MLM question about prize trips

[Anonymous]

I had to google what MLM stands for: https://en.wikipedia.org/wiki/Multi-level_marketing

[Anonymous]

Taxes are due based on the full priced "cost" of the trip. Full priced cost will be enormous, a price no one in their right mind would pay. She's not getting the deal you think she is. And she is paying other costs/fees - maybe listed as miscellaneous but they are significant. My guess is she wants you to wish this for yourself - then she gets to lure you into the scheme. Or also she may be getting this "award" for producing (number of orders) and inventory is stacking up in her basement unsold (but why would the company care? She has had to pay for it)

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most MLM is a scam or pyramid scheme. You are either correct that she's paying to attend a conference or alternatively, she's at the top levels of the pyramid.

Then they need to reward her for bringing in business. I bet that the people she brings in under her pay lots of fees for products and being affiliated, etc. and that is where the money is made, not necessarily the products.

Wrong. If the primary activity is sale of product, it's not a pyramid scheme. Some MLM products are good. That's why there's a demand for them.

It's also not illegal to be compensated for running a team, teaching them your techniques, and helping them build their business.

Actual pyramid schemes are investigated and shut down.

Lol. You are clearly in one. Feel free to dump your koolaid from your cup. Once you fill it will the reality coffee you will see that these new MLM companies are exactly like amway and other pyramid schemes. Maybe not illegal, but slimy and predatory. Slimy and predatory businesses have no problem being successful (see payday lending!) but don't think you're providing a valuable service.

I know two people who are selling Arbonne and Herbalife products. They make it appear as though their lives are super fantastic! They claim they're making money, spending time with loved ones b/c of flexible hours, and benefiting from these products themselves.

I call BS tbh b/c I can't stand being around them. It's all about their product. They live, breathe and eat it 24-7, and their spouses are into the stuff, too!

Can you say cult?

[Anonymous]

The “free” trips are not really free.

Airfare is typically not included & is up to the consultants to pay for.
Or some companies may offer an airfare voucher that will only cover the partial flight ✈️.

For instance, the company Le-Vel which markets Thrive lifestyle products will only pay up to $500 for a flight voucher but only for the TOP sales consultants.

And hotels are usually included, but the type of room you get is usually related to your sales + recruiting status within the company.
Like Beach Body gives upgraded rooms to those in the higher tiers.

People typically have to purchase their own passports (for international travel), shuttle/taxi/Uber fees as well as pay for their own meals (if they want three/daily.)
They also must pay for their drinks and also their activity/excursion costs on top of that.
And come Uncle Sam time they will be taxed on their 1099 forms for their “free” trips.

It is a scam.
All of them.
And do not get me started on their “free” cars.

Signed,
A Recent ex-MLM Consultant

[Anonymous]

The “Free Auto Club” bonus is a joke.

Typically a consultant must take out an auto lease on their own w/an auto leasing dealership.
They are responsible for making monthly payments for their automobiles by signing on the ........ line.
If they maintain a high sales quota within the company (varies for each & every MLM) then they receive an add’l cash bonus in addition to their monthly commissions to pay for the lease payment.

If the consultant does not maintain a specific sales + recruitment quota, then they are not given the cash bonus but still will owe their monthly lease payment which can be $800 or more!!
If they default on even ONE payment - that missed payment can screw up their credit immediately.

The lease is agreed upon from both the consultant and the leasing agency.
The MLM does not even act as a middle man.
They are not even on the car lease papers.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most MLM is a scam or pyramid scheme. You are either correct that she's paying to attend a conference or alternatively, she's at the top levels of the pyramid.

Then they need to reward her for bringing in business. I bet that the people she brings in under her pay lots of fees for products and being affiliated, etc. and that is where the money is made, not necessarily the products.

Wrong. If the primary activity is sale of product, it's not a pyramid scheme. Some MLM products are good. That's why there's a demand for them.

It's also not illegal to be compensated for running a team, teaching them your techniques, and helping them build their business.

Actual pyramid schemes are investigated and shut down.

Lol. You are clearly in one. Feel free to dump your koolaid from your cup. Once you fill it will the reality coffee you will see that these new MLM companies are exactly like amway and other pyramid schemes. Maybe not illegal, but slimy and predatory. Slimy and predatory businesses have no problem being successful (see payday lending!) but don't think you're providing a valuable service.

I know two people who are selling Arbonne and Herbalife products. They make it appear as though their lives are super fantastic! They claim they're making money, spending time with loved ones b/c of flexible hours, and benefiting from these products themselves.

I call BS tbh b/c I can't stand being around them. It's all about their product. They live, breathe and eat it 24-7, and their spouses are into the stuff, too!

Can you say cult?

They're taught to "fake it until they make it". Everyone should join "Sounds like MLM but ok" on Facebook. I hate MLMs.

[Anonymous]

(Cont.)

Some companies will offer a likely reduced cash bonus monthly for those that elect to not lease a car out.
Some will not offer a cash alternative at all!

The reason for this is because all MLMs want to basically promote a LIFESTYLE.
By having their representatives drive around in modern, luxury cars only bodes well for these companies.
No company wants their consultants driving around in old, rusty noisy vehicles because then that would spoil the image they are trying to project.

Also, most companies expect its reps to agree to have their MLM business names on their vehicles as well.
Sometimes in three separate areas of their cars.
And when a consultant earns their “free” auto bonus >>> they usually want other consultants, friends as well as family members attend to congratulate the rep by holding a celebration at the dealership.

Balloons, flowers + confetti galore.
And shameless plugging on social media to inspire others to join so they can earn this free car!

Who wouldn’t want a free car?
Just like in “The Price is Right??!”

[Anonymous]

Anonymous wrote:The “free” trips are not really free.

Airfare is typically not included & is up to the consultants to pay for.
Or some companies may offer an airfare voucher that will only cover the partial flight ✈️.

For instance, the company Le-Vel which markets Thrive lifestyle products will only pay up to $500 for a flight voucher but only for the TOP sales consultants.

And hotels are usually included, but the type of room you get is usually related to your sales + recruiting status within the company.
Like Beach Body gives upgraded rooms to those in the higher tiers.

People typically have to purchase their own passports (for international travel), shuttle/taxi/Uber fees as well as pay for their own meals (if they want three/daily.)
They also must pay for their drinks and also their activity/excursion costs on top of that.
And come Uncle Sam time they will be taxed on their 1099 forms for their “free” trips.

It is a scam.
All of them.
And do not get me started on their “free” cars.

Signed,
A Recent ex-MLM Consultant

How much did you make?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most MLM is a scam or pyramid scheme. You are either correct that she's paying to attend a conference or alternatively, she's at the top levels of the pyramid.

Then they need to reward her for bringing in business. I bet that the people she brings in under her pay lots of fees for products and being affiliated, etc. and that is where the money is made, not necessarily the products.

Wrong. If the primary activity is sale of product, it's not a pyramid scheme. Some MLM products are good. That's why there's a demand for them.

It's also not illegal to be compensated for running a team, teaching them your techniques, and helping them build their business.

Actual pyramid schemes are investigated and shut down.

Lol. You are clearly in one. Feel free to dump your koolaid from your cup. Once you fill it will the reality coffee you will see that these new MLM companies are exactly like amway and other pyramid schemes. Maybe not illegal, but slimy and predatory. Slimy and predatory businesses have no problem being successful (see payday lending!) but don't think you're providing a valuable service.

I know two people who are selling Arbonne and Herbalife products. They make it appear as though their lives are super fantastic! They claim they're making money, spending time with loved ones b/c of flexible hours, and benefiting from these products themselves.

I call BS tbh b/c I can't stand being around them. It's all about their product. They live, breathe and eat it 24-7, and their spouses are into the stuff, too!

Can you say cult?

They're taught to "fake it until they make it". Everyone should join "Sounds like MLM but ok" on Facebook. I hate MLMs.

Me too!
Instead of blaming their faulty business models, if sales are not good the top people in these companies will put down the rep by claiming sales are disappointing because the rep did not work hard enough.
That they need to go through more training.

I have seen Zoom calls where a top boss is seen belittling its representatives in a condescending manner.
It’s like emotional abuse.
Pure and simple!!

It is definitely a cult because these leaders encourage its consultants to delete anyone who disagrees with their business practice.
They claim they love its employees and that everyone is family on their team.

But once you show any sign of leaving or even having doubts about whether you can succeed, they are all gone in a momentary puff of smoke.

These team members/family cannot write you off soon enough.

Kinda like Scientology.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most MLM is a scam or pyramid scheme. You are either correct that she's paying to attend a conference or alternatively, she's at the top levels of the pyramid.

Then they need to reward her for bringing in business. I bet that the people she brings in under her pay lots of fees for products and being affiliated, etc. and that is where the money is made, not necessarily the products.

Wrong. If the primary activity is sale of product, it's not a pyramid scheme. Some MLM products are good. That's why there's a demand for them.

It's also not illegal to be compensated for running a team, teaching them your techniques, and helping them build their business.

Actual pyramid schemes are investigated and shut down.

Lol. You are clearly in one. Feel free to dump your koolaid from your cup. Once you fill it will the reality coffee you will see that these new MLM companies are exactly like amway and other pyramid schemes. Maybe not illegal, but slimy and predatory. Slimy and predatory businesses have no problem being successful (see payday lending!) but don't think you're providing a valuable service.

this, what do people think the "L" in MLM stands for?

[Anonymous]

Anonymous wrote:

Anonymous wrote:The “free” trips are not really free.

Airfare is typically not included & is up to the consultants to pay for.
Or some companies may offer an airfare voucher that will only cover the partial flight ✈️.

For instance, the company Le-Vel which markets Thrive lifestyle products will only pay up to $500 for a flight voucher but only for the TOP sales consultants.

And hotels are usually included, but the type of room you get is usually related to your sales + recruiting status within the company.
Like Beach Body gives upgraded rooms to those in the higher tiers.

People typically have to purchase their own passports (for international travel), shuttle/taxi/Uber fees as well as pay for their own meals (if they want three/daily.)
They also must pay for their drinks and also their activity/excursion costs on top of that.
And come Uncle Sam time they will be taxed on their 1099 forms for their “free” trips.

It is a scam.
All of them.
And do not get me started on their “free” cars.

Signed,
A Recent ex-MLM Consultant

How much did you make?

You mean how much did I LOSE?
Lol.

Just some close friends and family members who tried to help me out.
More valuable than money or inventory. 💔

[Anonymous]

"I suspected these trips are mandatory conferences she can write off, but now she's taking friends on her latest prize trip."

Are these "friends" recruits that she brought into the scheme? That may explain it.

[Anonymous]

Yep, the “L” stands for the word “level” which is what this business model is primarily focused on.

The ones at the top level basically steal commissions from those on the bottom level which makes this module so unethical.

[Anonymous]

UGH, my cousin wouldn’t shut up about her vacation/travel MLM. I got suckered into attending a “party,” which is really a recruitment meeting. Whoever said it’s a cult is 100% spot on! I felt so sorry for those poor, ignorant women so eager to pay for packets and memberships, etc.

(I joined that FB group, PP. Thanks for the recommendation!)