLM-bedrijven als directe verkoopbedrijven georganiseerd dienen te worden, net als Herbalife, met verwijdering van alle piramide-elementen, met name de aankoopplicht voor deelnemers die gewoonlijk toegang geeft tot deelname in de piramidecompensatie. Als gevolg is de Europese wetgeving thans op dit punt nu door de feiten achterhaald; een en ander was gebaseerd op het klakkeloos, en foutief aannemen, dat de Amway 79-uitspraak MLM onvoorwaardelijk legaliseerde. De Herbalife-kwestie nu, en meer nog in verband met de gelijktijdige zaken van Zeek Rewards (aanhangig gemaakt door de SEC; resulteerde in strafvervolging en gevangenisstraf voor de oprichter) en Vemma (vervolging als piramidespel door de FTC), maken duidelijk dat MLM in de ogen van de huidige FTC altijd of bijna altijd een piramidespel is. Of, zoals de FTC voorzitster Edith Ramirez zei in een persconferentie: Herbalife moet nu beginnen om als een legitiem bedrijf te gaan functioneren. Voorheen was dat dus kennelijk niet het geval. Op 6 september werd er door de FTC een regeling getroffen met Vemma, de oprichter Benson K. Boryeko en de topdistributeurs Tom en Bethany Alkazin, inclusief een permanent verbod om ooit nog in de MLM-industrie deel te nemen, alsook een geldelijke regeling.
Working 20 to 30 hours a week, Brickey says he participated in mandatory conference calls with other Pre-Paid Legal associates to talk about sales and ways to generate more business. He also says he held in-home presentations to try and sign up new customers, placed flyers at the public library and on parked cars, and passed out business cards in front of the neighborhood grocery store. But three months after joining and with virtually no income to show for it, Brickey was ready to call it quits. “I’m really frustrated with the whole thing. … I was in an income crunch and I was trying to be positive and give it a chance.”
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As noted in the report by Booth, Page, and Bohlmann, various strains of cannabis plants produce terpenes differently. Commonly, hemp plants contain less terpene-rich resin than marijuana plants. The amount of resin found in hemp plants, however, does not affect the quality of CBD that we obtain from them. In fact, hemp plants are a far better source of CBD than marijuana plants.
In the meantime, some physicians are forging ahead — and cashing in. Joe Cohen is a doctor at Holos Health, a medical marijuana clinic in Boulder. I asked him what CBD is good for, and he read me a long list of conditions: pain, inflammation, nausea, vomiting, intestinal cramping, anxiety, psychosis, muscle spasms, hyperactive immune systems, nervous system degeneration, elevated blood sugar and more. He also claimed that CBD has anti-cancer properties and can regenerate brain cells and reduce the brain’s levels of amyloid beta — a kind of protein that’s been linked to Alzheimer’s disease. I asked for references, noting that most of these weren’t listed in the Academies report or a similar review published in the Journal of the American Medical Association. “I think you just have to Google search it,” he said. It’s true that a preliminary study found hints that cannabinoids might reduce beta amyloid proteins in human brain cells, but the study was done in cells grown in a lab, not in people. As for cancer, the FDA sent warning letters last year to four companies that were selling products that claimed to “prevent, diagnose, treat or cure” cancer.