This system works great for the few people at the top of the pyramid who get into an MLM early before market saturation occurs, but by the time most people have heard of the company and are being recruited, they will end up firmly at the bottom of the pyramid with very few people interested in joining them or purchasing their wares. What they don’t tell you is that you can only repeat that cycle 15 times before you’ve exceeded the population of the entire planet. You recruit five new people and each of those recruits find five more people and so on and so on, giving the individual downlines and the company as a whole the triangle shape that has led to accusations of MLMs being pyramid schemes. selling products, but what they all have in common is that the only way to make any significant amount of money as a distributor is to recruit more distributors and grow a large “downline” of people from whose sales you then earn commission. The companies vary in the degree to which they emphasize recruitment of new distributors vs. Before I knew much about MLMs, I’d attended several parties over the years and been invited to plenty more. You’ve probably been invited to one of these parties. A lot of consultants have parties to share and sell their products, asking friends and family to “host” the parties, in person or virtually, in return for freebies or discounts. MLMs rely on independent distributors, consultants, representatives, or presenters (each company has their preferred term) to sell products rather than selling directly to the consumer via website or storefront. Some of the oldest like Avon, Mary Kay, Nu Skin, Amway, Tupperware, and yes, Herbalife, have been around for decades. Even if you’re unfamiliar with MLMs as a business strategy, I’m confident you’ve heard of one of the companies. Let’s start with the unethical business practices.Įvery single one of these “nutrition clubs” sells the exact same products because all the flavor powders and concentrates used in the drinks come from the same multi-level marketing (MLM) company, Herbalife Nutrition. It’s healthy! Who wouldn’t want businesses that promote healthy living in their community? Anyone who has qualms about unethical business practices and cares about what they ingest, that’s who. Okay, so what? It’s caffeine, vitamins, collagen, and stuff. They market to college students, moms, teachers, healthcare workers, and anyone who needs energy and “guilt-free” sweet treats. They all sell the exact same products - brightly colored loaded teas, meal replacement shakes, “donut hole shots,” beauty drinks, aloes, and other products. Two new ones opened as I was working on this piece. I’ve counted no less than twelve different businesses called “ Nutrition” that have opened in our area since November of 2019. You may have noticed a proliferation of nutrition clubs opening in the Auburn/Opelika area in the last year. The views and opinions expressed in this blog are those of the author and do not reflect the official policy or position of Auburn-Opelika Moms.Ĭopyright Disclaimer under section 107 of the Copyright Act of 1976, allowance is made for “fair use” for purposes such as criticism, comment, news reporting, teaching, scholarship, education and research.įair use is a use permitted by copyright statute that might otherwise be infringing.
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