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Thursday, May 10, 2007

Getting fleeced by Multi Level Marketing (MLM) schemes

I have warned people about pyramind schemes - oops! MLM (Sorry for the Freudian slip).
As a health and fitness professional, I receive approaches every week. USANA is one of the big movers and shakers. Read my earlier posting about these parasitic scams.

Did you know:
  • 67% of USANA distributors never make a cent from their wonderfull business
  • 86% never make enough to cover their monthly minimum purchases.
  • 72% of the compensation goes to just 2.6% of the agents
The fact is this: If you are not high in the food chain then you are sure to be sucked dry by the parasites above you.

These schemes poison relationships, ruin friendships, create tension at work and cost you money and damage your self esteem.


Unknown said...

Gary, Gary, Gary....

You obviously are not well read, let alone directly experienced, with Network Marketing or you wouldn't have wrote what you did!

And what makes it even worse, much much much worse, is that you've repeated with investigation, the figures from someone who also is not experienced in MLM...definitely in USANA.

Apparently didn't even care enough to look at the reports that have come out by A.G. Edwards and other Wall Street institutions discrediting the allegations made against USANA which have also explained why the so-called "facts" you posted are inaccurate, taken out of context, and misrepresented/

You sir, are doing, and have done immense and irrepairable harm to not only the MLM and Network Marketing Industry in general, but to USANA in particular, as well as undermining the health and well-being of millions of people around the world with your inaccurate representations.

I'm sure you'll take a defensive stance when you read this and most likely won't post it since it would be seen as not validating your arrogant and intentionally biased point of view.


Gary Moller said...

Thanks for writing Katherine. Robust debate is appreciated.

I am as familiar with MLM schemes as most and do not like what I see. You have not actually said anything of substance that comes anywhere near getting me to change my view. Please read my earlier posting
Perhaps you might like to refute the maths that show why people must surely fail to make money if they are not on the upper rungs of these pyramid business structures?

Anonymous said...

Hi Katherine

I'm interested in Usana and would like to see the AG Edwards report on Usana. Do you have a link to the report?



Gary Moller said...

These reports say nothing for the downline agent or of the ethics - only of the huge profits the people at the top are making. Be very cautious before signing up as an agent.

Roger said...

It is disappointing to see someone using their perceived expertise in health care to disseminate slanderous and mendacious rubbish such as the Minkow video. It is interesting that someone so critical of a (rival) supplement seller can be so disingenuous as to reproduce the propaganda of a convicted fraudster with no criticism whatsoever.Please, Gary, stick to your area of expertise and refrain from commenting on an area you have little knowledge about-but very strong opinions!

Anonymous said...

Well like anything you have to work hard to succeed. USANA is no different, it can be very rewarding if you put the effort in. Yes a lot of people sign up expecting it to be a get rich quick scheme, but nothing is otherwise we'd all be doing it! So all these people that sign up and then don't bother actually doing anything (which lately has been me) obviously put a damper on the previously mentioned figures. I'm not about going out and hassling my friends, i just continue to take USANA for me and if anyone asks me about it i tell them. I may not be making much now but i am only young and have plenty of years to watch the business grow. MLM is not for everyone but it's definately a way to get ahead and get out of the rat race. Life is all about seizing opportunities and learning from your experiences and being able to enjoy living, not working a 40 hour week just so you can struggle to pay your bills. So don't knock MLMs just because they are stepping outside the box and actually trying to have a life.

Gary Moller said...

Thanks for the comments Sezza.

Sadly nobody has yet adequately addressed the many concerns that have been raised in my article. Perhaps it is because they cannot and the only resort is to shoot the messenger.

I do not disagree with your approach to life which is commendable; the problem is the vehicle you are using to get there.

There are much better ways to make a living than via pyramid schemes that leave the vast majority of participants broke and lonely.