Good morning Mr Harriman, I have a full-time job but I am looking for a part-time job and my question to you is about the “recruit and build kind” of businesses like Herbalife, Amway, GDN and so on.
Are they worth it and can someone invest their time on them or are they another opportunity to enrich someone? For more business marketing you can checkout this blog QuantomCo Ontario.
I just want to understand my friend referred me to you and said that u can advise me on such. Thank you and I appreciate your help.
Everyone knows by now that I’ve very skeptical about multi-level marketing schemes like Herbalife, Amway and all the others.
I simply don’t see how a business model like theirs can make anyone any money, other than the people at the top of the pyramid.
But don’t just rely on my skepticism, you should rely on the figures that these companies are required to publish.
In various countries, including the USA, following legal actions by the authorities they publish income statements showing how much their recruits actually make from the business.
For example, Herbalife published figures in the USA that covered 2015 and which showed that 90% of all the money earned by Herbalife representatives was earned by the 10% at the top.
The remaining 10% of the money had to be distributed between the 90% of people stuck on the lower rungs.
The average annual income of the group at the bottom was a mere $303.
And that’s their income, not their profit.
That’s before they paid their expenses, the phone bills, the transport costs and their electricity bills.
It’s safe to assume that their profits were either zero or more likely negative.
It’s the same story with other MLM companies such as Amway.
Their figures show the same pattern and there’s no reason to think other MLMs aren’t the same.
The only way to make any money from MLMs is to be at the top of the pyramid making money from the suckers lower down who do all the hard work.
Please don’t waste your time.