Stumbled on this long article, worth a read, below is the link to the full article in details
multi-level marketing (MLM) organization Also known as networking companies
Bad Image or Bad Reality?
“Let me tell you about an incredible ground-level business opportunity,” and you are invited to a house or to lunch for “a discussion.” Funny enough, you feel sick in your gut that there is some hidden agenda or deception. “Probably a multi-level marketing (MLM) organization,” you think. Suppose it is? Should you trust your instincts? Is there anything wrong with MLM?
By way of review, the prospective MLM initiate has to face and resolve these ethical issues:
Do I want to be involved in encouraging people to be more materialistic?
Do I want to sell a product that perhaps couldn’t be sold any other way?
Do I want to be a part of an enterprise famous for slander, libel, and rumor?
Do I want to be a part of a company that may employ criminals as marketing experts?
Do I want to make money off my ability to convince people that an unworkable marketing system is viable?
Do I want to be known among my friends and family as a person who tried to con people with a thinly veiled pyramid scheme?
If you can answer these questions “yes,” training is available… But remember that God is watching, even if you never get “successful” enough for the Feds to notice you.
Summary of What’s Wrong With Multi-Level Marketing
MLMs are “doomed by design” to recruit too many salespeople, who in turn will then attempt to recruit even more salespeople, ad infinitum.
For many, the real attraction of involvement in multi-level marketing is the thinly veiled pyramid con-scheme made quasi-legal by the presence of a product or service.
The ethical concessions necessary to be “successful” in many MLM companies are stark and difficult to deal with for most people.
Friends and family should be treated as such, and not as “marks” for exploitation.
This article will analyze four problem areas with MLM. Specifically, it will focus on problems of I) Market Saturation, II) Pyramid Structure, III) Morality and Ethics, and IV) Relationship Issues associated with MLMs. Thus, you can properly assess your “instincts.”