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FIB - Scams 101
Re: Prepaid Legal
Posted By: Dennis Bevers In Response To: Re: Prepaid Legal (Bob Stewart)
Date: Sunday, October 21, 2007, at 10:10 a.m.(pst)
>> As for MLM businesses all companies are MLM's when you think about
>> it.You have the manufacturer, sells to the distributer, who sells to the
>> wholesaler, who sells to the retaler, who sells to you and me, each adding
>> to the price and taking their cut. The company that I'm an associate does
>> not take a cut of the money I make from a sale. The other amounts are from
>> general profits of the company listed on the stock exchange.>> Bob
Yes Bob,
And we've all heard that tired old argument (spewed exclusively by MLM corporations) that all business is MLM. Not even.
Your local Chevy dealership buys his cars from Chevrolet headquarters, as well as his parts and oil. He is contracted with Chevrolet and GM, and wouldn't be a dealer if he and his financial backers hadn't met all the criteria and inspections, which can be a 3 to 5 year process. Even someone who is independently wealthy who just wants to buy an existing dealership has to be investigated and meet with approval. Not quite multi-level marketing.
Then there's the local mom and pop grocery store on the corner. They carry all kinds of foods, household cleaning products, and sometimes hardware. They buy from multiple sources, may have to meet minimum purchases with some sources, but can carry any brand they have a market for. The Folgers coffee rep doesn't tell him he can't carry the preferred Louisiana brand of coffee or their biggest competitor's coffee.
The local restaurant buys meet from one source, produce from another, bread products from a third, staples from yet another, and can change sources at will.
The meat supplier doesn't tell him to only sell a meal to someone who has been pitched and refused to buy his own restaurant.And although the franchise restaurant may not have as much freedom to choose who he buys from, and what is on the menu, he doesn't have to worry that the frachisee in the next county, with come over, hold meetings, and sell 5 others on setting up competing restaurants in the same city.
And Chevrolet and GM don't prohibit the car dealer from advertising and selling cars online.
And the bookstore owner doesn't have to recruit others to buy books to store in their garage, while signing up to more book store opportunists, who will be advised to sign up yet 4 more distributors, all for the sake of saving 20% on the books they want to buy and read for themselves.
Likewise, the person who wants to make money as a cashier at Kroger's, doesn't have to try to sign the customer up before they can check them out, and doesn't have to sell Kroger's groceries to her friends and family in order to receive a paycheck. And, the Kroger's cashier, doesn't have to buy a minimum monthly purchase or autoship, and can even spend 100% of his or her grocery dollars with the competitor.
The similarity seems to be that in some markets the products may pass from the manufacturer through a wholesaler (and possibly a jobber) before it reaches the retailer and end user. There are no 8 level or infinity payouts for endless levels who add no value.
Years ago, Amway operated a bit more like the existing distribution systems, in that the products passed from company to first-in distributor, through the downline, until it reached the consumer. Now, most MLM companies ship direct to the individual dealer and autoship customer, with no mid-level sponsor lifting a finger.
And in traditional distribution systems, each layer, jobber, wholesaler, and retailer have different and specific functions, that may or may not add value, but are still involved in moving the merchandise from the manufacturer to the end user. MLM has circumvented these roles, while adding 2 to 12 or more layers that add no value, and aren't handling the products to pass them along to the next level in the chain.
So MLM only has the corporate office, which may not even manufacture a product, who has the order drop-shipped to the final consumer, yet pays out a percentage to multiple layers of people who didn't assist in moving the product to the retail location.
As they say on Sesame Street, "One of these things is not like the other"....
My opinion for what it's worth.
Dennis Bevers
My home-based bizopp that I guarantee isn't for everyone!
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