Wednesday, August 16, 2017

MLM and the "You are just angry" line.

Today's blog post is synonymous with one of my earliest posts about projection. Projection is a defense mechanism designed to transfer your own emotions onto someone else. It is, logically speaking, one of the worst ways to "win" a debate, and is usually used as a last resort when the person has had all of their more meaningful points refuted. Instead of continuing to focus on the subject, they begin to attack the rival by suggesting the rival can't be logical, because they are being emotional, or more specifically, angry. The United States, in particular, loves to get emotional when debating, which makes things more interesting, but is not good from a scholarly perspective. We also like to argue, rather than debate, because we attach a part of ourselves to the subject we are talking about. We have gotten to a point, in the US, where the ego is so fragile, that any time we are "losing" a debate we have a visceral reaction and become antagonistic.

MLMers have frequently resorted to projection on other blogs, and have commonly referred to authors and other commentators as angry. They may say the author is angry because they failed at MLM, or they have a specific vendetta against a MLM, or even that it has something to do with their biology. These MLMer attacks are both silly and direct reflections of their specific mood. MLMers wouldn't be looking for anti-MLM blogs unless, they lost a prospect or their family and friends recommended reading it. This loss of a prospect and or the rejection of the "business" by a friend or family member can be extremely damaging to a MLMers ego. This in turn will lead to a rage and will result in lashing out over the internet. When MLMers lash out they lose focus and rationality, which leads to ludicrous comments, some of which reflect themselves. 

Unfortunately, as an anti-MLM blogger and regular commentator on other blogs, there becomes a harsh realization about the ability . MLMers are very similar to addicts of controlled substances, and they aren't going to be able receive help from anyone until they are ready to help themselves. The combination of a weakened ego, and clever psychological manipulation, makes logical discourse nearly impossible. The other harsh reality is, the people these MLMers attack and call names, are the people that try the hardest to show them the errors of their ways.

The best strategy, in my opinion, when a MLM adherent devolves to ad hominem attacks and deviates from the subject, then end the discussion and resume it no sooner than twenty-four hours later. They will need time to refocus and calm down, and it may be best to start the conversation with addressing the exaggeration of emotions and how that is inappropriate for dialogue and business. 

Friday, August 11, 2017

MLM and the "Mine is different" line.

Today's blog post is about the old, tired line, "Some MLMs are better than others", and the various derivatives of this phrase. The main idea behind this line is to discredit your opinion by suggesting what you experienced was a freak incident, or the experience was not typical and you should expect different results because their group is different. There are a couple of fundamental flaws with this, the main one being, they all started with the same premise. It is hard, or in this case impossible, for something to be significantly different if it has to abide by the same structure as the original, therefore if the original has an inherent problem, then you can expect those problems to exist in the subsidiary groups. Translation, if a MLM as a whole has a significant issue, then the groups operating underneath the MLM will have that same issue.

There are three main levels in which this phrase is used, from micro to macro. The lowest level phrase is, my team is different because, we have better mentors, make more millionaires, have been around longer, or some other variation. The middle level phrase is, my MLM is better because, we have better mentors, we have better compensation, we have a better product, we are "new school", or some other variation. Then the highest level phrase is, MLM is better than "traditional" businesses because, you need less capital to start, you don't need to come up with a product, you don't need to handle the legalese, and many more lines. All of this falls under the same premise, we are different, therefore give us a chance. However, they are not different, and there is a very basic reason for why these arguments fall flat.

The MLM concept is founded on the idea that you can generate revenue from spending money instead of making money. This is the root cause for problems in MLM, because the revenue is generated through dollars spent by people involved with the company and not people outside of the company. Therefore, it doesn't matter how you try to justify your MLM or your team as being different or better, because the differences are irrelevant due to that main concept being inherently flawed.

This fallacy is known as a straw man argument, because the people using the, "Mine is different" line aren't addressing the root cause for the failure. They instead, are focusing on the symptoms, which is a common misnomer. It is the same as someone trying to treat a fever with cold compresses when the person actually needs antibiotics due to a virus. If you are only addressing the symptom, then the virus will not be stopped.

Another example is, a person in a MLM may be trying to follow a "system", but they just can't seem to make it work.  They read all of the books, they show the plans, they attend all the seminars, they pay all of their dues, but it still doesn't work. A MLMer may say, "The person just needs to try harder, they need to read more, they need to learn more, they need to do more", which is a focus on the symptom instead of the virus. Instead, the MLMer should say, "This person is following the system and failing. We should take a look at the system and make sure it still works."

Monday, August 7, 2017

MLM and Appeal to Authority Fallacy

Today's blog post is similar to the post about checking sources, but is going to go over a couple of other authorities and how they are not reputable. Too often people are misled by people posing as authority figures, and with the proliferation of information on the internet, it is easier than ever to fall for an authority website that is actually propaganda. Whether you are trying to find the best make-up on the market, or looking to find details about particular cars, there are going to be misleading websites that will pose as objective, but are really just shills for a particular brand or company.

Appeal to Authority Fallacy: Using an authority as evidence in your argument when the authority is not really an authority on the facts relevant to the argument.  As the audience, allowing an irrelevant authority to add credibility to the claim being made.
A couple of examples of the appeal to authority fallacy from simple to more advanced:

1. A stock broker giving advice on real-estate. Even though the stock broker may be very good at investing money and understanding the market as a whole, that does not qualify them to give advice on real-estate. You wouldn't go to a hedge fund manager and ask about property values.

2. A commercial real-estate agent giving advice on residential real-estate. This one is a bit trickier, because the person is in real-estate, even though they aren't specialized in the type of real-estate you are asking about. They may even have a general idea, but they will often be very vague when it comes to investing. These two types of investments are very different and should be treated as such.

3. A residential real-estate investor in New York giving advice about real-estate in Kansas. Real-estate markets can vary largely depending on the location, and it would be wrong to assume that someone who does well in New York could have the same success in Kansas.

4. A television house-flipper giving advice about house flipping. This is possibly one of the hardest, because they are allegedly very successful at the very thing they are claiming to be experts at, but many of these successes are fictitious. It is important to separate fantasy from reality, especially when investing, and get a good understanding of what could go wrong. Nobody wants to see the house-flippers fail, except me because I'm a pessimist, and that is why you never see any bad deals on these television shows. Trust me, it isn't even close to as easy as they make it look, and these people are more so television personalities than house-flipping experts. They will also commonly sell their brand or identity to other groups that will use their likeness to run seminars.

Recently a MLM apologist was debating about the legality of MLM and why, "some are better than others", or why "MLM is legal, but there are a few bad apples". These typical blanket statements that are designed to be convincing don't actually hold any weight unless a person can make a specific example. It is as impactful as someone saying, "If you work really hard, then you could become a millionaire". While this is true, and technically more accurate than the previous blanket statements, it is just as possible to work really hard and never become a millionaire, and it doesn't tell you how working hard will make you a millionaire or if working hard is the same for everyone. Therefore, any authority used to verify an inherently weak statement, such as the three above, is probably going to be flawed.

This particular MLM apologist attempted to use a website named, "www.mlmlaw.com", which sounds extremely relevant to the topic of proving whether MLM is legal or not. The website uses a lot of mechanisms to prove authority, such as, a generic color scheme, a font that looks like something a court document would use, a bunch of legalese language, and a reference to themselves at the bottom as actual lawyers. Unfortunately, calling yourself "www.mlmlaw.com", and having law degrees, does not make you an expert on MLM and the FTC's rules. This is proven as they leave out key parts of running a legal MLM according to the FTC vs. Amway case of 1979 which specifically states that every MLM must have 70% of sales to retail customers and each distributor must have at least 10 retail customers. Both of these rules were conveniently left off the website, and the website attempted to use the famous method of obfuscating retail customers and distributors with the term "end consumer" which can also be referred to as a "end user". By creating this new term, it becomes impossible to verify whether sales are going to customers or distributors, and this completely violates the previous rules installed by the result of the Amway case in 1979. They also have pictures at the bottom showing they are members of the "Direct Sellers Association" (DSA), another propaganda group designed to lobby on behalf of MLMs and act as an authority while deregulating industries in which MLM products are sold, such as health supplements.

It isn't entirely the MLMer's fault, as these websites, and even law groups, can look like reputable places to gather information and claim a position on the topic. In fact, because the "industry" keeps growing, and more money is available because of the vast number of copycat schemes, the interest in becoming an authority becomes greater. There will be more authorities claiming to be "experts" on MLM, even though they haven't actually participated in one or have failed miserably (Kiyosaki, Maxwell, Dent et. al). They are leeching onto MLM because there is money to be made, and they will be anything you want them to be as long as you have money.

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Source: https://www.mlmlaw.com/law-library/guides-reference/multilevel-marketing-primer/

Source: https://www.logicallyfallacious.com/tools/lp/Bo/LogicalFallacies/21/Appeal-to-Authority

Wednesday, August 2, 2017

MLM and Fear Mongering

Today's blog post is about a particularly powerful psychological technique known as fear mongering. Fear mongering has become an epidemic in the United States and it is used in everything from news programs to selling drugs. Typically, people need to be pushed to action, and one of the most reliable techniques to push people is focused on their inherent survival programming. If people fear something is going to hurt them, then they are far more likely to make a change than if they were told the product or service could help them. Fear mongering comes at a heavy price and usually results in group separation, group tension, group distrust, and group unhappiness. While this technique can be used for good, it is typically seen as a devious manipulation technique to gain a means to an end.

Image result for Fear Mongering

Some of the most effective fear mongering comes from commercials trying to sell pharmaceuticals. I recently watched a commercial for "Jardiance", a type 2 diabetes medication, where a spokesperson and a small crew hit the streets to find people with this disease. Even though the situation was fictional, the effect made it seem as though these "regular people" had no idea how bad diabetes is and what it will do to their longevity. The spokesperson went through a series of loaded questions in an attempt to scare these people into focusing more on their health, and after they went through some fancy graphs (similar to "Rise of the Entrepreneur"), the people suddenly transformed and became more alert to their dire situation. After getting their attention with fear mongering, an anonymous narrator starts talking over the picture about all of the side effects, which were potentially worse than type 2 diabetes, only to be followed by every "regular person" agreeing they should take "Jardiance".

Here is the commercial:


There are two important parts to fear mongering in which you should focus.

1. They portray a situation as imminent doom in an effort to get a person to act quickly. People are naturally programmed to survive, and if they fear they are in trouble, then they will be much more likely to do something about it.

2. Fear mongering can lead to an inability to make clear judgments. After you have become afraid, a level of panic will set in and critical thought will dissipate because there isn't time to evaluate the situation. This allows the fear mongers to get away with anything, including putting a person in a worse predicament, even though they are pretending to be of service.

MLMs utilize fear mongering to manipulate their potential prospects and adherents. They take advantage of the vulnerable state in which their members are in, and they offer a remedy for their stress. Instead of MLMs offering a medication for diabetes, they offer an opportunity to fix money issues. They create a false situation in which MLM is the only option an MLMer has for survival, and without it, they may be "Stuck working for a boss", "Stuck trading hours for dollars", "Stuck with living paycheck to paycheck", or even "Stuck living an unfulfilled life". Only after they have created this false narrative will they possibly talk about the horrible statistics, but by then, the MLMers don't care or can't hear it.

Fear mongering is powerful enough to justify any narrative, and its rate of success makes it an extremely attractive option. Here are some effective ways to stop fear mongering from manipulating you.

1. Don't make a hasty decision based on the potential of future harm. It is okay to take a moment and do some research to find out more facts. This is the information age, and we have access to more information, faster, than ever before. Take advantage of this feature.

2. Ask yourself if the remedy is worth the cost? In the case of the diabetes medication, it is important to seek professional help rather than a paid commercial for answers, and in the case of MLM, it is important to look at the statistics for success, the harm it may cause others, and whether it is something feasible to do.

3. Ask if the problem is really as bad as they make it sound. Does it need to be addressed immediately, or can it be something that can be fixed over an extended period of time? One would argue, especially if you are young, money problems are a marathon not a sprint. It is important to understand how to grow your net worth and to set appropriate goals along a certain time line. Simply saying, "I want to retire in 2-5 years" is not an acceptable goal (assuming you aren't 63 years old with a large net worth).

4. Arguably the most important thing to think about. Does the person that is telling me this terrible news gain anything? You'd be surprised how often the answer is yes, and you would also be surprised at how often their gains are at your expense.


Friday, July 21, 2017

Fun Post Friday! #2

I haven't done a post like this in a while, but with all of the craziness in the world, it was time to look at something funny. Apparently, Sweden is going to extraordinary measures to deal with their immigration problems (Muslim refugees), and are ready to send in the clowns! The organization is called "Clowns Without Borders" (CWB), and it is a real organization. They have been doing this since 1996, and are about to spend another 25 million kronor to help refugee children get a monthly smile! According to Ayatollah Khomeini (former supreme leader of Iran) this is how he feels about fun and laughter, “Allah,” declared Khomeini, “did not create man so that he could have fun. The aim of creation was for mankind to be put to the test through hardship and prayer. An Islamic regime must be serious in every field. There are no jokes in Islam. There is no humor in Islam. There is no fun in Islam. There can be no fun and joy in whatever is serious.” I'm going out on a limb here and say clowns aren't a big part of Islam.




Alright, enough clowning around with Sweden, MLMs are still around, and they are running very profitable circuses they call "functions". Let's break down these "functions", "seminars", "gatherings", and "meetings" for what they really are, glorified circus acts that are bringing in big dollars based on entertaining a vulnerable and captive audience.

1. Circuses and "Functions" are entertainment exhibitions - They both have a series of acts that bring laughter and escapism from the daily routine. They don't offer anything in the form of a solution for a brighter future. They both have loud music, dynamic lighting, and large energy.

2. Circuses and "Functions" are illusions - They both have magic acts, but circuses, unlike "functions", tell you in advance that they are trying to deceive you. The circus will have a magician come out and perform a series of tricks, while a diamond, or other high ranking status symbol, will lie to MLMers about a lifestyle they will never achieve as they extract dollars through routine purchases of tools and unsaleable products.

3. Circuses and "Functions" are superficial - There is no depth to their shows, and after leaving, you are not a better person. Instead of watching slapstick comedy from clowns, you are watching an elementary level public speaker tell jokes about "J-O-B's" and "Firing Bosses". Instead of watching animal acts, you are watching videos of high ranking members and their proverbial cages. Instead of watching a highly dangerous act, such as sword swallowing or the human cannonball, you are watching an 80 year evangelical preacher fly around on stage and acting crazed.

Image result for Clown in suit

High ranking MLMers may look, dress, and sound differently from clowns, but the message is still the same. Give them some money and get distracted for a brief period of time. Turn off your brain, and remove yourself from the world. Live in the present moment and forget responsibility.

Clowns being sent to help Muslim refugees is as logical as MLMers giving financial advice. MLMers don't know anything about running a business, they don't know anything about taxes, they don't know anything about saving money for the future, they don't know anything about investing. You wouldn't trust a clown to give you life lessons, therefore don't trust a MLMer with your financial future.

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Source: 
http://dailywesterner.com/news/2017-07-20/sweden-deals-with-muslim-integration-by-sending-in-the-clowns/

Monday, July 17, 2017

MLM and Televangelism/John C. Maxwell

Today's blog post is about televangelism and how it has similar features to MLMs and their major functions. Televangelism first started with radio broadcasts in the 1920's, and the first major radio evangelist was S. Parkes Cadman (Samuel Parkes Cadman). With the advent of the radio, evangelism shifted from preachers traveling the country during The Great Depression by foot to broadcasting their message through short wave radio. S. Parkes Cadman was the first major radio evangelist, and his message was spread to over 5 million people through his Sunday afternoon program. In the 1950's radio evangelism was starting to shift to the popularly recognized televangelism of today, and by the 1980's Oral Roberts had a program that reached "80% of the potential television audience". This became the most effective way to spread the word of god, and it also became a great way to make money.

Today, televangelism is still effective in making large sums of money as preachers from megachurches, such as The Crystal Cathedral in Garden Grove California, can spread their word to millions of viewers. The Crystal Cathedral has been running their own television program, "The Hour of Power" since 1970, and even though it has suffered some recent complications with bankruptcy, it still exists today.

Image result for The Crystal Cathedral

One of the most prolific preachers from The Crystal Cathedral is "Dr." John C. Maxwell. John Maxwell has been involved in preaching and televangelism since the early 1970's after receiving a master's in divinity and a doctorate in ministry, and no those are not degrees from Hogwarts. His original mentor, Robert Schuller, was the founder of The Chrystal Cathedral, and John Maxwell has done sermons for his "Hour of Power" television show.

Image result for John Maxwell

John Maxwell has had a long career involving his "teachings" and is a self-regarded "Leadership Expert". He has written over ninety books, and believes there is still more leadership to be taught and written. He is also an avid MLM proponent and has done many speaking engagements at MLM functions. Although he has "retired" from the evangelism, he is still regularly hawking his services as an expert in the field of MLM training, and continues to overlap the word of god with MLM.

It is my opinion that John Maxwell is a fraud, and he uses his religious training to help perpetuate his criminal enterprise. He is another "Prosperity messiah", similar to Eric Worre, and he has made a career, and many millions of dollars, selling himself as the answer to people's problems. He, much like Worre, is a narcissist of the highest degree. He has no training in business and entrepreneurship, therefore his ability to teach in anything related to business, including MLM, is not going to be trustworthy. He has been studied by other biblical scholars, and they have found errors in his understanding and his interpretation of the scriptures. He has combined two criminal "businesses" into a major profit machine, and at the ripe age of 70, he isn't done yet.

MLM and televangelism share the same recipe for deception. They utilize the thought stopping rhetoric of religion to promote fake and or criminal teachings in an effort to extract dollars from people's wallets. John Maxwell was trained by Robert Schuller, a founder of the major televangelism movement, and has found his own technique for deceiving many millions of people. He, much like Schuller, has taken the word of god as a means to an end for profit. Instead of performing at The Crystal Cathedral, you may see John Maxwell at the Las Vegas Convention Center, and instead of promoting scripture, he may be promoting leadership and the "MLM gospel".

Below is John Oliver's special on televangelists.


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Source: https://en.wikipedia.org/wiki/John_C._Maxwell

Source: https://en.wikipedia.org/wiki/Televangelism

Source: https://en.wikipedia.org/wiki/Hour_of_Power

Source: http://www.johnmaxwell.com/

Source: http://midwestoutreach.org/2016/04/10/some-concerns-about-john-c-maxwell/

Source: http://theaquilareport.com/ten-reasons-john-maxwell-is-wrong/

Thursday, July 13, 2017

MLM and "Rise of the Entrepreneur" Part 1

***DISCLAIMER*** THIS POST IS LONG ***DISCLAIMER***

Today's blog post is a synopsis of, "Rise of the Entrepreneur", and how it is supposed to be a "documentary style film" for "Network Marketing". The movie was made by "Network Marketing Pro", Eric Worre, and it is his attempt to bring understanding to the "business" of "Network Marketing". The film is a cleverly designed propaganda piece that is designed to deceive and mislead potential future customers for Eric Worre's "Go  Pro" programs, and it is an incredibly spun view of "Network Marketing" as a whole.



 0:00-2:15

The beginning of the film starts with a call to action. The world is going fast and it is harder than ever to make a living. We need an answer, because everyone is suffering and there is nothing we can do about it. Robert Kiyosaki says, "Getting a paycheck is an industrial age idea", which makes no sense. Kiyosaki is notorious for saying weird, misleading, or fabricated statements and trying to pass it off as knowledge. This is a perfect example, because anyone that gets paid legally in MLM, and any other profession, will receive a paycheck. Kiyosaki will make more appearances in the film, and it should be noted that every time he says something, there will be something wrong.


2:16-3:42

This part of the film talks about his thesis. He also does his first list, which is one of Eric's favorite things, and he talks about his "Three Important Questions".

1. What's really going on in our working world today?

2. Is it better to be an entrepreneur or to work for someone else?

3. How can you be an entrepreneur without taking massive risk?

He also says there will be new information that nobody has ever heard before.


5:45-6:34

The interviews begin and there are a lot of random people saying some stuff that means nothing, but then...

Robert Kiyosaki is back, and this time he has brought interactive charts to the conversation. He starts by talking about people in the middle class and how their wages are going down. While this may be accurate, it has no correlation with "Network Marketing", and this is a common straw man tactic. He wants you to look at an unrelated problem. Then he gets back to being bizarre by suggesting that poverty is ending, but the "working poor" is going up. Not only does that not make sense, but his last graph suggested that poverty is rising because the middle class is being wiped out which is another way of saying the rich are getting richer! Robert Kiyosaki, the man, the myth, the wordsmith legend!

7:00-8:00

More random interviews, and then...

Robert Kiyosaki is back with MORE graphs! He starts by talking about how awful student loan debt is in comparison to credit card debt because it can't be forgiven. He even has a big smile when he mentions you can go bankrupt and "all is forgiven" if it is credit debt. Not true! You can lose your assets, such as your house and your car, and you may not be able to get a loan or gainful employment. Then he talks about the average wages of college students going down. Well, we currently have more people attending and graduating from college than ever before, so, the law of supply and demand comes into effect. If there were only 10 college graduates in a field one year, and then 100 college graduates the next year, then the demand for those persons will shrink unless more jobs are available. The issue is not college, but the inability to create new jobs. He missed the point entirely, and it has nothing to do with "Network Marketing".

8:00 - 9:00

A guy comes out talking about debt, and his numbers are...CRAZY! I don't want to harp too much on this because there is more important bad information (never thought I would say that), but this guy is the epitome of bad data. A quick Google search will reveal the true debt figures.

9:00 - 11:45

Worre emphasizes how much sorrow everyone has, and how terrible the world is because we live in a rigged system. He has more weird interviews to hype the sadness, and then he has a guy come on and say, "The economy is great!". This will be a recurring trend where MLMers play both sides of the fence. On the one hand, the world is rigged, life is hard, there is too much debt, not enough jobs, but the economy is wonderful. Does this make sense?

12:00 - 13:00

Worre talks about the stock market wildly, vaguely and incorrectly, and should be ignored as this has nothing to do with his "expertise". It is far more complicated than he made it sound, and your money doesn't just go to some random person when you invest it. This part should have been left on the cutting room floor.

13:00 - 13:50

Worre talks about what classifies as middle and upper class incomes. These numbers are important because they show the percentages of people that fall into these categories across every profession. You are much more likely to fall into one of these classes "working for someone else", than you ever will be working in "Network Marketing" according to the MLM's own published income disclosures.


13:50 - 15:34

Worre talks to a bunch of people that say being an entrepreneur is good and being an employee is bad. All of them speak with hyperbole when talking about employees and none of them acknowledge the fact that employees were directly responsible for their dreams. They act as though they accomplished everything on their own and employees are "modern day slaves". This is completely inaccurate, and their opinion of employees would leave one to believe their workers may need to find new employers.

15:34 - 17:28

Worre talks to more people, and this time they are saying starting a business is expensive, time consuming, and has a high risk of failure. Nothing really special there.

17:28 - 17:50

Guess who is back...KIYOSAKI!

Right on cue, he undermines the whole movie thus far by saying employees with college degrees are extremely vital to running a business. He even says, "A business is a team sport", and yet the whole movie suggests being an employee is bad and getting a college degree is bad. He is quickly becoming my favorite!

17:50 - 19:30

Worre et al. talk more about how expensive, time consuming, and education intensive it is being an entrepreneur. Worre begins to hint at the subject of the movie, because at this point, they haven't revealed it. Up to this point, they have only used the term "entrepreneur", but have yet to talk about "Network Marketing". There aren't many successful films that can go nearly 20 minutes without bringing up the subject.

19:30 - 20:30

Worre finally brings up "Network Marketing". He also uses the term "Direct Selling", partially correctly, suggesting it means products move from "Manufacturer to Consumer". "Direct Selling" can also be purchasing a product on eBay from another user, or the original method, a door-to-door salesperson coming to your house with a product. He also mentions "Multi-level Marketing", but acts as though that term doesn't fully encompass the "business", because his brand uses the term "Network Marketing". This is where he begins his brand enforcement, and starts working the term "Network Marketing" into the viewers vocabulary.

20:30 - 20:47

Once again...the one, the only...Robert Kiyosaki is back with another gem!

First, he mentions his relationship with Trump, then he holds up his book. He actually plugs himself while helping to plug Worre! Then he says people come out of school looking for a paycheck is, "terrible!". Robert, why else would people go to school? Oh, I completely forgot, Robert's logic is otherworldly.

20:47 - 21:30

Random people are suggesting "Network Marketing" is the best. One lady uses the celebrity fallacy suggesting authors and billionaires being associated with "Network Marketing" adds credibility. The two do not have a direct correlation as they did not become billionaires and authors because of "Network Marketing".

21:30 - 21:38

The excitement continues with...you guessed it, Robert Kiyosaki!

Unfortunately, he was too short this time, but he says go to school for a paycheck and do "Network Marketing" to be rich. I suppose nobody informed Robert that he failed at Amway.

21:38 - 22:56

Worre talks about marketing budgets and his numbers are WAY off. The average marketing budget should be around 10% of sales, but he seems to think it is 50%. He also suggests that "Network Marketing" is "completely efficient". This is the boldest lie. "Network Marketing" is the least efficient way to sell a product or service and it is reflected in the price. There has to be steep commissions paid to each tier causing the product price to rise. "Network Marketing" has never been price competitive in the market place.

22:56 - 24:29

This section is critical because there are a lot of problems describing "Network Marketing". One guy suggests big box retailers hire incompetent employees that don't know the products. This may be true, but at least they go through formal training. Whereas many "Network Marketers" do not go through formal training, and are often misrepresenting the products. TINA.org showed 97% of all MLMs in the DSA had false health claims and other misinformation when it came to the products.

Another person suggests "Network Marketing" is better than advertising because advertising has hype. Apparently, according to him, "Network Marketing" doesn't use hype? I don't think this guy is aware of the subject.

The third person is the worst. He actually describes how "Network Marketing" is a pyramid. He gives an example of how he wants to sell a million dollars worth of product. In a "typical sales company", he would hire 100 salespersons and have a quota of $10,000 in sales. Then he says, in "Network Marketing", he would worry about 10,000 "happy raving fans" "selling $100.00 worth of product". This is it folks, the smoking gun. If you want to make a million dollars in "Network Marketing" you better build a downline of 10,000 "fans", because the focus is not on selling products to customers. Those 10,000 "fans" selling $100.00 worth of product aren't going to be making any real income.

We will continue with part 2 soon!