Who Stole the American Dream? [Paperback]

He even goes on to suggest "that most MLM corporations to make sure to do their dance one step removed from "illegal," to keep themselves clear of charges of pyramiding, ponzi schemes, or racketerring."

What planet has this guy been living on for the last 25 years? Is he not aware that even the hardened FTC gave Amway, the great grandaddy of MLM corporations a clean bill of health regarding their marketing strategies way back in the late 70's?

Is he not aware that major corporations, those who have a lot to lose by aligning themselves with less than desireable marketing plans or companies now utilize MLM or Network Marketing?

MLM or Network Marketing has come of age. It is the "Wave of the Future." It is the opportunity of the century and especially in times like now where we are entering into a jobless society.

MLM is way of marketing. Yes it has layers of management but don't all corporations also have layers of management?

Obviously Mr. Theobald did n ot take much time to truly investigate MLM or he would know that MLM is not an "illegal pyramid scheme." Also, he should know that MLM does not "hire" people. MLM offers business opportunities to independent contractors. This is not a "job" so the supposition that "you should not have to pay for a job" holds about as much weight as Mr. Theobalds other ridiculous charges.

As far as MLM products being "overpriced", MLM products are more expensive because they are of a better quality.

Since this individual mentions Amway repeatedly, I have to wonder if Mr. Theobald just has a gripe about Amway in particular in place of the overall MLM industry. I also have to wonder if he tried a "poke it with a stick method" in the MLM company that he obviously failed in.

Mr. Theobald also conveniently forgets to mention the wholesale discounts that MLM representives get so the accusation that "changing your buying habits" would put a strain on a new recruits cash flow is without basis. Also, I know of no good MLM company that "requires", as Mr. Theobald suggests to buy huge amounts of products. So once again, Mr. Theobald's comments are without basis.

MLM may very well be the last bastion for true financial freedom. Why knock it?

And Mr. Theobald, try reading the book with an open mind and get involved with a good MLM company that offers good products and a personal development program as well.

Although I am not an Amway distributor, I would suggest that Mr. Theobald enroll in Amway just for the personal development. It will clean out your mind of junk obviously from reading too many tabloids or even other supposed respectable publications that only print the "hype" against MLM.

Enter PREPAID LEGAL SERVICES, INC. A 31 year young NYSE corporation that markets North American wide access to top lawfirms for less than a cup of coffee per day. You can start your own business for less than [dollar amount]. Never worry again about being unemployed. ...

I say "unethical" since most MLM corporations make sure to do their dance one step removed from "illegal," to keep themselves clear of charges of pyramiding, ponzi schemes, or racketeering.

The premise of your average MLM is this: the parent company manufactures, purchases, or makes available a certain quantity of resources. It hires "distributors," who are individuals working through a class-S or another form of single-individual company. These individuals, in the process of selling the resources, also recruit other distributors whose sales activity will be credited to the recruiting distributor in the form of commission.

Over time, it is supposed that the original distributor will have hired so many others and receive commission on their work, that it will no longer be necessary to sell resources themselves, and simply relax while collecting the commission reward for bringing on board the other distributors that individual recruited. Of course, it is expected that any new recruit "change their buying habits" to purchase resources from the company, rather than another source, in order to credit the people above them in the food chain.

The problems here are several:

* The original company has no territory policy to protect its distributors (i.e., you and your next-door neighbor could both end up selling the same AmWay products, competing against one another in close quarters). Under a normal sales practice, salespersons maintain either real or figurative "territories," in which either a geographical area or a portfolio of clients is managed by that salesperson - this originated from the recognition that it is tough enough competing against competitors, without having to worry about being stabbed in the back by co-workers.

* No one bothers to examine the economic reality of the system when in a "revival" recruiting meeting at the local Howard Johnson's. That reality being that there is only so much profit available on a single unit of resources, and the cut of the pie at the bottom tier is miniscule, if present at all. Instead, these companies focus on a hypothetical future where the new recruit will rake in money hand over fist because they managed to recruit distributors who themselves recruited distributors and so on. While distributors are enabled to sell product directly, the prime focus and the majority of activities directed, will be aimed at recruiting. By US law, hiring an endless succession of middlemen breaks the law, as a ponzi scheme.

* Often, "changing your buying habits," particularly in the case of AmWay, means buying practically *everything* from the distributor that recruited you. What is not mentioned is that the products in question are overpriced when compared to competitors or even other sources for identical items. Often these companies will tout their partnerships with such firms as "Coca Cola, GM Cars, Dell Computer" or other big-name vendors - who themselves couldn't care less who is selling their wares, so long as it moves more of their product out of the warehouse. Buying in this fashion cripples the new recruit's cash-flow further, and this can be particularly difficult if the individual is already cash-strapped and desperate to improve his or her situation.

There are better, and more successful, ways to spend your money and start your own business. MLMs are simply pyramid schemes waiting to prey on the greed and desperation of people who have not been educated about business. As a rule of thumb - if someone is unwilling or cagey about announcing whom it is that they represent, there is a good reason to avoid them. Another that might apply is that no job should ever COST you money up front - if the company is confident in its wares and its sales strategy, they will hire you and offer to pay you for your time.

If you really itch to start your own business, there are plenty of books that can help you do so - and ones that will steer you into choosing your market correctly.

Best of luck -

T