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MLM Survivors Homepage. Bob Fitzpatrick's "Ten Big Lies"
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"The 10 Big Lies of Multi-Level Marketing
Copyright 1997, Robert L. Fitzpatrick
The multi-level marketing (MLM) field grows and its member companies multiply. Solicitations to join the movement seem to be everywhere. The impression accordingly grows that it is indeed the wave of the future, a business model that is gaining momentum, growing in acceptance and legitimacy and, as its promoters claim, will eventually replace most other forms of marketing and sales. Many are led to believe the assertions that success can be found by anyone who faithfully believes in the system and steadfastly adheres to its methods and that eventually all of us will become MLM distributors.
With fourteen years experience in corporate consulting in the distribution field and after more than six years of research and writing about the MLM model, I have gathered information, facts and insights that show the MLM business model to be essentially a free market hoax. It is analogous to calling the purchase of a lottery ticket a 'business venture' and winning the lottery a 'viable income opportunity for everyone.' MLM industry claims of distributor income potential, its glorified descriptions of the 'network' business model and its prophecies of a reigning destiny in product distribution have as much validity in business as UFO sightings do in the realm of science.
The very legality of the MLM system rests tenuously upon a single 1979 court ruling on one company. The guidelines for legal operation set forth in that ruling are routinely ignored by the industry. Lack of governing legislation or oversight by any designated authority also enables the industry to endure despite occasional prosecutions by state Attorneys General or the FTC.
MLM's economic score card is characterized by massive failure rates and financial losses for millions of people. Its structure in which positions on an endless sales chain are purchased by selling or buying goods is mathematically uns"
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