MLM – a dangerous marketing strategy

[knowngunman]

Disclaimer: Please don't invest in MLM Systems, you won't get your invested money back. In the following topic is explained why:

Sorry for bringing this thread up again. This reminds me of MMM some years ago in Nigeria but most of us have learned the lesson after it crashed. MLM makes people believe that they can get rich by joining them but in reality, very few people make a significant income from MLMs. However, it's also worth noting that not all MLMs are the same. There are some that have more ethical practices than others and there are even some that are legitimate businesses. It's therefore, advice able to do your own research before getting involved with any MLM service. As usual, I request to make a translation of this thread on Nigerian local board using pidgin language. The rate at which MLM (ponzi to be precise) is growing in Nigeria is alarming and it's our collective responsibility to create awareness so people can stay away from this platforms or whatever they are called.

[Mia Chloe]

Well written OP, Not forgetting MLM is also been used in the ICO market enabling shitprojects raise huge funds even more than the somehow legit projects in the aim of deceiving the general public.
Projects using MLM to hype their ICO are usually shitcoins with nothing to offer except tokens been tradable on few worthless exchange in future. I discourage investing in projects that uses MLM.
No doubt MLM benefits only the early adopters and they need those I call "new fools" to keep the project they're using MLM to promote alive.

Do you mean referral links? It's similar when you compare that both are free advertising by the existing user and therefore he is interested in geting referrals. MLM is much bigger because the referrals of your referrals etc. still get rewards.
But in general agree, many ICOs use it and it's always recommended to keept that in mind when you get over a referral link that the person posting it is interested in getting you in. Don't trust, verify  
Good point.

@1miau I intend on making a translation of this post in pigin in my local board so I am officially asking to reserve a slot.

Translation is now ready in my local board.
Here is the link ; MLM na dangerous marketing strategy

[1miau]

Translation is now ready in my local board.
Here is the link ; MLM na dangerous marketing strategy

Well done, it's approved already and I've added your translation to my list:

Language	translated by	Title
_____________	_______________	__________________________________________________________
Nigeria (Naija)	Mia Chloe	MLM na dangerous marketing strategy

Once again, it's nice too have such a topic like warning about dangers of MLM available for our Nigerian community.
My topic is quite "old" already and MLM, like Bitcoinnect for example, isn't very popular anymore but it's always helpful to know about MLM and why it's a dangerous marketing strategy.  

[Publictalk792]

Dear 1miau sir,

I want to translate this topic in my Local Language and want to post it in my local community thread. I seem this topic helpful for my community so I decided to translate this topic. I shall be happy if you will allow me to translate your topic and reserve my seat for this purpose. If you will allow me to I will start my work. I will wait for your kind reply.

Thanks
Publictalk

[1miau]

Dear 1miau sir,

I want to translate this topic in my Local Language and want to post it in my local community thread. I seem this topic helpful for my community so I decided to translate this topic. I shall be happy if you will allow me to translate your topic and reserve my seat for this purpose. If you will allow me to I will start my work. I will wait for your kind reply.

Thanks
Publictalk

Hello, dear Publictalk792 

Unfortunately, my topic "MLM – a dangerous marketing strategy" is currently not available for translation:

Reserving new translations is currently not available.

If you want to make a beneficial translation, I'm sure you'll find more interesting topics for translation which can be helpful for your local board like "[TIPS] to avoid pyramid quotes (for Newbies)" or similar.
As far as I know, LoyceV also has a great list here, where you can select from: [GUIDES] on Bitcointalk. Index thread (until there is a dedicated subforum?)

[PytagoraZ]

Disclaimer: Please don't invest in MLM Systems, you won't get your invested money back. In the following topic is explained why:

This is a wrong interpretation. MLM is a good marketing concept. What is wrong is the ponzi scheme system. I think MLM and ponzi scheme are different things. This is a wrong interpretation

[Adiljutt156]

Hello @1miau   !

I am a part of The Alliance of Bitcointalk Translators (AOBT) gang.

I have translated your topic (MLM – a dangerous marketing strategy)  into my local language Urdu ( Pakistan board) and my translation has already been approved by Gazetabitcoin. Please add it in OP list.

Here is my translation link: ایم ایل ایم – ایک خطرناک مارکیٹنگ کی حکمت عم 

Thanks.

Merry Christmas 1miau stay happy and healthy in your life 

[1miau]

Disclaimer: Please don't invest in MLM Systems, you won't get your invested money back. In the following topic is explained why:

This is a wrong interpretation. MLM is a good marketing concept. What is wrong is the ponzi scheme system. I think MLM and ponzi scheme are different things. This is a wrong interpretation

It's not a wrong interpretation. MLM and Scam often goes hand in hand because it is so critical to gain new customers.

Hello @1miau   !

I am a part of The Alliance of Bitcointalk Translators (AOBT) gang.

I have translated your topic (MLM – a dangerous marketing strategy)  into my local language Urdu ( Pakistan board) and my translation has already been approved by Gazetabitcoin. Please add it in OP list.

Here is my translation link: ایم ایل ایم – ایک خطرناک مارکیٹنگ کی حکمت عم

Thanks.

Merry Christmas 1miau stay happy and healthy in your life 

Thanks a lot for your help, translation is added now in my list:

Language	translated by	Title
___________________________	_________________________	_______________________________________________________________________
Pakistan	Adiljutt156	ایم ایل ایم – ایک خطرناک مارکیٹنگ کی حکمت عم

[Porfirii]

Disclaimer: Please don't invest in MLM Systems, you won't get your invested money back. In the following topic is explained why:

This is a wrong interpretation. MLM is a good marketing concept. What is wrong is the ponzi scheme system. I think MLM and ponzi scheme are different things. This is a wrong interpretation

It's not a wrong interpretation. MLM and Scam often goes hand in hand because it is so critical to gain new customers.

In fact, you explain it well in your topic, when you say that MLM doesn't necessarily mean scam, but that often there are scams behind MLMs.

MLM does not necessarily mean that a project is a scam, but in most cases it is. This is mainly because (...).

Perhaps the disclaimer may seem too direct, but I think that it is justified in any case (for those who only read this part of the text, it is a good piece of advice) and especially when the thesis is developed below.

[KingsDen]

Disclaimer: Please don't invest in MLM Systems, you won't get your invested money back. In the following topic is explained why:

This is a wrong interpretation. MLM is a good marketing concept. What is wrong is the ponzi scheme system. I think MLM and ponzi scheme are different things. This is a wrong interpretation

It's not a wrong interpretation. MLM and Scam often goes hand in hand because it is so critical to gain new customers.

In MLM, the early birds occupy the juicy slots while having others join the pyramid to enrich them. Same is applicable in Ponzi scheme. The notable difference is that Ponzi scheme ends faster when there's no more inflow of income to sustain the system while MLM can go for so long.
If there are things I need to know in MLM that made it a saint over Ponzi scheme, please let me know.

[serjent05]

Disclaimer: Please don't invest in MLM Systems, you won't get your invested money back. In the following topic is explained why:

This is a wrong interpretation. MLM is a good marketing concept. What is wrong is the ponzi scheme system. I think MLM and ponzi scheme are different things. This is a wrong interpretation

It's not a wrong interpretation. MLM and Scam often goes hand in hand because it is so critical to gain new customers.

I agree with @PytagoraZ in terms of defining the thin wall between MLM and Ponzi Scheme, they are two different business model.  If we look on the difference of the two, the Ponzi Scheme relies solely on the entry of future members while Multi Level marketing earnings depend on the products sold personally and commission on the product sold by the recruited person or downline.  Ponzi Scheme is an illegal business model while MLM being product-focused make it a legal business.

Anyway, this is a good comparison between MLM and Ponzi Scheme, I believe it is better to hear or know it from someone who is really into the system: https://www.linkedin.com/pulse/ponzi-scheme-vs-network-marketing-whats-difference-tim-sales

In MLM, the early birds occupy the juicy slots while having others join the pyramid to enrich them. Same is applicable in Ponzi scheme. The notable difference is that Ponzi scheme ends faster when there's no more inflow of income to sustain the system while MLM can go for so long.
If there are things I need to know in MLM that made it a saint over Ponzi scheme, please let me know.

Pioneers always get the most benefits, that is true universally.  Even in investment, buying shares, and stocks, those who buy in the early phase before the project develops get the most benefit.

Product-focused MLM (under the umbrella of direct selling) being a legal thing makes it a saint over fraudulent Ponzi Scheme any time of the day  .

[DYING_S0UL]

Disclaimer: Please don't invest in MLM Systems, you won't get your invested money back. In the following topic is explained why:

This is a wrong interpretation. MLM is a good marketing concept. What is wrong is the ponzi scheme system. I think MLM and ponzi scheme are different things. This is a wrong interpretation

It's not a wrong interpretation. MLM and Scam often goes hand in hand because it is so critical to gain new customers.

In MLM, the early birds occupy the juicy slots while having others join the pyramid to enrich them. Same is applicable in Ponzi scheme. The notable difference is that Ponzi scheme ends faster when there's no more inflow of income to sustain the system while MLM can go for so long.
If there are things I need to know in MLM that made it a saint over Ponzi scheme, please let me know.

As far as I understand, in Ponzi's there aren't any actual products which is being sold, it's just a dummy company, a false investment, and some fake promises!
On the other hard, mlm's can be used as a medium for an actual product which can be sold for profits and gain new recruiters!
But in most of the cases (mostly), it's used for the opposite purpose (scam obviously)! Otherwise mlm itself isn't bad, the people who are abusing it are.

[avp2306]

Disclaimer: Please don't invest in MLM Systems, you won't get your invested money back. In the following topic is explained why:

This is a wrong interpretation. MLM is a good marketing concept. What is wrong is the ponzi scheme system. I think MLM and ponzi scheme are different things. This is a wrong interpretation

It's not a wrong interpretation. MLM and Scam often goes hand in hand because it is so critical to gain new customers.

Agree to what has been explained here since its common nowadays that there are lots of MLM companies are pulling off their scams. Although we cannot also deny that there are good companies using this system but I guess the warning goes with those companies who usually do fake promises of gaining a lot of money if they are going to get involve and invest some money in their company.

We see so many incident where MLM scams are been pulled off that's why people really needs to be careful when someone opening a discussion about this and say something about that they can earn a lot of money if they put some money on their company and invite a lot of people that will also invest then earn some commission from those people. This is the start of how shady they are trying to pull since those system like pyramid they are trying to run will collapsed soon which is always so bad for new people who entered that system.

[PytagoraZ]

Disclaimer: Please don't invest in MLM Systems, you won't get your invested money back. In the following topic is explained why:

This is a wrong interpretation. MLM is a good marketing concept. What is wrong is the ponzi scheme system. I think MLM and ponzi scheme are different things. This is a wrong interpretation

It's not a wrong interpretation. MLM and Scam often goes hand in hand because it is so critical to gain new customers.

are you kidding me?

What are you talking about? Are we talking about knowledge or bullshit? In the realm of knowledge, it is clear that MLM is one of the marketing models. However, if you are talking about bullshit then you can say that MLM and Ponzy Schemes often go hand in hand, yes that is true, but scientifically they are different.

So, you have come to the wrong conclusion about MLM and Ponzi. You should explain both in a scientific perspective and not consider them the same. And the worse, you are making a campaign to translate this misinterpretation. This is very dangerous.

[Darker45]

I agree with @PytagoraZ in terms of defining the thin wall between MLM and Ponzi Scheme, they are two different business model.  If we look on the difference of the two, the Ponzi Scheme relies solely on the entry of future members while Multi Level marketing earnings depend on the products sold personally and commission on the product sold by the recruited person or downline.  Ponzi Scheme is an illegal business model while MLM being product-focused make it a legal business.

Anyway, this is a good comparison between MLM and Ponzi Scheme, I believe it is better to hear or know it from someone who is really into the system: https://www.linkedin.com/pulse/ponzi-scheme-vs-network-marketing-whats-difference-tim-sales

In all fairness, to compare MLM and Ponzi as synonymous is probably wrong. They aren't exactly the same banana. It's one thing to say MLM is Ponzi and quite another to say Ponzi uses MLM.

So, yeah, I agree, there is a thin wall-- not even a wall actually-- that differentiates the two. But that simply means they aren't exactly the same.

The problem, however, is that for Ponzi to become legal, to become a legitimate business, it oftentimes transforms into MLM or use the MLM model. In which case, 99.9% of MLM businesses are now essentially Ponzi. But, again, that means to say they aren't the same.

[1miau]

Disclaimer: Please don't invest in MLM Systems, you won't get your invested money back. In the following topic is explained why:

This is a wrong interpretation. MLM is a good marketing concept. What is wrong is the ponzi scheme system. I think MLM and ponzi scheme are different things. This is a wrong interpretation

It's not a wrong interpretation. MLM and Scam often goes hand in hand because it is so critical to gain new customers.

are you kidding me?

No but you are kidding yourself.

What are you talking about? Are we talking about knowledge or bullshit?

You are talking Bullshit.
MLM is not scam itself, like stated in my article but it goes hand in hand with Scam and therefore we are best to avoid it.

And the worse, you are making a campaign to translate this misinterpretation. This is very dangerous.

Wrong, it's a translation campaign led by Porfirii and GazetaBitcoin which have selected my article to be translated.
It's not dangerous at all to translate good articles.

Disclaimer: Please don't invest in MLM Systems, you won't get your invested money back. In the following topic is explained why:

This is a wrong interpretation. MLM is a good marketing concept. What is wrong is the ponzi scheme system. I think MLM and ponzi scheme are different things. This is a wrong interpretation

It's not a wrong interpretation. MLM and Scam often goes hand in hand because it is so critical to gain new customers.

In fact, you explain it well in your topic, when you say that MLM doesn't necessarily mean scam, but that often there are scams behind MLMs.

MLM does not necessarily mean that a project is a scam, but in most cases it is. This is mainly because (...).

Perhaps the disclaimer may seem too direct, but I think that it is justified in any case (for those who only read this part of the text, it is a good piece of advice) and especially when the thesis is developed below.

+1

[Yucky]

If the business model a good one, an MLM with clear commissions can be a viable and legitimate marketing measure, but the past has shown the opposite.

I've never been a fan of multi-level marketing (MLM) strategies. Whenever someone introduces me to a referral-based commission structure, I get discouraged. I prefer earning a fair income through direct payment rather than relying on referrals.

I'm skeptical of MLMs because they often prioritize the business's interests over the individuals involved. The model can be unsustainable, as it relies heavily on continuous recruitment. If I don't refer someone in a month, I don't earn money. This can lead to financial instability and even bankruptcy.

I'd rather advise one to work for their money fair and square than get involved in MLMs. However, if it works for you and you think it's a business model you want to pursue, that's okay. Some people prefer to try things out for themselves before taking caution. Whatever works for you is fine, but be very careful not to get hurt.

[btcltcdigger]

Ah MLM, the big brother of Ponzi.
I know few people who got big bucks off of MLM's, and suddenly, they just exited and disappeared.
You know the ones, like Herbalife, Amway, Lyoness, and so on.

I think you really need to be a certain kind of person, shamless 1st, to be able to profit from that

[DYING_S0UL]

What are you talking about? Are we talking about knowledge or bullshit?

You are talking Bullshit.
MLM is not scam itself, like stated in my article but it goes hand in hand with Scam and therefore we are best to avoid it.

Exactly! Ponzi and MLM both may have different business models, but most of the time the end result is always the same: SCAM.

Even now and then, we see these kinds of MLM scams happening. I don't know about your place, but we are seeing a lot of these MLM based companies at my place. They would promise a lot of things, but at the end of the day, they would just scam people. I understand that MLM itself isn't bad, but we are not seeing good either. Most of them turned out to be a scam. Rebranding themselves and starting scamming again.

Just take a look at the news below. People lost more than TK/BDT (our currency) 220 billion or USD 2.2 billion. Literally, my friends invested here (MTFE MLM Scam - I told them not to, but they did anyway), and what did they get? Nothing. So, as 1miau said we therefore can say, "MLM goes hand in hand with Scam somehow", which seems fair IMO.

https://www.dhakatribune.com/bangladesh/322956/another-mlm-company-vanishes-with-20-000c
https://en.prothomalo.com/business/lasu2kcsw2

And the worse, you are making a campaign to translate this misinterpretation. This is very dangerous.

Wrong, it's a translation campaign led by Porfirii and GazetaBitcoin which have selected my article to be translated.
It's not dangerous at all to translate good articles.

How is this dangerous? Is educating people of these business models, trying to tell them about the consequences, and showing them the history a bad thing? It is up to the users what he will do, but shouldn't we at least try to make them aware of the good and bad sides of these businesses?

Honestly, if we were trying to get more people into these schemes, that would be dangerous. Apparently we are not doing that. We are just trying to spread some awareness, and it's best to avoid these models. Nobody is losing anything here!  

[arwin100]

If the business model a good one, an MLM with clear commissions can be a viable and legitimate marketing measure, but the past has shown the opposite.

I've never been a fan of multi-level marketing (MLM) strategies. Whenever someone introduces me to a referral-based commission structure, I get discouraged. I prefer earning a fair income through direct payment rather than relying on referrals.

I'm skeptical of MLMs because they often prioritize the business's interests over the individuals involved. The model can be unsustainable, as it relies heavily on continuous recruitment. If I don't refer someone in a month, I don't earn money. This can lead to financial instability and even bankruptcy.

I'd rather advise one to work for their money fair and square than get involved in MLMs. However, if it works for you and you think it's a business model you want to pursue, that's okay. Some people prefer to try things out for themselves before taking caution. Whatever works for you is fine, but be very careful not to get hurt.

The pyramid schemes they are introducing is not really sustainable and it will end up collapsing at the end. Those who are in the bottom will be the victims of this schemes that's why I really don't like the model introduced by this MLM's scam.

I will never forget the famous MMM global which scam a lot of people from the past. That's why its better to avoid any schemes like that since they really cannot get anything from it unless they invite a lot of people and also became a scammer to earn from referrals also from this they help those top leaders to get rich to.

To many scams like this happened from the past so hopefully new investor in the scene would do a research and learn something from history so that this mistake will not happen again in present times.