There's a documentary about LuLaRoe coming out, so let's talk MLMs. What are your experiences with MLMs? Have you ever bought an MLM product? Have you ever sold MLM products? Have you ever seen relationships damaged from MLMs? Will you be watching the documentary? I'd love to hear your thoughts.
I think the difference between an MLM and a company like Avon or Mary Kay is that with an MLM the seller is required to purchase a lot of the product upfront. I believe that Avon and Mary Kay don’t work that way. The seller just places the orders she receives. I’m not 100% sure of this, but I think it’s correct.
There is a podcast by one of the women (Roberta Blevins) in the new documentary called, "Life After MLM." She goes over the way Avon and Tupperware used to be different, more sales of products vs building a downline, but today function more like MLMs. It's a fascinating podcast and covers so many of your questions!
The podcast The Dream was all about MLM’s: the history, how they manage to stay legal, etc. it was so fascinating. I highly recommend it to anyone who wants to understand MLM’s, and also to anyone who enjoys a good narrative non-fiction podcast!
I am wary of any product that isn't sold in regular stores - I had no idea that Usborne books also had an MLM model, because you can buy them at any regular bookstore, on Amazon, etc. I have no idea if they have a downstream, but they are the only "good" MLM I can think of...
At my daughters preschool there was a really nice mom who everyone thought was just very friendly. Until she'd invite us to drinks or parties and without fail it would turn into a pitch to join her MLM team. I got facebook and instagram messages for a couple years thinking oh how nice she's reaching out to say hi, they moved away, and no it was really still about joining her MLM team. It bummed me out.
Mary Kay is definitely an MLM! Same exact structure, and at least when I got recruited to do it, sellers had to buy a LOT of product and keep it in their stock. I lost over a thousand on that to Mary Kay, and never earned anything. Granted, I'm terrible at sales and only had one or two parties, but it's without a doubt an MLM. I know less about Avon, but assume it's the same. And Tupperware and the essential oil companies we all know about are both definitely MLMs too.
Yeah, there is no such thing as a “good” MLM. The business model for the founders is to have the reps buy lots of product (they will say there’s no need to keep inventory, but the companies still push it, the most attractive products sell out all the time, and so it’s difficult to build a customer base without buying premium products so you can get them to your customers). The business model for the vanishingly small number of reps who make actual money is to get in early and build a huge downline. If the founders were really in it to sell products, they would do so in the normal way. Ultimately they’re in it to exploit people, and way too many good-hearted and well meaning people wind up exploited.
I've been to an in-person party for Noonday Collection. I enjoyed it, but felt a little oogy hosting one. That said, I really love the products and the business model they have of supporting artisans to build their own businesses. So, I continue to buy pretty much all my jewelry there.
I have zero interest in having a party (even online) or repping for Color Street, but I do like the strips, so I buy them from a local rep. Thankfully, neither of the Noonday or Color Street reps that I buy from have ever pressured me to go beyond being a customer. If they had, I probably would not enjoy the products as much as I do.
The most compelling theories I’ve heard for the LDS/MLM nexus: 1) the emphasis of missionary work in the church means that a high proportion of LDS folks have the confidence and interpersonal skills that work well for sales, and 2) LDS folks generally have an interesting mindset that combines entrepreneurial drive with respect for authority and hierarchy. Folks with the former but not the latter would be more likely to start their own companies, but having both makes the MLM mode attractive (to the detriment of many LDS women).
My aunt has 6 children and every single one of them did LuLaRoe after my cousin got in early. She also got a bunch of cousins and my aunts in on it too. My cousin made lots and lots of money but when the rest of the family (her downline) wasn't making anything, they started dropping out of the company. Half of the family still doesn't talk to each other anymore because she was mad they quit. I bought a few dresses and was gifted a couple of skirts but I wouldn't host a party so I was deemed unsupportive. With the recent LuLaRoe lawsuits, everyone is out of the business now. My cousin was the last to leave and is doing her own boutique now. She definitely isn't able to keep up her lavish LuLaRoe lifestyle anymore. I'm really interested in seeing the new documentary after seeing it all go down in my own family.
I had a horrible experience with Mary Kay cosmetics. I was recruited by a friend And I tried to make it work. When I realize I was losing more money than I was making, I opted to send all of my product back. The manager I was working under had a terrible hissy fit and told me that I couldn’t send it back. She was really nasty. It was hundreds of dollars worth of make up etc. I was a wreck! I called the headquarters of Mary Kay and they told me I could return everything and receive a refund. I didn’t lose a friend, thank goodness, but it sure did leave a bad taste in my mouth about MLMs.
I will support a friend who starts up with an MLM if its something I will genuinely use... I would not support a 'new friend' for the reason that many years ago during a particularly lonely and tough time in my life I had gone on a leadership retreat and met a girl who I thought could be a future close friend. We met for coffee after the retreat and within 10 minutes of sitting down she started on the Amway sell. The entire coffee was her trying to get me to sell the products and I was fighting back tears. Not the usual response I would have but again, I needed a good friend in my life and thought I had found one... never heard from her after that, i can only assume because I wasn't interested in Amway. I was crushed. This experience was over 15 years ago and I still remember the feeling. Its the reason I am wary of anyone acting friendly when I know they also sell an MLM product.... my first instinct is not to trust them!
From my former mother-in-law: "I need to increase my tithing so that the bishop can see how well I'm doing with this company." I saw her wreck many friendships through her sales pitches. Sad.
Gabrielle, while I’ve never been to Alt Summit or have an interest in that particular area, your posts about Alt Summit tell me that it is a fabulous event and very popular. You are such a creative person I am sure you could create an online version that is just as popular until you can do it face to face again? You would have to rethink the format, 3 days online would be hard, but what about a series of six online 3 hour events each focused on a particular topics over the course of the year?
I've always hated MLMs and never understood the appeal. I am also Mormon but in my experience most people who pushed MLM stuff on me were not. I was invited to more parties when I lived in Las Vegas, Cincinnati and Connecticut. It drove me crazy at times when I was strapped for cash myself and didn't want to spend even $5 on something I didn't need. I dreaded getting invites and the guilt trips "Just come. You don't have to buy anything." Yeah sure but someone is going to try really hard to get me to. I have now lived in Provo for the last 8 years (where there are a lot of headquarters nearby). Interestingly no one here has ever invited me to a MLM party and I can only think of one person who sold anything. I think the real issue is the need for more job flexibility for women and specifically moms. Most people I knew bought into it because they needed extra income and could not easily work at a job outside the home. MLMs really seem to prey on these people.
Ugh--this all hit so close to home. Growing up my parents really tried their hand at Amway. When it inevitably failed my mom swore she would never do another MLM again. Well, I actually didn't know that until a few years ago when she said, "I swore I'd never do another MLM again, but this one's different..." The main difference is that they were high end products she was constantly pushing on the family that didn't fit anyone's taste but hers and it aggravated us all to no end. I would say no to a $400 backpack she tried to get me interested in, so she'd casually leave a catalogue around the house. She approached family members that she knows could not afford to pay hundreds of dollars for a purse. I had no idea how deep she was into all of this until the company apparently changed their pay structure (of course they did!) and she left... it's been a number of years now and we've still been receiving old product of hers for Christmas/birthday gifts. I didn't realize how much she had purchased, and thus lost. Sadder still, she has participated in at least 2 more MLM's since, and possibly a third. It's maddening and sad at the same time.
I think the difference between an MLM and a company like Avon or Mary Kay is that with an MLM the seller is required to purchase a lot of the product upfront. I believe that Avon and Mary Kay don’t work that way. The seller just places the orders she receives. I’m not 100% sure of this, but I think it’s correct.
There is a podcast by one of the women (Roberta Blevins) in the new documentary called, "Life After MLM." She goes over the way Avon and Tupperware used to be different, more sales of products vs building a downline, but today function more like MLMs. It's a fascinating podcast and covers so many of your questions!
The podcast The Dream was all about MLM’s: the history, how they manage to stay legal, etc. it was so fascinating. I highly recommend it to anyone who wants to understand MLM’s, and also to anyone who enjoys a good narrative non-fiction podcast!
I am wary of any product that isn't sold in regular stores - I had no idea that Usborne books also had an MLM model, because you can buy them at any regular bookstore, on Amazon, etc. I have no idea if they have a downstream, but they are the only "good" MLM I can think of...
At my daughters preschool there was a really nice mom who everyone thought was just very friendly. Until she'd invite us to drinks or parties and without fail it would turn into a pitch to join her MLM team. I got facebook and instagram messages for a couple years thinking oh how nice she's reaching out to say hi, they moved away, and no it was really still about joining her MLM team. It bummed me out.
Mary Kay is definitely an MLM! Same exact structure, and at least when I got recruited to do it, sellers had to buy a LOT of product and keep it in their stock. I lost over a thousand on that to Mary Kay, and never earned anything. Granted, I'm terrible at sales and only had one or two parties, but it's without a doubt an MLM. I know less about Avon, but assume it's the same. And Tupperware and the essential oil companies we all know about are both definitely MLMs too.
Yeah, there is no such thing as a “good” MLM. The business model for the founders is to have the reps buy lots of product (they will say there’s no need to keep inventory, but the companies still push it, the most attractive products sell out all the time, and so it’s difficult to build a customer base without buying premium products so you can get them to your customers). The business model for the vanishingly small number of reps who make actual money is to get in early and build a huge downline. If the founders were really in it to sell products, they would do so in the normal way. Ultimately they’re in it to exploit people, and way too many good-hearted and well meaning people wind up exploited.
I've been to an in-person party for Noonday Collection. I enjoyed it, but felt a little oogy hosting one. That said, I really love the products and the business model they have of supporting artisans to build their own businesses. So, I continue to buy pretty much all my jewelry there.
I have zero interest in having a party (even online) or repping for Color Street, but I do like the strips, so I buy them from a local rep. Thankfully, neither of the Noonday or Color Street reps that I buy from have ever pressured me to go beyond being a customer. If they had, I probably would not enjoy the products as much as I do.
The most compelling theories I’ve heard for the LDS/MLM nexus: 1) the emphasis of missionary work in the church means that a high proportion of LDS folks have the confidence and interpersonal skills that work well for sales, and 2) LDS folks generally have an interesting mindset that combines entrepreneurial drive with respect for authority and hierarchy. Folks with the former but not the latter would be more likely to start their own companies, but having both makes the MLM mode attractive (to the detriment of many LDS women).
My aunt has 6 children and every single one of them did LuLaRoe after my cousin got in early. She also got a bunch of cousins and my aunts in on it too. My cousin made lots and lots of money but when the rest of the family (her downline) wasn't making anything, they started dropping out of the company. Half of the family still doesn't talk to each other anymore because she was mad they quit. I bought a few dresses and was gifted a couple of skirts but I wouldn't host a party so I was deemed unsupportive. With the recent LuLaRoe lawsuits, everyone is out of the business now. My cousin was the last to leave and is doing her own boutique now. She definitely isn't able to keep up her lavish LuLaRoe lifestyle anymore. I'm really interested in seeing the new documentary after seeing it all go down in my own family.
I had a horrible experience with Mary Kay cosmetics. I was recruited by a friend And I tried to make it work. When I realize I was losing more money than I was making, I opted to send all of my product back. The manager I was working under had a terrible hissy fit and told me that I couldn’t send it back. She was really nasty. It was hundreds of dollars worth of make up etc. I was a wreck! I called the headquarters of Mary Kay and they told me I could return everything and receive a refund. I didn’t lose a friend, thank goodness, but it sure did leave a bad taste in my mouth about MLMs.
I will support a friend who starts up with an MLM if its something I will genuinely use... I would not support a 'new friend' for the reason that many years ago during a particularly lonely and tough time in my life I had gone on a leadership retreat and met a girl who I thought could be a future close friend. We met for coffee after the retreat and within 10 minutes of sitting down she started on the Amway sell. The entire coffee was her trying to get me to sell the products and I was fighting back tears. Not the usual response I would have but again, I needed a good friend in my life and thought I had found one... never heard from her after that, i can only assume because I wasn't interested in Amway. I was crushed. This experience was over 15 years ago and I still remember the feeling. Its the reason I am wary of anyone acting friendly when I know they also sell an MLM product.... my first instinct is not to trust them!
From my former mother-in-law: "I need to increase my tithing so that the bishop can see how well I'm doing with this company." I saw her wreck many friendships through her sales pitches. Sad.
Gabrielle, while I’ve never been to Alt Summit or have an interest in that particular area, your posts about Alt Summit tell me that it is a fabulous event and very popular. You are such a creative person I am sure you could create an online version that is just as popular until you can do it face to face again? You would have to rethink the format, 3 days online would be hard, but what about a series of six online 3 hour events each focused on a particular topics over the course of the year?
I've always hated MLMs and never understood the appeal. I am also Mormon but in my experience most people who pushed MLM stuff on me were not. I was invited to more parties when I lived in Las Vegas, Cincinnati and Connecticut. It drove me crazy at times when I was strapped for cash myself and didn't want to spend even $5 on something I didn't need. I dreaded getting invites and the guilt trips "Just come. You don't have to buy anything." Yeah sure but someone is going to try really hard to get me to. I have now lived in Provo for the last 8 years (where there are a lot of headquarters nearby). Interestingly no one here has ever invited me to a MLM party and I can only think of one person who sold anything. I think the real issue is the need for more job flexibility for women and specifically moms. Most people I knew bought into it because they needed extra income and could not easily work at a job outside the home. MLMs really seem to prey on these people.
Ugh--this all hit so close to home. Growing up my parents really tried their hand at Amway. When it inevitably failed my mom swore she would never do another MLM again. Well, I actually didn't know that until a few years ago when she said, "I swore I'd never do another MLM again, but this one's different..." The main difference is that they were high end products she was constantly pushing on the family that didn't fit anyone's taste but hers and it aggravated us all to no end. I would say no to a $400 backpack she tried to get me interested in, so she'd casually leave a catalogue around the house. She approached family members that she knows could not afford to pay hundreds of dollars for a purse. I had no idea how deep she was into all of this until the company apparently changed their pay structure (of course they did!) and she left... it's been a number of years now and we've still been receiving old product of hers for Christmas/birthday gifts. I didn't realize how much she had purchased, and thus lost. Sadder still, she has participated in at least 2 more MLM's since, and possibly a third. It's maddening and sad at the same time.