The Frugal Nexus concludes LIFE “is one of the worst business decisions you could ever make.”
A trackback was posted on my site the other day, pointing to a review of the LIFE business written by The Frugal Nexus. It so happens that the author, who writes about frugality, anti-consumerism, and authenticity, was recently prospected by a LIFE member in Canada.
His review of the LIFE business gets straight to the point and is highly recommended reading. The Frugal Nexus (TFN) takes a rational and analytical look at the business from several angles and concludes that getting involved with LIFE “is one of the worst business decisions you could ever make.” He compares the 40% turnover rate with that of the 26% turnover rate in the call-center industry. The 40% figure is actually out-of-date, as there is a new IDS (our detailed analysis is coming soon) that shows that 51% of LIFE members do not renew after a year!
He also addresses the tactic used by LIFE to create honey-pot websites that are designed to persuade people that LIFE is really a good business and “how Orrin Woodward is the best thing to ever grace the earth.” This is something that I’ve written extensively in the past, and it’s good that others can see the true motive behind these defensive click-bait websites. I especially liked TFN’s rebuttal to the tired MLM argument that the corporate world is a pyramid.
Their main point was “every organization is a pyramid” is true, but in most conventional pyramids you get “fairly” (at least minimum wage) compensated for your time and you often would not have to spend your time recruiting others for no pay. I think they are mistaking hierarchy for pyramids, hierarchy are a feature of human society, in all facets of life. However the difference between a normal pyramid in Acme corp, verses a MLM pyramid is that a MLM pyramid has to grow necessarily, even exponentially for any of the lower echelons to expect payment. So while a pyramid is a hierarchy, not all hierarchies are pyramids in the MLM sense.
I want to publicly thank The Frugal Nexus for taking the time to write this review of the LIFE business. Prospects need to see both sides of the story and hard facts and analysis of the numbers that LIFE provides in its IDS. The LIFE member that prospected TFN has been in the business for two years but still has a full-time job. I can only imagine how much money this person has “invested” in the LIFE business over that time period. All those books, CDs, weekly seminar tickets, and major function tickets — how could the LIFE member have invested that money and time differently to better his life today? The Frugal Nexus has a similar wish for the LIFE member:
I hope the LIFE rep eventfully ‘wakes up’ from the ‘financial matrix’ he created for himself. LIFE demands that you double down to try to recoup anything, like a problem gambler taking another spin, forever chasing it.