A new friend at work is talking with you one day. After a break in the conversation, he says, "You seem to be a person who is driven toward success." You're flattered by his compliment! Before you can respond, he asks you, "I'd like to get your opinion on something. It'd really help me out, and you seem like you're the kind of person who can sniff out an opportunity."
That night, at your friend's house, with several friendly people who are sharing from the snack tray, a man asks a probing question: "What would it be worth to you to have financial freedom? I don't mean just not having to worry about money, but I mean true financial freedom - you could leave your job behind and live life the way you've always wanted to?" Piece by piece, bit by bit, he tells a spectacular story of how he and others like him have done just that: Broken free from the shackles of corporate America, and found true financial freedom! Most of all, he wants to share the secret with you!
The secret, he says, is in building a network of friends who you can help train to sell a wonderful line of products. By cutting out the middle-men and buying products directly from the manufacturer, literally hundreds of dollars could be saved on everyday household items. By getting in on the ground floor and selling directly and sharing by word of mouth, the network can bring income potential that can go beyond your wildest dreams!
Unfortuantely, there is a catch: The dreams never materialize, and no matter how much effort is put into building the network, eventually the dreams never stack up to the reality. Building the business consumes all the time and energy from a person's life, eating away time with family and friends. Friends you try to recruit into the plan give it the cold shoulder, only later to be turned against you because the business consumes your relationship. Eventually, like a house of cards, the house comes crashing down. The Emporer, we find, is naked.
Every year thousands of well-meaning individuals are lured into Multi-Level Marketing plans, only to destroy everything that is meaningful and important in their lives. The dreams of the past begin to be replaced with the dreams of making millions through MLM, and like an acid their life is literally burned away from the inside out. For people who have been deeply hurt, I have collected these resources, some from an Evangelical Christian perspective, some from a secular perspective, to help recognize the problem, and to recover the meaning of living free as a child dependent on God.
If you have comments, issues, or concerns, please email me directly: michaelh@ductape.net
This article is available on the Forbes website but must be purchased.
Part of the National Council Against Health Fraud:
[
http://www.ncahf.org/index.html ]
Publisher's website:
[
http://www.winepressbooks.com/product.asp?pid=611&search=athena+dean&select=Keywords&ss=1 ]
A testimonial of one who spent several years in various MLM organizations, breaking sales records at every company she distributed for, excelling past all others at what she did and still finding success elusive.
This book examines the mechanisms of MLM by a former insider specifically focusing on these aspects:
While this book is not about MLMs specifically, it does discuss in detail how a "corporate culture" can indeed be extremely cultic. As MLMs are often touted primarily as business ventures and occassionally as a "lifestyle," the vast majority of the observations made in this book would apply to MLM organizations as well.
Website:
[
http://www.falseprofits.com/ ]
A review of this book on The Skeptic's Dictionary:
[
http://www.skepdic.com/refuge/fitzpat.html ]
A sample chapter is available online here:
"We're Looking For Five Exceptional Leaders..."
[
http://www.falseprofits.com/FSChaptPg.html ]
There are numerous books available critical of Amway specifically, so I will not attempt to exhaustively list published critiques of the company. However, as a pointer, here are a few resources.
Apologetics Index: Amway
[
http://www.apologeticsindex.org/a43.html ]
"Amway Corporation is among the world's largest and best-known direct sales/multi-level-marketing organizations. Some sociologists consider many such such organizations to be 'para-religions' - movements that, while they can not be classified as religions, include some religion-like aspects (e.g. enthousiasm for the cause, recruitment and motivational rituals, positive thinking, etcetera)."
Apologetics Index: Corporate Cults
[
http://www.apologeticsindex.org/c158.html ]
"Businesses whose techniques to gain employee commitment and loyalty are in some ways similar to those used by traditional cults. This does not necessarily mean such companies are cults."
"In the last half of the 20th century, a new category of home businesses has emerged known as multi-level marketing. From humble roots of door-to-door selling to housewives in the late 1950's, this distribution system has evolved into a multi-billion dollar global enterprise that rivals many Fortune 500 companies in size.
"The explosive growth of multi-level marketing has been fueled by the development of comprehensive 'training' and motivational systems that provide the proselyte with a complete set of moral and spiritual values that are presented as necessary to success in the business. Sadly, many of these values are represented as "Christian" - but are most often a Satanic distortion of Biblical truth.
"This website compares the doctrine and teachings of one of the largest multi-level marketing training systems in America with the teachings of God's Word. The teachings of this multilevel marketing (MLM) training system are well documented in hundreds of cassette tapes, seminars, books and other components that comprise this training system."
The first international organization to expose, study and prevent illegal pyramid schemes.
A consumer organization to battle the Millennium's fastest growing fraud. PSA helps consumers around the world to:
- Recognize illegal pyramid schemes when they are in one, recruited to join one, or have a friend or family member in one.
- Get access to the right information, people and government agencies for exposing and combatting pyramid frauds.
- Provide a voice for people around the world to speak out for proper laws, regulation, and protection from pyramid schemes perpetrators.
In particular, note this page:
Jon M. Taylor, Ph.D. "Do-It-Yourself Evaluation of Multi-Level
Marketing Programs and Suspected Pyramid Schemes"
[
http://www.pyramidschemealert.org/resources/5step/5steps.htm ]
"Is network marketing (NWM) the pathway to riches and time freedom? Dr. Jon M. Taylor, of the Consumer Awareness Institute, spent two years researching NWM, first as a distributor determined to give NWM every chance of proving what it claims to be - then later as a researcher determined to find out if everyone had as much trouble as he did making the large amounts of money that were promised to the diligent.
"Hundreds of NWM participants were interviewed to learn of the effects of NWM on the lives of individuals and families. The results were surprising, and millions of people who are involved would be shocked if they knew what Taylor has discovered about the industry."
Particularly interesting is this observation:
"One of the leading states for network marketing (NWM) participation is Taylor's home state of Utah. Some say that the high trust level between members of the Church of Jesus Christ of Latter-day Saints (LDS) and the pressing income needs of large LDS families lead them to seek out extra income options from one another."
Official website for the book False Profits, listed above. Some articles on the website are located here:
MLM's Questionable Legality
[
http://www.falseprofits.com/FSLegalityPg.html ]
See also MLM Survivor's page "Amway and Free Speech":
[
http://members.tripod.com/~nomorescams/FreeSpeech/freespeech.htm ]
Stephen Barrett, M.D.
"Once upon a time, multi-level marketing was a legitimate business which provided a way for small companies to get their unique products to consumers in small towns and rural areas which had no access to these products. At this time, the products sold themselves, and the multi-level aspect was a way of giving a small reward to those who had worked hard to build the organization. But the focus was always on the product.
"Today, and especially with the growth of the internet, it is possible for consumer to get about whatever they want at competitive prices. There is simply no real need for distribution "systems" as there once was, and indeed the focus of all the programs is not on the products they sell - which are usually either bogus or are available somewhere else to the public at the same or lesser prices. Instead, the focus now is solely on recruiting new people to either buy into the program or else to buy products that are grossly overpriced (i.e., a $1 bottle of "herbal shampoo" for $26), with the idea that those people will recruit additional people who will also buy into the program or themselves buy the grossly overpriced products.
"Thus, today just about ALL of the multi-level marketing programs are scams. In today's internet economy, there is simply no need for multi-level marketing or the overpriced products that they sell - meaning that the only thing they are selling are memberships in anticipation that future memberships will be sold in the future, which is the classic definition of a pyramid scheme, and thus securities fraud."
"Over a 35 year period I have experienced Multi-Level Marketing with Amway, Omegatrend, Herbalife, Shaklee and Life Force International. I joined 4 out of the 5 because friends asked me to do so.
"I always knew that the MLM marketing concept was not illegal. It couldn't be, I thought, because the law allowed it to flourish. My thoughts always were, "If it's legal, it's OK with me."
"I certainly didn't understand the extent to which the presentation of the MLM marketing concept is able to corrupt people's thinking, (mine included). And I certainly didn't imagine that such corruption of thought could get past the best of legal minds. Silly me.
"Now I know that such things do happen, and I have no doubt whatsoever that MLM should be illegal. The facts speak for themselves. Argument and opinion mean little in the face of so many millions of failed distributors."
The following sites are critical of Amway / Quixtar and are included here without comment.
alt.business.multi-level
Archives of this newsgroup can be read online here:
[
http://groups.google.com/groups?oi=djq&as_ugroup=alt.business.multi-level ]
Churches are one of the most popular places for building MLM networks. Here an individual looking to build his network is likely to find other hard-working people who are willing to consider a new business opportunity. Like wolves coming to steal the sheep, it is not uncommon for MLM networkers to literally bounce from church to church and become involved with the ministry, with the sole purpose of building enough trust to draw church-goers into their network.
In the gospels, much is made of the incidents when Christ cleanses the Temple. Consumed by zeal, Jesus Christ overturns tables of the money changers and drives them out of the temple. Today, both pastors and laymen within the church struggle with the same problem, as members become involved with MLM business, and use the church as a primary recruiting ground. Like a virus, the real ministry of the church is slowly replaced by the allure of MLM.
Ultimately, Christians must lovingly admonish their brothers and sisters to stop serving idols of gold and silver and turn towards the Living God. Tough love means that someone might be hurt in the process, and people might be offended. The church needs to be quick to forgive when those caught up in MLM finally come to the end of themselves, and be ready to help them heal.
Not everyone who is caught up in MLM have goals of "sheep stealing" in mind. Christians often become involved with MLMs as a fundraising enterprise - as a way to make money so they can do ministry full time, or to raise money to go to a mission field. These are laudable goals, but the time investment involved in MLM plans verses the amount of money raised should give us pause to consider how best our lives are being invested into the Kingdom. Are we, as Christians, called to build business networks, or to share the gospel and disciple others?
Some Christians resolve this dilemma by arguing that the two are complementary. In some cases, the same passages of scripture that are used by "health and wealth" theologians are drawn upon to show the Christ meant for us to be prosperous here and now. Little emphasis is placed on the fact that Christianity is a hard road, and that rather than guarantees of health and wealth, the Bible only promises believers persecution for Christ's sake.
The tensions caused by MLM marketing in relationships are opposed to the work of building the body of Christ. MLM simply puts too much stress upon relationships to be anything but a virus in the Christian church. Likewise, when dialoguing with unbelievers, we cannot share the gospel of Christ on the one hand, and then make a sales pitch on the other. How is an unbeliever supposed to recognize that the gospel is not merely another sales pitch, selling another prepackaged product to make their life better? In the end, MLM will drive people away from the gospel of Christ. Evangelism is not simply another MLM scheme. It is about drawing people to Christ - not with gimmicks or products, but with the truth of Jesus Christ.
James 4:13-17, NET Bible
Biblical Christianity and Multi-Level Marketing face in opposite directions: one toward Jesus Christ, the other toward money, success, and worldly gain. The Biblical teaching that you will reap that which you sow applies to MLM as much as to any other part of life. The fruits of MLM and Biblical Christianity are like oil and water:4:13 Come now, you who say, “Today or tomorrow we will go into this or that town and spend a year there and do business and make a profit.” 4:14 You do not know about tomorrow. What is your life like? For you are a puff of smoke that appears for a short time and then vanishes. 4:15 You ought to say instead, “If the Lord is willing, then we will live and do this or that.” 4:16 But as it is, you boast in your arrogance. All such boasting is evil. 4:17 So whoever knows what is good to do and does not do it is guilty of sin.
| Multi-level Marketing | Biblical Christianity | |
| Goal | Generate and Maximize Revenue by moving merchandise, by gaining exposure and uplifting one's own name, by generating profits or net revenue | Uplift and Magnify Jesus Christ by sharing the gospel, discipling others, and giving glory to Jesus Christ in all things, regardless of the cost |
| Means | Slick advertising, fancy packaging, distribution networks, price targets, demographic selectivism, litigation, political maneuvering | Relying on the power of the Holy Spirit to transform lives; loving Jesus Christ with all our heart, soul, mind, and strength; reading the Word of God and being obedient to it |
| Results | Inflated understanding of one's own reputation; Boastful of own worldly works; Relying on own financial strength; Asserting one's own agenda | Uplifting Jesus' Name and Reputation; Boasting in Christ; Relying on the power of the Spirit; Knowing and Obeying the will of God |
Jacques Ellul's observations in his famous treatise on the effects of technique on culture, The Technological Society, ring particularly true in the case of MLM businesses. One of the common claims of MLM is that it is a business you can do at home, during your spare time. Indeed, for the average person, some leisure time normally spend watching television or in other non-creative actvities can be productively spent in other ways. However, the techniques of MLM, compounded with the alluring goal of "making it big" and being "financially independent," serve as a powerful motivational mechanism for streamlining one's life down to pragmatic essentials. All activities must be performed with maximum efficiency in order to maximize time spent building the network.
The effect is not unlike that described in Anthony Burgess' The Clockwork Orange. His work drives home the point by illustrating the absurdity of the mechanistic drive by metaphorical use of an orange, a fleshy sweet fruit, whose pulp is replaced by clockwork mechanisms. Everything that made the orange an orange, a sweet and desirable fruit, was replaced with inorganic mechanism.
This metaphor can likewise be applied to the effect MLMs have upon those trying to build their network: The parts of their life that make them human, that literally allow them to re-create themselves, are little by little whittled away until all that it left is an MLM network building machine.
Some MLMs will spend a great deal of effort expounding upon how their products are based on the latest scientific findings. They will often appeal to various articles that have been printed in popular magazines to bolster the case that objectively minded individuals accept that the products are scientifically designed or formulated.
Unfortunately, an article printed in a popular magazine is not the same as being published in a scientific journal. Essentially, if you can find the magazine at a local grocery store, it is not a scientific peer-reviewed journal. Peer-reviewed journals are put out by academic institutions and societies whose members are themselves academics. Devoid of advertising, these journals are filled with dry, academic papers.
Whenever a company claims its products are "scientifically designed," you should verify these claims, and the credentials of the scientists who developed the products. Ask for a Curriculum Vita - a listing of academic achievements, published papers, and recieved honors. The scientists should be able to provide this information quickly - if not, or if the research is not in a field congruent to the products they have developed, be warned that something is fishy! Likewise, request information about academic papers that the products were based on. If these resources do not present themselves when you request them within a few weeks, then a red-flag should be raised about the products!
All this aside, product development is not scientific research; it is engineering. Calling the products "science," however, gives a stronger connotation in the mind of the consumers then "engineering," a connotation that is often unwarrented.
When presented with the business opportunity for the first time, many people have a "gut reaction" they can't quite explain; an initial skepticism to the plan. Quite simply, it seems to good to be true. To get around this initial skepticism, the members of the MLM put out the line "When I first heard, I was skeptical, too!" It's not an intentional deception - but it is part of the shared myth of the organization that what they are involved with really is "OK!" despite an initial concern, a way to suspend disbelief.
The initial disbelief - concern that one is not getting the full story on the organization, a suspicion that everything is a little too perfect sounding, and concern that the dream being presented cannot stack up to reality - turns out to be too true in the end. Be careful that you do not suspend your critical thinking skills just because someone tells you "We've all felt that way!"
Since MLMs are by nature business opportunities, individuals caught up in MLMs typically will not start student organizations or be involved in any contributing manner with campus groups. They will, however, attend organization meetings with the purpose of growing their network so they can make their pitch. Unsuspecting college students are often easy to recruit for MLMs, especially ones that are increasingly disenchanted by the academic rat race.
On the UT-Dallas campus, I have noted two specific MLMs with a representative presence:
Advocare International is a Carrollton, Texas based company whose products are primarily nutritional supplements and athletics products. The product quality, credentials of their scientific advisory board, and endorsement list are significant. Unpaid endorsements are given by a wide and growing number of athletes, sports teams, and national sporting leagues.
Full disclosure requires that I note that I am a registered distributor for Advocare, although I use my distributorship to buy product at a discount. Indeed, I use Advocare products regularly and personally have no qualms about the company itself. This said, the paradigm for the company is still that of network marketing. I have had friends who have bought into the dream of being able to self-support by selling product, only to slowly destroy their lives pursuing the business to the exclusion of all else. To make a few dollars on the side while taking product is one thing, but to focus all your energy and attention into making the business a primary source of income is an unrealistic goal that cannot be met.
I would encourage current Advocare distributors to keep a close eye on new distributors and be careful that they don't burn themselves out pouring their lives into the business plan to the exclusion of all else.
Quixtar is the new web-enabled face of Amway for the new century.
Amway's Corporate Website:
[
http://www.amway.com/ ]
Quixtar has been attractive primarily to English-speaking international students, particularly ones from India. I interacted personally with one couple, with whom I because aquainted with as a result of my willingness to exchange contact information. However, the lure of the business plan can be extremely deceptive. The world of appearences - success, financial stability, and self-confidence - must be kept up at all times as one seeks to bring others into one's network. How does one integrate one's education with the world of MLM? Why go through college if one can simply make it big at MLM? There are no solid answers to these questions for those whom MLM has consumed their lives.
Sharing the truth in love is difficult when those you care about won't accept that they are being consumed by a dream they will never be able to catch. It is never hopeless, though. Remember that the night is darkest just before the dawn. The weight of the organization and the weaknesses of the principles it is built upon will eventually cause the whole system to collapse. Even if loved ones lose everything, by being there for them throughout the worst, they will come to realize the truth. Keep up hope that they will see MLM for what it is, and keep praying that the Lord will lead them out of their destructive lusts.
"I'll always be younger than this society. What do you expect
me to do, keep silent all my life?"
Oleg Kostoglotov, from Aleksandr Solzhenitsyn's Cancer Ward
michaelh.com© Copyright 1997-2004, Michael Hamblin, All Rights Reserved. [ michaelh@ductape.net ] Last Modified: Thursday, 29-Apr-2004 21:04:24 CDT |