Anonymous wrote:Op you don't know what the truth is when it comes to your friend's "business". There is so much fronting and faking of success with these mlms that it's safest to assume that at least 50% of what comes out of her mouth is not true.
Anonymous wrote:Anonymous wrote:Has she paid taxes on those trips?
Not the OP, but I believe the cost of the trip is considered taxable income. I have a few friends who are very high up on the food chain of their respective MLMs and they frequently go on trips (Hawaii, Jamaica, etc). I am very, very curious about how much you have to make to qualify for one of those trips, btw.
Anonymous wrote:Has she paid taxes on those trips?
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.
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.
Anonymous wrote:My cousin started selling MLM a few years ago. In her first year, she won a trip for two to Hawaii. She quit a few months later and went to work for another MLM. In this new MLM, she has won a trip for two or four people every single year. She is very aggressive and if anyone could profit, she could. However, I just don't see how she's winning trips every year while selling products in the $8-15 range. I suspected these trips are mandatory conferences she can write off, but now she's taking friends on her latest prize trip. I am confused. Can anyone with experience explain how the prize trips work? I'm not trying to be snarky, but I don't see how the company could do this kind of reward trip every year when the mark up on the products is so low. She's the only MLM sales person I've ever known to win anything (or claim a profit - most dropped out after a year with inventory in their basements). I'm really curious. Thanks.