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Things MLM Leaders Won’t Tell You

June 26, 2014

The Revanchist over at YPR Pariah has a new article in which he lists some of the things that Vemma leaders won’t tell you:

  1. When a market is saturated or dead
  2. When a leader loses rank
  3. When you should quit
  4. How much they’re actually making

While he’s focused on providing critical analysis, news, and opinion on the Vemma MLM opportunity, the points he made can be applied to other multi-level marketing programs.

Readers: Use the comments section below to add to the list of things your MLM leader didn’t tell you.

10 Comments leave one →
  1. June 27, 2014 9:35 am

    One thing MLM leaders never told me is how much
    work it really takes to be part of that 1%.

  2. kilerb permalink
    July 1, 2014 1:28 pm

    I know this is a different topic but has anyone heard of 5 Lynx

  3. July 1, 2014 2:00 pm

    Looks like another MLM selling telecom, insurance, supplements, etc.

  4. Melanie Morgan permalink
    July 2, 2014 9:15 pm

    !. They don’t tell you how much money you will be spending and how much time it really takes. They instead continually tell you that you will get all your time back.

    2. In the beginning they never told us there was money made on the tools until you actually got paid.

    3. They never told us exactly how much money was in profit sharing, how much of all the revenue they actually “shared” or how you were paid exactly (formula) to verify in the profit sharing….you were just told to “trust them the money is there!”

    4.They never allowed us to read the contract when we signed it, to take a copy or take to an attorney, just told us we had about 5 times to sign it to get paid in profit sharing!

    5, They didn’t tell us how much money it will cost you on a monthly/yearly (thousands) for products or system (seminars, majors, all the cd’s & books), and that you won’t be getting a “return on your investment for years” or how much time it really takes…rather they entice and tell you over and over how much money you will make, the lifestyle you will live, (talking about all their material things they have that you can get too!) if you just plug into and follow their “proven” FULL system (meaning every cd pk, including numerous BOM, seminars & majors..

    6. They don’t tell you or teach anywhere in the detail their comp plan on the system or disclose the attrition rates or odds. They would only briefly talked about the bonus chart that Amway had.

    7. They never told us you could ‘buy’ teams to in Amway, nor if the Emeralds or Diamonds bought teams to hit ranks.

    8. They never told us there was a political and religious agenda when we signed up.

    9. They never told us they could just take our teams or decimate them, manipulate the Line of sponsorship and just stop paying you…quite the contrary.

    10. Never was told Orrin was getting a 3 million (contingency loan) that he wouldn’t have to pay back if he brought and convinced enough of us from Amway to come into Monavie.

    11. Never taught or talked about any real important business information, ROI, sales tax…instead they used that as a enticement to recruit, that “we as business owners have the same advantage and tax breaks as corporations” and “everything you do in your business is a tax write off.”

    12. Never would mention when some big leader would leader just disappeared.

    That’s a start for now, Maybe others can help too.

  5. Melanie Morgan permalink
    July 3, 2014 8:37 am

    Never told us their was a “Ron Day Rule” (didn’t find that out til many years later)….No they said it was a passive, residual, ongoing, willable, B type income and you “owned” it and you could build it whatever level of “dream” you wanted, not that the PC could take your business anytime for any reason.

    Who in their right mind would EVER “sign up” to build a business you bring in the teams, and knowing that for whatever reason they could just decide you no longer “own your business”?

    Don’t tell you when they are while they suing the critics and then try and hide their past by gaming google, I find it disturbing Orrin and his suck up men claim he is a hero concerning the lawsuit with Amway….and referring to the written the letter written 4 YEARS prior where I read Dan seems to imply there would be some kind of heroic connection and confirmation on the winning of the large class action brought against Amway by someone totally different and as far as I know or can see Orrin was not a part of that lawsuit.

    I don’t recall ever seeing that Orrin sued for “everyone”, although he wants everyone to believe that is what he did, but did he sue as a “class action” or because he said they were a pyramid scheme after around decade an half of telling everyone it wasn’t a pyramid scheme?

    They don’t tell you what the PC are really up to even though it has huge effects on EVERYONE’s business.

    It seems to me the lawsuit he brought on was for his benefit (3 million dollars?) or so he would be free to leave with all the “his business” (feared he would lose his money/lifestyle and have to start from scratch? Funny they would say if they had to start all over again they would. Hmm…This is disturbing Especially when one knows and experienced the results of the mass destructive they caused going into the Monavie registration. so it wasn’t done for everyone….Orrin said no one would be left behind…quite the contrary.

  6. Melanie Morgan permalink
    July 3, 2014 8:59 am

    They don’t tell you they WILL sue YOU (to shut you up) if you tell your story or talk about your experience.

  7. Charles permalink
    July 7, 2014 3:04 pm

    #4 – so true. When I ask somebody in MLM how much extra money they are making, I get one of three responses:

    1. No response at all.
    2. “I don’t share my personal financial information.”
    3. Not making anything now, as they are “still in the startup phase” but expect to be turning a profit “any day now”.

    What a joke. If MLM was my life (like it is for so many people) I would jump.

  8. Cali permalink
    July 14, 2014 6:12 pm

    Hey all, I have come to you asking if anyone knows anything about another MLM out there, Advocare? A family member just got involved and although I doubt I could convince them it’s not a good idea to sink their money into, at least I will be armed with info for my own sake when they come calling. When googling I just see positive kool-aidy type advocacy of this healthy life choice that costs only 200 bucks for three weeks. I love how this blog is evolving to include other MLM’s.

  9. July 14, 2014 9:45 pm

    @Cali – Wikipedia entry on Advocare – – the founder was originally a distributor from Herbalife.

    Income disclosure statements for the past several years –

    According to the 2012 IDS, ~91% of Active Distributors fall under the Distributor or Advisor levels. An Active Distributor is “anyone that earned a check in 2012 (Not bonuses). Obviously the total number of distributors is greater than the number of active distributors.

    Some back of the envelope calculations:

    The Wikipedia entry states there are roughly 60,000 active distributors. 91% of them are probably not making any money in the business if they are (1) buying $200 products every three weeks and (2) not engaging in retail sales.

    With $400 million in 2013 annual sales (again, according to Wikipedia), that could translate to the following:

    60,000 active distributors * $200 * 17 (buying products for themselves every three weeks for a year) = $204 million

    From experience, we know that there’s an emphasis on the Buy From Yourself and Teach Others to Do the Same model with many MLM companies. We also know that people are often encouraged to buy more product than they need to. Coupled with the fact that there are thousands of distributors who signed up but never became “active,” one can see how AdvoCare could get to the $400 million sales figure for 2013.

    The health, nutrition, weight-loss, and sports performance industry is rife with MLMs, and there does not appear to be anything different with AdvoCare. Some advice that you can offer your family member include keeping track of his or her income and expenses on a monthly basis and asking them if they are being taught to sell the product or if they are being taught to buy for themselves and teach others to do the same.

  10. exTEAMster permalink
    August 4, 2014 11:22 am

    Someone who recently approached me about MLMers will not tell you the business is an MLM. Someone who recently approached me about Melaluca told me with a straight face that its not an MLM. I asked how it’s different considering income is derived from selling products to others and you earn a percentage based on how many people they sign up to buy products. The best answer they could come up with is that it’s not an MLM because you can’t buy yourself a ranking by purchasing a ton of product.

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