MLM = morons losing money

[tw]

Originally Posted by BigV

Now, without the flowery language, are you interested in explaining your thoughts on services with respect to your earlier post?

Bee it as it may (the month that dandelions arrive), mrnoodle explained the same concept.

Yes, people make money. but they make it by selling the kit and training materials. in the long term, the amount of money you get from all the fabulously overpriced merch will start to add up, but only after you have a sufficient downline of misled people looking for a pot of gold. for anyone in amway to make money, there must be a substantial base of people who are not making money. those people on the lowest tier supply the funding for everything else.

The money comes not (so much) from the product as from the so many lower tiered who buy into the pyramid scheme. Only enough product is sold to give the scheme legitimacy. The investments clearly don't justify the profits generated by moving product. In short, these Amway schemes have no product (a product or service). One gets rich by promoting 'get rich quick' kits to many 'investors' who must take a loss on their investment.

Never enough money earned by the product line to justify that investment. Classic pyramid scheme. Sold only on what it can do for you and not what it provides to society. If society gets no benefit, then there is no product.

The investors don't even get franchise benefits other than to sell franchises to other 'investors'. Nobody concentrates on selling the products. There is no money in selling products. Selling the franchise - not the product - is where almost all money is made. Even with lots of franchises sold, the product from those franchises amounts to near zero profits.

Buy a Fiat. You will own product from the fastest growing car company in the world. Right. Where does he even promote the product? He does not. He promotes a scam that is really irrelevant to the product.

Carly Fiorina did same to promote the purchase of Compaq. She justified everything in terms of "HP and Compaq will be the biggest market in this business and second largest in that business". Does size (and the lie about 'economies of scale') mean stockholder value? Of course not. There was no product advantage to the HP merger with Compaq. All but the institutional investors (MBAs) understood that. Obvious because the deal provided no 'product'. Fiorina promoted a scam by selling something that provided no advantage to the HP product line nor provided HP customers with new or better products. Fiorina promoted the classic MBA scam using spread sheet spin. And that is also what the Amway, et al scheme is all about. Finance spin because there is no money to be earned on the product line.