Let's talk MLM, pyramid, direct selling.
- Thread starter JP4CY
- Start date
Anybody interested in this stuff should listen to this podcast:
https://podcasts.apple.com/us/podcast/the-dream/id1435743296
I believe Hulu or Netflix did a show based on the podcast, as well. My wife fell into the MLM world briefly after she started staying home with our kids (i.e. she was the ideal target). Thankfully, we were adamant that she would not do any products that required you to front any money for products. She did Avon, then Thirty-One, then she dropped it. We still probably lost $500 in her buying products for herself. She went to a couple conferences and her eyes were opened to how crazy it was.
I absolutely believe many of these companies prey on stay at home moms intentionally. Most of these women are struggling to find their purpose and place in the world while caring for little ones every day. These MLMs prey on that to get them to buy into the "be your own boss" message, without telling you that you're the boss of a $0/yr company.
We had a friend who sold Luluroe and it was IN-SANE. She had $30k of inventory in her basement. She converted the whole basement to a "boutique" and would have 30 women stop by on a Saturday to buy stuff. Even then, they shared with us that they made zero money from the business. She qualified for the cruise every year yet somehow, never profited because she was always buying new inventory. It really showed me how impossible these MLMs are for someone at the bottom to succeed.
https://podcasts.apple.com/us/podcast/the-dream/id1435743296
I believe Hulu or Netflix did a show based on the podcast, as well. My wife fell into the MLM world briefly after she started staying home with our kids (i.e. she was the ideal target). Thankfully, we were adamant that she would not do any products that required you to front any money for products. She did Avon, then Thirty-One, then she dropped it. We still probably lost $500 in her buying products for herself. She went to a couple conferences and her eyes were opened to how crazy it was.
I absolutely believe many of these companies prey on stay at home moms intentionally. Most of these women are struggling to find their purpose and place in the world while caring for little ones every day. These MLMs prey on that to get them to buy into the "be your own boss" message, without telling you that you're the boss of a $0/yr company.
We had a friend who sold Luluroe and it was IN-SANE. She had $30k of inventory in her basement. She converted the whole basement to a "boutique" and would have 30 women stop by on a Saturday to buy stuff. Even then, they shared with us that they made zero money from the business. She qualified for the cruise every year yet somehow, never profited because she was always buying new inventory. It really showed me how impossible these MLMs are for someone at the bottom to succeed.
My mom was into one of these for a short time. My step-dad said they made more from the Tax benefits than anything else.
That is unique. In my experience they all claim to make money hand over fist.
We were in a small church group together where couples would share their struggles. So, to the outside world she was killing it. But they opened up to say they weren't even breaking even while she was going through $100k in inventory each year.
My wife has a very, very non pushy Pampered Chef friend. Tools, cutting boards, baking dishes have all held up well.
The only PC thing she hated was a freezer meal party where it came out to spice jars and sauces being like $15 bucks an item and the meals weren't great.
Not sure if already mentioned, but the Lularich series on Amazon Prime was eye opening. And infuriating.
There’s a reason so many start in Utah.
It's the perfect model. Everyone who does it realizes their client base is pretty limited to family and close friends. When you have 8 siblings and 247 cousins, your client base is pretty big to start.
