| Typical Multi-Level Marketing | Consumer Direct Marketing |
|---|---|
| MLMs almost always tout a "ground floor opportunity" to potential business builders, implying major advantages if you hurry and get in on the "ground floor". | Rather than deteriorating over time, a viable business opportunity gets better every year. As products improve through more scientific discoveries each year, it gets easier and easier to outdistance the competition. As sales aids improve and the company's reputation grows, it gets easier to build a substantial business faster than those who joined the year before. |
| MLMs often operate a "volume line" that a distributor can use to call the company before midnight on the last day of the month to determine how close the distributor is to reaching a particular "volume" qualification. The distributor can then purchase the difference to qualify for specific bonuses or discounts. This incentivizes a distributor to make an even greater "investment" in inventory. | A good company has no volume lines. Customers buy only what they need each month. There is absolutely no incentive and no requirement to make large purchases at the end of the month to qualify for some volume level. |
| The attrition rate of customers and distributors is extremely high in most multi-level companies. | The retention rate is extremely high. In some companies, ninety-six percent all of customers who ordered last month will order again next month. |
| Many MLMs suggest that distributors quit their full-time jobs and work full-time in their multilevel business. MLM companies also often suggest that people "fake it till they make it" by appearing to be wealthy by drive fancy cars; purchasing expensive homes; buying motor homes, boats, and motorcycles; and by wearing fur coats, diamond rings, and expensive jewelry. This activity has driven thousands of multilevel distributors into bankruptcy, destroyed lives, and even broken homes--all while giving a distorted impression of the company's actual success. | A good company will advocate that marketers keep their full-time job, become the best employee that they can be for their current employer, and use their additional income to add to their full-time income. Only when marketers are making several times their current salary should they consider leaving. A good company should advocate that people stay out of debt, pay off their homes and cars, and live within their means. |
| Most MLMs do not have product return policies unless the distributor cancels their distributorship. Only then will a typical multilevel marketing company honor the Direct Selling Association's code of ethics, which requires such companies to purchase back 90% of a distributor's resalable products. | A good company gives an absolute, no-questions asked, 100% customer satisfaction guarantee. They will give your money back even if you have used up all of a product and decided you didn't like it after you used it. Grocery stores or drugstores don't offer such a guarantee. And most MLM companies certainly don't offer such a guarantee. |
- Regardless of which type of business interests you, don't fall for the hype.
- Spend a lot of time doing your research before you spend a dime.
- If you have any questions, Please feel free to contact us and ask.