MLM’s - what’s the deal? (Multi-level marketing/aka pyramid selling)

[Annie65]

This is my opinion too! My mum bought some for me a couple of years ago and I loved it, they’re cheap enough to wear every day for work and I like to drown myself in perfume so it works for me.

I never ever thought I’d sign up to an MLM, in fact I looked down on them. I hate the ones that bombard you and message people trying to get them to sign up. If people wanted to sign up then they’d let you know.

But I signed up to FM a few months ago just to give it a go- if it didn’t work out then I hadn’t lost anything. This was before Facebook was saturated with sellers so I did quite well at work - I’ve only made about £500 profit so far but it’s £500 I didn’t have before.

I don’t push for recruitment at all because as above, I personally find it annoying and most of it is a load of bollocks so why would I try and push it onto people? I don’t have any recruits and don’t want any. I also only advertise products that I’ve used myself and that I think are worth it. I hate the ‘boss babe’ and ‘support small businesses’ bollocks as well. It’s so cringe, you’re not running a business love. I just do it for fun. But the woman a few levels above me is absolutely raking it in! She has about 1000 team members so is making a fortune and she’s got a free Range Rover.

To be honest with you I’m thinking of giving it up soon. It was okay before the pandemic but thousands of people have signed up thinking they can make a quick buck and the company can’t cope. I’ve hardly made any orders because they can’t get on top of stock and it’s embarrassing having to tell people that I can’t order what they want. Plus to tell you the truth a lot of the products are crap and overpriced! The perfume is great but the makeup and cleaning products are tit.



I don’t understand how this works either. I make £4 on a standard bottle. Commission goes by points e.g. I get 10 points from that bottle, my up line also gets 10 points from it, so does their up line and so on. But I must have about 20 up lines above me so where does all that money come from?

I signed up myself to buy perfume at cheaper prices but the stuff I want is never in stock for myself so I wouldn’t ever try and sell it to others,
I think the stress of being in a queue, trying to get peoples orders in is too high for the sake of a few quid

 

[Lalalalaaaaaa85]

Have a look on the companies house website. most successful businesses file acounts.
You will often see huge Directors loans which are often increasing and they don’t have the ability to repay.
The money is spent on cars, home improvements and holidays for attraction marketing. They are then left with large loans when the life cycle peaks.

This is what I’m thinking. This girl on my fb is making out she’s made nearly £100k in a year and she says her and her husbands car is paid for. Just seems too good to be true.

I mean I’m not tempted as I earn a good wage in a normal job and I don’t have to ‘hustle’ or work on holiday

 

[Custardcream13]

Yes, there are a few people at the top of Forever Living in the UK who are in serious trouble with their directors loans accounts.

oh really? Spill the tea I did forever living years ago, made a bit of money but got out before I was truly sucked in.

 

[Falkor]

Success Inspired Limited (Claire & Keith Spencer) - directors loan account has gone from just under £10,000 in 2014 to £205,000 in the most recent accounts to June 2019.

Residual Wealth Management Limited (Natalie Heeley) - 2019 accounts should have been filed at the end of June and weren't. The 2018 accounts show a directors loan account of £753,802, up from £631,746 in 2017. Earliest filed accounts in 2014 show no directors loan at all, so that's a LOT of money taken out in four years.

Emma Cooper Global Limited (Emma and Shaun Cooper) - 2019 directors loan account stands at £402,232, the earliest filed accounts for 2016 show no directors loan at all, so again, a lot of money taken out in the past few years.

Basically the lifestyles are being propped up by enormous amounts of money taken out of the business. Crucially you don't pay tax on them if they're repaid to the company within 9 months of year end, but if you fail to repay there's a corporation tax charge of 32.5% - that would mean, in Natalie's case, a tax bill of £244,985.65. Each of these three companies is showing the previous year's loan paid back and a new, bigger one taken out, this is known as bed and breakfasting and if HMRC can prove the loans haven't been paid back, but simply rolled into a new one, they can treat it as if it was unpaid and levy the tax charge anyway. I should think some of the directors have had some pretty sleepless nights with the levels of bonus cheques in recent years.

 

[Cacacoisfarraige]

Gemma Easdon - touted as a former John Lewis branch manager is bankrupt - owing a large amount of Tax. This is never mentioned during her presenting, she is offen wheeled out as a Poster girl

Louise Perry (who recently left) is also bankrupt

the companies might get a brief shot in the arm with COVID but the products are still overpriced and the compensation funnels the money to a select few.

most of the followers won’t question their outlandish claims of financial freedom. yeah right - back at work with a 4 week old

 

[SqualorVictoria]

I'm not sure if this has been mentioned already as I haven't read the whole thread but I'd recommend googling Elle Beau Younique- a fascinating series of blog posts on the Younique MLM scheme

 

[Custardcream13]

Success Inspired Limited (Claire & Keith Spencer) - directors loan account has gone from just under £10,000 in 2014 to £205,000 in the most recent accounts to June 2019.

Residual Wealth Management Limited (Natalie Heeley) - 2019 accounts should have been filed at the end of June and weren't. The 2018 accounts show a directors loan account of £753,802, up from £631,746 in 2017. Earliest filed accounts in 2014 show no directors loan at all, so that's a LOT of money taken out in four years.

Emma Cooper Global Limited (Emma and Shaun Cooper) - 2019 directors loan account stands at £402,232, the earliest filed accounts for 2016 show no directors loan at all, so again, a lot of money taken out in the past few years.

Basically the lifestyles are being propped up by enormous amounts of money taken out of the business. Crucially you don't pay tax on them if they're repaid to the company within 9 months of year end, but if you fail to repay there's a corporation tax charge of 32.5% - that would mean, in Natalie's case, a tax bill of £244,985.65. Each of these three companies is showing the previous year's loan paid back and a new, bigger one taken out, this is known as bed and breakfasting and if HMRC can prove the loans haven't been paid back, but simply rolled into a new one, they can treat it as if it was unpaid and levy the tax charge anyway. I should think some of the directors have had some pretty sleepless nights with the levels of bonus cheques in recent years.

wow! Thank you for taking the time to explain all that. That’s absolutely wild but I’m not surprised in the slightest and recognise all those big names!

 

[urghmummybloggers]

I brought some FM from a friend - mainly because I wanted to save money on buying Chanel and Viktor&Rolf. It’s ok - I paid £25 for two but it barely lasts at all. I brought the dupe from Lidl for 3.99 and it’s by far the superior product.

I don’t have any problem with body shop and their products but I’m added to a group every other day at the moment - I also saw this by a prominent Body shop consultant and it riled me. Some people will feel guilty about not “investing” in their friends “business” and that is bleeping shady

 

[Hello Kitty]

Ugh, I know someone who has started to sell the FM stuff. What makes me laugh is that she tries to be this designer wife and stay at home mum, buys all designer stuff for her husband and daughter then tries to sell this crap on FB. There's no way that she uses it but she still tries to sell it everyone and now she's signed a few friends up to her 'own business'

Another person I know has started her own 'travel business'. I don't talk to this person anymore but please .

 

[Gembo]

I brought some FM from a friend - mainly because I wanted to save money on buying Chanel and Viktor&Rolf. It’s ok - I paid £25 for two but it barely lasts at all. I brought the dupe from Lidl for 3.99 and it’s by far the superior product.

I don’t have any problem with body shop and their products but I’m added to a group every other day at the moment - I also saw this by a prominent Body shop consultant and it riled me. Some people will feel guilty about not “investing” in their friends “business” and that is bleeping shady

It’s not necessarily about not wanting to support friends though, it’s often about the products. There’s only about 2 Body Shop products I like, the rest I’m not a fan of. I’d much rather comfy granny pants from Sainsbury’s than Ann Summers. Boots and Superdrug sell a wide range of products that I’ve tried, tested and liked and don’t get me started on crap like Juice Plus for me I do feel it’s down to the quality of the products half the time. Personally Im happy to buy the original fragrance than a dupe and I like the convenience of just popping in a shop to buy something I know & like than placing an order through a friend. It’s really unfair of them to guilt people.

I had a neighbour that did Body Shop & some other thing & she would do parties for selling it. She’d really pressure you into going & I always felt obliged to buy stuff I didn’t want. It really got on my nerves & you start running out of excuses why you can’t go. I just wouldn’t have the nerve to do that to people. I’ve had quite a few Facebook invites during lockdown from people now doing Body Shop & Scentsy & I’m just not responding, somehow I can still see the posts even though I haven’t joined and they must each be doing somewhere between 5 & 10 posts a day

Ugh, I know someone who has started to sell the FM stuff. What makes me laugh is that she tries to be this designer wife and stay at home mum, buys all designer stuff for her husband and daughter then tries to sell this crap on FB. There's no way that she uses it but she still tries to sell it everyone and now she's signed a few friends up to her 'own business'

Another person I know has started her own 'travel business'. I don't talk to this person anymore but please .

The travel ones boil my blood. I don’t understand them at all. For a start it’s hardly a thriving time in the travel industry. Secondly if I’m going to book a holiday it won’t be with Mandy on Facebook and thirdly if it’s all about being a travel agent why are all their posts about recruiting rather than holidays?!

 

[Shestheman22]

I brought some FM from a friend - mainly because I wanted to save money on buying Chanel and Viktor&Rolf. It’s ok - I paid £25 for two but it barely lasts at all. I brought the dupe from Lidl for 3.99 and it’s by far the superior product.

I don’t have any problem with body shop and their products but I’m added to a group every other day at the moment - I also saw this by a prominent Body shop consultant and it riled me. Some people will feel guilty about not “investing” in their friends “business” and that is bleeping shady

Ugh I hate that. Sorry but I’ll stick to buying my pants from Asda rather than paying a fortune from Ann summers just because someone I know sells it.

Posting things like that will not get people on your side. Being pushy has the opposite effect. And they are not running a ‘business’, that really boils my blood they are working and making money for someone else. You are not a ‘boss babe’.

 

[seaborgium]

Good to see a thread on this, they prey on the vulnerable. I have a friend from Bangladesh, who moved away to Malaysia, and got sucked into one of these. I was the only friend that pointed out what a MLM was, and how much she was being taken for a ride. It was called Pruvit.

Another friend's partner got sucked in after she had cancer, and looking for a change. Sadly, the only change was in her attitude, lies, and led to them splitting up. My friend was in bits messaging me, asking for advice what to do. Brainwashed was what we used. That was for the Forever Living Products.

A third friend recently started a new profile on social media, and yes she's trying to spam the Cambridge Weight Plan.

It's very sad as all three are intelligent women (ages range from late 30s to early 50s).

 

[MotherofDragons]

Ugh I hate that. Sorry but I’ll stick to buying my pants from Asda rather than paying a fortune from Ann summers just because someone I know sells it.

Posting things like that will not get people on your side. Being pushy has the opposite effect. And they are not running a ‘business’, that really boils my blood they are working and making money for someone else. You are not a ‘boss babe’.

Oh gosh i'm sorry I don't want to support little local businesses like Ann Summers and The Body Shop

 

[Lalalalaaaaaa85]

Oh my, just saw on my social media a hun sharing lots of pictures of her up and down lines with cars they have paid for by the company...they all have the company logo on the side!! I can’t work out if it’s photoshop or do they actually have to drive round like that?!

 

[Heyguysswipeup]

Oh my, just saw on my social media a hun sharing lots of pictures of her up and down lines with cars they have paid for by the company...they all have the company logo on the side!! I can’t work out if it’s photoshop or do they actually have to drive round like that?!

yes they have the logos plastered all over the car which they have to keep! Looool

the only ‘big’ mlm person I’ve heard of is Emma Cooper. My friend got sucked into forever living and was sharing posts about Emma all the time. It’s so frustrating seeing people get sucked into these tit shows!!

 

[openbook1]

Oh my, just saw on my social media a hun sharing lots of pictures of her up and down lines with cars they have paid for by the company...they all have the company logo on the side!! I can’t work out if it’s photoshop or do they actually have to drive round like that?!

They have to drive it around. I've seen the Mercedes with the ugly Arbonne decal on it

 

[Lynseyp]

I follow an influencer who is flogging the FM perfume brand. Today they have picked up a brand new Range Rover that the company contribute too.
These influencers are bound to do well as they have a large following and therefore can hit targets.
I don't understand why this company would contribute towards monthly repayments of a car as well as paying "insane commission". Surely FM is one big con???

 

[seaborgium]

I follow an influencer who is flogging the FM perfume brand. Today they have picked up a brand new Range Rover that the company contribute too.
These influencers are bound to do well as they have a large following and therefore can hit targets.
I don't understand why this company would contribute towards monthly repayments of a car as well as paying "insane commission". Surely FM is one big con???

My friend's partner that did Forever Living said she's got this new sport's car for her birthday with the money she had earned. Only she hadn't, her dad bought it for her...and was quite old and not very good, but made a good picture. As I said above she lied all the time to her partner, friends, on social media, and to herself.

 

[Casperron]

I love Avon too but a close family member sells it and is always pushing it on me, I’m sorry but in this day and age I can’t be waiting 2+ weeks for delivery either

 

[KerChing]

I follow an influencer who is flogging the FM perfume brand. Today they have picked up a brand new Range Rover that the company contribute too.
These influencers are bound to do well as they have a large following and therefore can hit targets.
I don't understand why this company would contribute towards monthly repayments of a car as well as paying "insane commission". Surely FM is one big con???

If it’s anything like the MLM I have experience of, your car is paid for monthly by the company whilst your team hit their sales target. If they don’t, you pay the repayment that month. Only the managers with people working under them get cars.