Yo guys and gals... I summarized this whole thing for u all out there, surely its gona benefit u...

For those who might be approached by MLMers, here's an advice which much provide you enough infomation to reject them, especially if they happen to be your close friends or family, such that you do not strain your relationship.

MLM's economic scorecard is characterized by massive failure rates and financial losses for millions of people. Its structure in which positions on an endless sales chain are purchasedby selling or buying goods is mathematically unsustainable, and its system of allowing unlimited numbers of distributors in any market area is inherently unstavle. MLM's espoused core business - personal retailing - is contrary to trends in communication technology, cost effective distribution, and consumer buying preferences. The retailing activity is, in reality, only a pretext for the actual core business, which is enrolling investors in pyramid organizations that promise exponential income growth.

The growth of MLM is the result of deceptive marketing that plays upon treasured cultural beliefs, social and personal needs, and some economic trends, rather than its ability to meet any consumer needs. The deceptive marketing is nurtured by a general lack of professional evaluation or investigation by reputable business media.

Lie #1 : MLM offers better opportunities than all other conventional business and professional models for making large amounts of money.

Truth: For almost everyone who invests, MLM turns out to be a losing financial proposition. Fewer than 1% of all MLM distributors ever earn a profit and those earning a sustainable living at this business are a much smaller percentage still.

Extraordinary sales and marketing obstacles account for much of this failure, but even if the business were more feasible, sheer mathematics would severely limit the opportunity. the MLM business structure can support only a small number of financial winners. If a 1,000 person downline is needed to earn a sustainable income, those 1,000 will need one million more to duplicate the success. How many people can realistically be enrolled? Much of what appears as growth is in fact only the continuous churning of new enrollees. The money for the rare winners comes from the constant enrollment of armies of losers. With no limits on numbers of distributors in an area and no evaluation of market potential, the system is also inherently unstable.

Lie #2: Network marketing is the most popular and effective new way to bring products to market. Consumers like to buy products on a one - to - one basis in the MLM model.

Truth: Personal retailing -- including nearly all forms of door to door selling -- is a thing of the past, not the wave of the future. Retailing directly to friends on a one to one basis requires people to drastically change their buying habits. They must restrict their choices, often pay more for goods, buy conveniently, and engage in potentially awkward business relationships with close friends and relatives. In reality, MLM depends on reselling the opportunity to sign up more distributors.

Lie #3:Eventually all products will be sold by MLM. Retail stores, shopping malls, catalogs and most forms of advertising will soon be rendered obsolete by MLM.

Truth: Fewer than 1% of all retail sales are made through MLM, and much of this is consists of purchases by hopeful new distributors who are actually paying the price of admission to a business they will soon abandon. MLM is not replacing existing forms of marketing. It does not legitimately compete with other marketing appraoches at all. Rather, MLM represents a new investment scheme couched in the language of marketing. Its real products are distributionships that are sold through misrepresentation and exaggerated promises of income. People are buying products in order to secure positions on the sales pryamid. The possibility is always held out that you may become rich if not from your own efforts then from some unknown person("the big fish") who might join your "Downline."

MLM's growth does not reflect its value to the economy, customers, or distributors, but the high levels of economic fear, insecurity, wishes for quick and easy wealth. The market dynamics are similar to those of legalized gambling, but the percentage of winners is much smaller.

Lie #4:MLM is a new wayof life that offers happiness and fulfillment. It provides a way to attain all the good things in life.

Truth: The most prominent motivational themes of the MLM industry, as shown in industry literature and presented at recruitment meetings, constitute the crassest form of materialism. Fortune 100 companies would blush at the excess of promises of wealth, luxury, and personal fulfilment put forth by MLM solicitors. These appeals actually conflicts with most people's true desire for meaningful and fulfilling work at something in which they have special talent or interest.

Lie #5: MLM is a spiritual movement.

Truth: The use of spiritual concepts like prosperity consciousness and creative visualization to promote MLM enrollment, the use of words like "communion" to describe a sales organization, and claims that MLM fulfills Christian principles or Scriptural prophecies are great distortions of these spritual practices. Those who focus their hopes and dreams upon wealth as the answer to their prayers lose sight of genuine spirituality as taught by religions. The misuse of these spiritual principles should be a signal but that the investment opportunity is deceptive. When a product is wrapped in the flag or in religion, buyer beware! The "community" and "support" offered by MLM organizations to new recruits is based entirely upon their purchases. If the purchases and enrollment decline, so does the "communion".

Lie #6: Success in MLM is easy. Friends and relatives are the natural prospects. Those who love and support you will become you life-time customers.

Truth: The commercialization of family and friendship and the use of "warm leads" advocated in MLM marketing programs are a destructive element in the community and very unhealthy for individuals involved. People do not appreciate being pressured by friends and relatives to buy products. Trying to capitalizing upon personal relationships to build a business to destroy one's social foundation.

Lie #7: You can do MLM in your spare time. As a business, it offers the greatest flexibility and personal freedom of time. A few hours a week can earn a significant supplemental income and may grow to a large income, making other work unnecessary.

Truth : Making money in MLM requires extraordinary time commitment as well as considerable personal skill and persistence. Beyond the sheer hard work and talent required, the business model inherently consumes more areas of one's life and great segments of time than most occupations. In MLM, everyone is a prospect. Every waking moment is a potential time for marketing. There are no off limit places, people, or times for selling. Consequently, there is no free space or free time once a person enrolls in MLM system. While claiming to offer independence, the system comes to dominate people's entire life and requires rigid conformity to the program. This is why so many people who become deeply involved end up needing and relying upon MLM desperately. They alienate or abandon other sustaining relationships.

To be continue...