MLM Hype - Reading Between the LinesBy Robert Burtis
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Can You Recognize MLM Hype For What It Is?
MLM pyramid schemes thrive and survive on building fast and furious “momentum”. Unscrupulous promoters will say almost anything to expand their downline matrix as rapidly as possible, hoping people will get caught up in the enthusiasm of the moment and not ask a whole lot of questions. We’ve put together some of the most popular MLM catch phrases from several different programs in pre-launch.
| ...each of these catch phrases should be a red flag for anyone serious about participating in an honest and legitimate network marketing opportunity. |
Is a network marketing company a scam just because they use some of these phrases? And is it illegal to make these claims and promises?
Absolutely not. This is America where the First Amendment, free market competition, and over-the-top promotions rule. Whether it’s a Hollywood movie, a presidential candidate, or a new Ford SUV, we’ve come to expect hype and a heavy handed sales pitch at every turn.
But each of these catch phrases should be a red flag for anyone serious about participating in an honest and legitimate network marketing opportunity. Do real due diligence – ask the tough questions – research the people behind the program and study the product being offered. Honest companies will welcome your inquiries.
Companies that are evasive or unresponsive should be considered a bad risk for the honest network marketer.
Have You Ever Heard This One?
- “The "spill over" trickling down through the organization is likely to be
huge!”
Quite a supposition for a brand-new MLM program in pre-launch! Perhaps they are right - after all, they only say it’s “likely to be huge”. But not a good reason to consider joining their program.
- “Several years from now this MLM company will be a household name
WORLD-WIDE.”
Easy to say, but nothing more than wild, unsubstantiated speculation and it’s absolutely meaningless. This one is often accompanied with comparisons to being the “next” Microsoft, Amway, or AOL.
- “Bill Gates is calling this the next revolution in technology.”
Most likely Bill Gates is not even aware of this “next revolution in technology”, he certainly has not endorsed this company, he’d probably sue them if he was aware of how they were misrepresenting him, and if he actually liked the technology – he’d simply buy it for Microsoft.
- “Conference calls are happening worldwide. It's the biggest launch in MLM
history.”
Aren’t they all? They’re hoping that by telling you this is the “biggest launch in MLM history”, you will jump at the chance to sign yourself up and then recruit your friends, family and associates without performing any sort of due diligence. Don’t fall for it!
- “…featuring the world's greatest teachers and trainers.”
It is highly unlikely that the “world’s greatest teachers” would risk their reputations by endorsing and participating in an MLM program in pre-launch. So ask for names and appropriate contact information. Verify their involvement and what they are committed to providing as a service or product before signing up and sending in your money.
- “I promise you, it will make a profound and life-changing difference on
your family's future.”
It's impossible for even the greatest minds or MLM legends to guarantee that to everybody. And their “promise” is unknowable, unenforceable and unbelievable. Ask questions – and get answers – before you join.
- “Here is all you have to do…”
A gross understatement. You know darn well that nothing is going to happen until you send in some money.
- “Again, thank you for helping to make our new MLM program a great
success.”
Now, the author insults those who are still paying attention by implying that its possible for a company to achieve success even before it's launched! They have every legal and moral right to make these claims – and you have a vested self-interest in verifying their claims and promises before joining – not after!
- “You have made a difference already!”
This is so patronizing and phony, it’s embarrassing. If they’re going to attempt to manipulate you like this in pre-launch, just imagine what you can expect to see if this MLM ever actually launches…
- “Secure your spot today for FREE. It will launch in a few days.”
Here’s a novel idea – build the company, finish the web site, and introduce the product. Then start recruiting. Of course it’s free to join today – it’s a “tap root” system – and ten seconds after you give up your e-mail address, you’ll begin receiving an endless parade of “Upgrade Now!” notices, each of which costs more to fund than the one before it.
- “Just about everybody in MLM is joining this one now. It's only a matter
of time before someone will ask you to join. Join for FREE now and have your own
website and send it to your list.”
There’s no way of proving this or disproving it – and it shouldn’t matter. You should only join a network marketing company that has a product you believe in and leadership and top promoters you respect with a track record of success and integrity. Following the crowds and joining because everyone else is supposedly doing so is one of the worst reasons for joining. Make your own independent decisions based on real due diligence and solid information.
And then there is our favorite:
- “Waiting will be a MASSIVE ERROR IN JUDGMENT.”
Based on the track records of the many failed MLMs that have relied almost solely on this kind of MLM hype to recruit downlines and new members, waiting is probably the best thing you could ever do. Joining MLM programs in pre-launch based only on promoter claims and promises is the “massive error in judgment” we suggest you avoid.
Robert Burtis is editor of a frequently visited internet site, www.worldwidescam.com, a MLM consumer advocate website that mixes parody with editorial. The site is provocative, engaging and controversial. Its mission statement: "pro MLM; anti scam".
For more detailed discussion on this and other issues, please visit www.mlmlegal.com.