I feel sad.
This week, my friend and housekeeper got sucked into an MLM program (FHTM – Fortune Hi-Tech Marketing) that she and her hubby can ill-afford — $300 to join, $70 per month to maintain.
Sadly, they were naive to the hard-sell tactics of “sell what everyone wants anyway”, not to mention being susceptible to the big money promises. Those of us in reall businesses know it’s not easy and that it doesn’t happen overnight – but MLM is another (bad) matter entirely.
Ergo, I had to go on a video rant about how I hate MLM — wearing my jester hat.
Don’t hold back Rosalind. Tell us how you really feel. LOL.
You’re right, FHM does seem like it borders on an illegal pyramid scheme since the products are there only to make the thing past the basic tests of AGs.
I do feel, however, that it would have been more appropriate had your blog been entitled “I hate FHM” or “I hate scams.” I do not believe it is fair to paint all MLM (or Network Marketing) businesses with such a wide brush.
My wife and are associates with a company called Watkins. It has been around for 143 years and people come up to me to buy the products on a regular basis because of their longevity and name-brand recognition. It only cost me $39.95 to get started and I my wife and I spend about $100 per month on products that we absolutely love, but we are not required to do so. We don’t make a cent for the act of sponsoring a new associate, only on the actual movement of products.
To be fair, I’m sure if you compiled statistics on affiliate marketing, you would find that a healthy percentage of affiliate marketers never make a dime either. No matter the endeavor, you will always find people who will not put for the correct effort (in sufficient quantity) to achieve any level of success.
I’m not trying to argue with you. You are right. It does sound like your friend was scammed. I would just ask that you be fair and not lump everyone into one big pile.
Have a blessed day.
Tim
Hi Tim,
You are absolutely right. There are good Network Marketing companies out there and Watkins is a great example. Thank you for contributing to the conversation!
Cheers,
Ros
Hello Rozalind,
I have to tell you, that I was surprised reading your “I hate MLM”.
When you, the big, famous Rosalind Gardner, write such a declaration, that made me think that all MLM companies are scams and cheat, etc. I understood that you, the professional authority, have prove for what you said was – “Ergo, I had to go on a video rant about how I hate MLM — wearing my jester hat.” …
I think that a person like you, who has build a list of many subscribers (I don’t really know how many), should be careful about each and every word you write, and what you wrote in this article o what ever it is called, was not so smart in my opinion, and showed me at least, that you really hate MLM, and no matter which company it is, because if it was the hate for FHTM – Fortune Hi-Tech Marketing, you have been writing differently!!!
I am a Herbalife distributor for almost 16 years, and so are my 3 children. It never was easy for me being a distributor, but the personal changes, the person we all became, my personal results I achieved by using the products (I lost 22 k”g when I started in 1995 and improved my health). We helped many people to improve their health and/or income, and many of our down lines are still with us. We had, and will have in the future distributors which left for different reasons – some didn’t like it, others did not have patience for the success to come, and others for other reasons.
There are many MLM companies out there, and people like you should be careful expressing themselves in public, especially when they have time thinking (you write, you do not speak in public, so there’s time to think).
I apologize for my English, but hope I made myself clear.
Gerry
I know someone that made the opposite of a Fortune with FHTM.
MLM’s are a NIGHTMARE!
I finally learned my lesson after trying several myself. Not Fortune, but other big names that I’ll just keep to myself. I could kick myself for all the wasted money and effort.
Try telling the diehard MLM’ers what you said in the video. They would just say that you are “negative”. I know because that’s how I was treated when I would bring up similar concerns. Every single one of the MLM’s I tried had sponsors who were almost cult like in their belief in the program.
If you end up going to a live in person meeting, which many of the big MLM’s still do (old school marketing)……they put on the pressure THICK! It’s all rose-colored glasses and airy fairy crap.
I decided that affiliate marketing was A LOT cheaper and cult free.
I am a Fortune Hi-Tech Marketing Rep. I welcome conversations so nobody “gets duped.”
Wow Ros! Having known you for a while now, I can see how upsetting this is to you. I find myself in an interesting position as I’ve worked in affiliate marketing for almost 12 years now and last year, as I think you know, had the opportunity to start and manage an affiliate program for a network marketing company that currently runs in conjunction with their distributors.
I made a comparison chart once to the similarities between network marketers and affiliates and they are really two different ways to get to the same end. I will whole-heartedly agree that there are bad eggs out there in MLM. But, having sat through my fair share of affiliate classes over the years, I have been shocked at the people who paid for a Vegas weekend to learn about affiliate marketing and then proceeded to get a sales pitch that, hey if you sign up now (for a mere $2-5k) we’ll put you in a mastermind group for the next 12 weeks, but hurry cause we’ve only got 20 spots. (I calculated that several of the speakers combined made about $100,000 in a matter of hours off these pitches). I can say that at that same conference it was only you and one other speaker out of about 10 that actually taught me something useful and didn’t bait me then proceed to give me a pitch to pay to learn more.
That is what I love about you – you’re real, you’re authentic, and you do tell it like you see it. Its sad that this one company’s tactic has to ruin your perception of an entire industry. One thing that shocked me when I started with this company was that people actually showed up and took tours of the office. They made appointments to talk to the CEO. They researched. They did their homework before joining. Hopefully now, when someone takes a few minutes to google, this FHTM article will come up, and they can hear your side of the story and make an informed decision on joining or not. In the end, regardless of which business model one picks though, those that are successful, are the ones that actually work their business.
Any affiliate manager can probably attest that about 90% of their sales are generated by about 10% of their affiliates. And, interestingly enough, affiliate managers are often hired because they are friends with all of the super affiliates and tout that they have lots of connections to get your product on someone’s site who will then tell all of their followers…
. (See the parallel? 
) There is someone I’d love for you to interview as a followup to this story. He’ll actually be in Canada at the end of the month and has a very interesting story on his family losing everything when an MLM company went broke. He worked in corporate America for a while and when he created his own company chose the networking model for several reasons. I think it would help people realize that there are good people out there in an industry that is heavily criticized but, as you’ve shown, sometimes rightfully deserved.
Hey Ros, maybe I should read ALL of my email before posting responses as I just got this in my email. Good news for your housekeeper! There was a class-action lawsuit filed this past week against FHLM
“Class Action lawsuit filed against Fortune Hi-Tech Marketing claiming RICO violations. A class action lawsuit was filed against Fortune Hi-Tech Marketing (FHTM), its officers, directors, Presidential Ambassadors and all National Sales Managers claiming fraud, pyramid scheme and RICO violations in the Eastern District of the Federal Courts on September 2, 2010. The class action lawsuit filed on September 2, 2010 against Fortune Hi-Tech Marketing, Inc., its officers, Presidential Ambassadors and National Sales managers claim RICO violations….”
Read more: http://www.articlesbase.com/criminal-articles/fhtm-gets-hit-with-class-action-racketerring-and-fraud-class-action-3193569.html#ixzz0yxZuQ3rN
You absolutely ROCK, Rosalind! And I feel sad, too, for your housekeeper…ugh… Those programs are sickening!
I could not do any kind of MLM, because not only is it time consuming, but it’s not as effective as affiliate marketing.
Hi,
I joined some MLM before and I should say most of them have good products. I have been using Amway’s household products and bought their supplements since the day I joined. If the products are good, and you can take advantage of the discounts provided for members, I don’t see why it is bad.
Cheers
I hate MLM companies also! I’ve been fortunate that I have never joined any. My mom got involved with one a couple years ago but it didn’t work out. My older brother bought into another one.
No one that I know personally has ever benefited from an MLM company.
Hey Ros!!
WOW you said it all!!
I too have been “involved” with MLM at some point (I believe almost everyone has) and no it did not work out. What I did find out, however, at the last business I belonged to, was that the “higher ups” keep re-cycling their down lines to other organizations, so they are always on the top of the heap raking in the dough – neat huh??
I am a “not too successful affiliate” but I am not giving up on it as I believe that I will eventually “get it” Yes I have the SAH and will be putting into practice what you preach.
Thanks for the rant
Michael
I was involved in aMLM company that if one signs up 10 people who sign up ten people down to five levels then you make over $3000 a month indefiitely but sadly I am not motivated any longer to get people to sign up to get their own domain name a facility to create their own website and to earn extra large bonuses by the number of people they sign up for $10 a month It .is not so exiting anymore The only real money I made was when I signed up a man on the web and he took off like a rocket.He was a natural but then he took off literally to greener pastures . I think people who have got what it takes are fit and healthy and are passionatley motivated will succeed at anything even MLM and even at being an affiliate.;-)Just my humble opinion!
ok Michael did a penny just drop for me or what! I am thinking that is what happened to my star affiliate? I have always suspected my upline was involved somehow.They can see everyone’s performance in their downlines what is to stop them recruiting the best in that way?There is no real protection against that is there?. Sooner or later the truth comes out. I wish I was as sure of winning the lottery as I am of that.OMG.and he took the lion’s share of his downline with him. It finally makes sense now.>:-(.
Hey Ros,
Gee, I guess it’s a good thing you’re so non-committal about your opinions, there…
(wilting lily that you areN’T ;o) )! But, seriously. . . although I am as new a neophyte to affiliate marketing as you could possibly imagine, I’ve had several MLM and/or Network Marketing experiences (as a distributor), over the last 35 years, some of which were every bit as awful as your comments described, and some of which will always remain among the best and most productive moments of my entire life! And, with the sole exception of my first few experiences with Amway***, back in 1977, I’ve never had reason to question the ethics or integrity of the companies I represented. As is also true of parents, teachers, kids, schools, cars, appliances, beauty products and home improvement contractors, there are some EXCELLENT_excellent_ MLM’s and/or Network Marketing companies, and there are some really sleazy operators, too.
And, as is every bit as true of first experiences with all of the other categories just mentioned, experience-borne insight — or, if possible, the insights from _qualified_ friends, following _their_ experiences — is the only thing that can protect anyone from falling prey to the sleazebags lurking in the shadows. But let’s be clear, here: by “qualified”, I only mean those who’ve already had both positive and negative experiences with them, so as to offer a more balanced perspective.
The biggest problem with the business model is the way in which most “MLM newbies” are approached, lured in, and then taught to repeat the process upon others, rather than the business model, itself. For example, Ros, if I told you that there was a great line of work called “Neurosurgery”, and that if you decided to do it, “you could be earning “6 figures in under 10 years”, you would naturally expect to have to undergo a significant degree of training and some lifestyle modifications, right? And what if the name of this new career was Web Gaming Designer, or Corporate Litigator, instead? But with MLM (and Affiliate Marketing?),many naive folks just assume that a $99 kit is all that stands between them and untold riches, and I believe that it’s their greed, laziness, impatience, unwillingness to educate themselves, & stubbornly delusional thinking that causes most of the problems; not the vehicle to which they apply them.
So, when you say that you hate MLMs, remember that sweeping generalizations are usually only partially true… like those of like college dropouts, who claim that “those ‘college’ things don’t work… I tried one of ‘em, years ago: I put in lots of time and energy, and I nearly lost my shirt!”
P.S. — *** Despite my negative first experience with MLM as an Amway distributor (which was patently awful), I joined up a second time, four years later, under a friend who wound up teaching me an immense amount about both sales and marketing (“ML-” and otherwise), during the year, or so, that that Amway experience lasted. In the end, it was the combined pressures to buy more over-hyped (and overpriced) motivational books and cassettes than my fledgling business could reasonably afford, and the pervasive cultural combination of Religious Right mores, blind jingoism and endless peer pressure to conform to their narrow range of accepted norms that finally got me running for the door. Still, I left that experience with the profound conviction that “many hands (can) make light work”, and if the nonsense that surrounded the model could be stripped away, and a fair and reasonable method of training introduced, the Network Marketing concept, at its core, might very well be a worthwhile one. I still believe that, today.
Internet Marketers are not any different in there approach to selling the same million dollar lifestyle dream online aka Jonathan Budd. I know joining affiliate programs are free but there are other costs involved to create that income too.
After reading these comments, I have to say I agree with some and the others, well I’ll just bite my tongue.(smile)
As someone who likes the MLM industry and who’s made some money in it, I’d like to offer my 2 cents -IE opinion…and it’s an opinion, nothing more-nothing less. Not singling anyone in particular out here
First, are there scams, ponzi’s and schemes out there? Sure there are, but this goes for ANY industry…Ever heard of Bernie Madoff? others?
Next, Anyone looking to join an MLM business should do their due diligence beyond what their potential sponsor is telling them. Look for the good the bad or the ugly, if it passes the “smell test” then join if you wish. Legal MLM opportunities are just as good if not better than many other so called business structures. Look at how ANY big corporation is structured….What is it? It’s a Pyramid…Now this doesn’t mean it’s illegal, just look at the structure.
It’s narrow at the top with the ceo and company heads (that make the most money) while the employees are the widest at the bottom (who make the LEAST money by the way) Now, what’s the difference in MLM’s and corp America?
Next, ALL MLM is a structure to where the company owners choose to pay it’s distributors the lion share of the money to market it’s goods and services and pay them well as opposed to spending millions on traditional marketing campaigns
Nothing wrong with that is there?
HERE’S the single BIGGEST factor that dictates whether or not a person will be successful in MLM or not. THE SYSTEM used to bring in new customers/downline members. You MUST have a highly duplicatible “system” that works the same way for everyone (everytime). A system that takes distributors out the selling equation, while letting the professionals do what they do best and that is close sales.
Think about this- What if your MLM company said the only way to make money is by holding hotel rah rah meetings. How many people would you have to go through to get them to join your team if this was the marketing pitch? Thousands of course! Why? This is NOT duplicatible whatsoever! People hate selling, but in this setting they hate it way more! It won’t happen!
The weakest link is ALWAYS the lesser experienced people who don’t have proper phone skills, online/offline marketing skills, and more. As I see it, you don’t really “try” something and fail…you either succeed or QUIT. Trying to work an MLM for a few months until the next hottest “flavor of the month” opportunity comes along doesn’t quailify for “trying to make it work”. Like ANY business you MUST acquire the skills necessary to make it work. You cannot expect to jump into some “deal”, talk to your buddy or coworkers, or worse family members, then expect to get rich, it doesn’t work that way!
The majority of people run out of marketing money (after they’ve blown through their warm market) and quit because they can no longer sustain their search for fresh blood IE LEADS…
Again, when you have a system that does the hard work for you, then “failing” really isn’t an option. Those who fail simply didn’t have the right system or one at all. Folks, using your MLM companies website and materials is the last thing you want to do. Nobody cares about their 3rd quarter profits, or ORAC score of their jungle juice, or 10 level forced matrix. They want to work with winners…People who brand themselves as pros. People join PEOPLE, not MLM companies!
I won’t get into “other” things, but there’s alot worse scam material out there than a legit and well run MLM business. Too many people treat MLM/Home businesses as a hobby. They join then magically think it will produce wealth in 2 months and when it doesn’t they quit and call it a scam. It takes hard work and time to build and income just like ANY hardware store or burger joint you start offline. You don’t see people who bought into a 500,000 franchise drop out and say I quit after 3 months do you?
They hang in there and make it work…Same has to be done in MLM’s or affiliate marketing. I like both, but MLM can be more powerful simply because you can get paid on may levels and develop residual income. Where as with affiliate marketing you can only get paid a few levels with a multi tiered program.
Bottom line is you need a system that works the same way for a pro or grandma down the street who can barely turn on the pc. Once true duplication can occur, then ANYONE who doesn’t drop out has a fair and equal chance at success.
I can go on and on, but I’ll stop here ( smile again)
Craig
Hi Craig,
Thanks kindly for your perspective and I agree with you on a number of different levels.
Too bad many MLM companies don’t take your advice.
As to the difference between affiliate marketing and MLM, well, AM pays recurring in so many different ways. You should check it out.
Cheers,
Ros
I’m also an avid affiliate marketer, I do plenty of it
Clickbank, CJ, Shareasale, you name it (wink wink)
Yes I know depending on which AF program you join it can pay via recurring sales. I like all kinds of membership sites and continuity type programs as well.