This question will always have a different answer depending on whom you ask. If you ask those who are on the inside, the answer will certainly be a resounding NO. However, those who have been in, and have now come out, will tend to agree with the “scam” argument.
This is a debate that has been going on for the last 30 years or so. From the creation of MLM giants like Amway, Herbal life, and Avon, controversy has never ceased.
In my opinion, the business model in itself is not as bad as it may appear. The problem lies with the incentives and the underlining greed factor that causes people to ignore the “ethics” of the means, and focus solely on the result.
It is sad to observe that the majority of MLM companies that exist out there are more about selling the business model than they are about their goods and services. When the business model is used to move products and services, it is hard to talk of a scam. If on the other hand, these companies primarily market their business model as the actual product, it is only a matter of time before they end up being labelled as scams….and rightfully so, I might add.
Before Amway became Quixtar, I was a distributor for about 2 years. I never missed a meeting or a major business function. I presented the plan faithfully to dozens of people per week as recommended. I bought the tapes, and read the books to condition my mind. I made the necessary sacrifices; I was fired up and motivated by the prospect of achieving “my dream”. So, having being on the inside, do I concur that multilevel marketing is a scam? Yes and No.
Yes, because my leaders (not all are alike), were more focused on me buying their tapes and books, and bringing in more people to do likewise than they were about me selling products. I was under the impression that the tape and book business was a much more profitable venture than the actual products and services. This is definitely an aspect that threw me off, and left nothing but a bitter taste.
The personal development aspects of MLM such team building, leadership, public speaking and general people skills were excellent, and second to none. My exposure to these different aspects during my time as a distributor contributed greatly to the person that I am today.
So, do I have regrets? Well, not really. I did not experience the residual and ever increasing cash flow as illustrated in the literature and the presentations. I ended up with much more…but this is also due to the attitude that I chose to adopt. I decided to extract and implement all that I thought was beneficial to me, and simply discarded the rest.
The word “Scam” in anything that has to do with making money online is a very scary word. It is not something to be used lightly. It can ruin your reputation and shut you down in days…if not hours! Some have used it in retaliation to unfair treatment or sometimes out of sheer jealousy. So, before I label something as such, I have found that the most respectable thing to do is to take the time to study and investigate thoroughly. So, depending on your attitude, and the people you deal with, MLM can be just as much a scam as it could be an opportunity for personal growth. You decide!
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