Almost all of us have faced this audacity. The same story, but with a different product. The latent promise of getting a lot of money without much effort; where else but multilevel? Although chaotic and already known to many, it remains an enigma of hope.
Surely the exhibitor wears an “expensive” watch, wears an “elegant suit” and during an emotional presentation looks him in the eye and says:
“Don’t be afraid of success.” Wouldn’t you like to achieve your financial freedom?
Naively you ask: But what do I have to do? He answers bluntly: Nothing, just make money!
The concept sounds great. How difficult can it be to invite friends and friends to overcome?
Wouldn’t you like to have a model where you literally achieve financial freedom for the rest of your life? Before answering, let us know the “modus operandi” of this almost-pyramid model.
A pyramid is illegal
A business model that defrauds is by nature illegal. A few decades ago, the government declared “pyramid” a prohibited business model. In a pyramid they simply recruit people who put an amount of money with the promise that if they bring more people who do the same they will receive a much larger amount of money than what they started with. This model is illegal. To differentiate a pyramid from a multilevel, the government checks two things mainly:
- That there is a product or service involved
- That there is no registration fee
A multilevel is literally the same as a pyramid except that in a pyramid there is neither product nor service. The multilevel generally includes some product to avoid making that mistake and be cataloged as a pyramid. And of course, since they should not charge a registration fee, they do so by calling it “initial purchase” and thus achieve the same objective.
Wealth Thrills and Scare Tactics
The model is popular because it mostly promises quick and easy money. It promises happiness and stability quickly. It is generally associated with images of “wealth” and with people you can identify with. They are promoted as “super opportunities”. As if that were not enough, they add fear tactics to this. That is, if you don’t join you will face a lot of uncertainty and you will be doomed to fail.
The opportunity is almost always limited in time. They lead him to think that the future is uncertain if he does not join. These aggressive recruiting techniques are part of your plan and prevent you at all costs from analyzing things with logic rather than emotions.
Own your own business, Fake!
Multilevels promote the idea that membership is the same as having your own business. This in most cases is false. In essence, it is important to emphasize that a multilevel affiliation is rarely seen as your own business; neither for concept, nor for taxes, nor for liberties, nor for anything. It’s more of a commission job!
An innovative and exemplary model, False!
Most of the multilvels promote the idea that the multilevel is an innovative sales model and that it is the commercial future of society. The concept of multilevel has existed for several decades (it is not something new or revolutionary) and as if that were not enough, it is a very inefficient system economically speaking. Distribution and sales are done on a personal level and neither the time nor the effort of the staff that generated the sales is counted. The infrastructure, the personnel, the meetings and meeting places, the snacks or food consumed in the processes, etc., etc. are used without direct compensation.
Delusions of greatness
All multilevel promise to be the best. They say they are companies with exorbitant growth. They are among the 5 most prominent companies in the world. They collaborate with NASA, with Microsoft, Walmart, and with people like Jeff Bezos, Warren Buffet, and Bill Gates. That’s what they say, but nobody knows. Nobody questions it. It becomes what we know as “a fallacy.” A statistic made with rumors. In short, the vast majority of multilevels try to portray themselves as industry giants without reliable statistics to back it up.
The vast majority of multilevel companies claim to have a unique product line. They are generally “miraculous” products that have achieved great results and that, according to them, the industries conspire to prevent them from coming to light. Many show testimonials of people who earn thousands of dollars in a few months, others have been cured of cancer, diabetes, or have lost a lot of weight thanks to these products. Many studies show that most of these products are not significantly or not at all different from other products on the market and at a lower cost.
Numbers don’t lie
Interestingly, the multilevel model seems feasible until you do the math. The “little piece of heaven” they promise is almost impossible to achieve. In most cases you are more likely to win at the casino roulette in the city where you live.
Simply getting levels below you is extremely difficult. 3 levels of 2 people are 14 people in total. 5 levels = 62. 10 levels =2046. 15 levels = 65,534. 20 levels = more than 2 million. That’s right, over two thousand people. Mission Impossible! An unlimited dealer network is unstable
Mathematically, a multilevel company is doomed to collapse if its sales come mostly from its affiliates. A business model where countless distributors are allowed is inherently unstable. This happens because in most multilevels, success can only come through recruiting or selling to unaffiliated people. Otherwise, as in most cases, the sales come from the affiliates themselves causing the capital to just circulate without attracting new capital. In many cases, the profits do not come from the sales of the products or services but from the constant recruitment.
Statistics and tragic facts
Do not believe lightly. Look at the statistics they report. 98% of all multilevel companies fail. More than 99.5% of all people who get into a multilevel lose money. In addition, they end up buying expensive products that are technically no better than what the market offers. The rate of members leaving or disassociating within one year on average is 70%.
More than the economic damages are the social ones
n addition to the economic damage, there are moral and social damages. Most new multilevel members begin their recruitment with their closest family and friends. They insist and insist until their friends and family agree to go to the exclusive meeting where the aforementioned business opportunity is discussed. They even join the multilevel just to do the favor, but without really wanting to be active members. That is, they pay to stop bothering them.
Great opportunities never knock on your door by accident.
In the business world, it’s commonly said that if an opportunity sounds too good to be true, it probably isn’t. Worse still if they have to recruit him and look for him to integrate. With this we have reached the end of the analysis. Please I ask you, do not sacrifice the messenger. I only present real statistics. Acts. We do not try in any way to hurt the sensitivity of anyone. If for any reason the above sounds like personal experience, I assure you it is purely coincidental.