-Your Daily Cookie-
© 07/20/08
By Dahni
Ying & Yang (opposites) – Certified Organic
Good day, here is your cookie for today.
Why is MLM (multi-level marketing), dead? Oh sure, they are still around and most of them do not refer to their being a MLM, but that’s what they are. The reasons they are dead are two-fold. First and primarily, THEY DO NOT WORK for most people. The business model is flawed. The second reason they are dead, relates to the first reason, as even the word or idea of a MLM is associated with ‘pyramids,’ pyramid schemes and just makes or has left, an overall negative impression with most people.
I have already dealt with the origin of MLM (see: the Big-O Cookies page above or click here), but Amway was most likely the first ever, MLM company. It is my opinion that they never intended to deceive or hurt anyone. The fact that they are still around is due to the success of the company and not their business model. The difference is due to so few people EVER make money with Amway or in ANY MLM. They all just have flawed business plans. As for pyramids and pyramid schemes, let us here now, for once and only, and for finality understand, pyramids are illegal! MLM’s are NOT pyramids! Amway fought for years and it has been legally concluded that MLM’s are NOT pyramids! Just get that out of your mind. Still, we are looking at flawed business models, which a MLM is.
What is the difference between a MLM and Network Marketing. There are at least 25 separate and distinct differences. Just because it may look, sound and feel like a MLM, does not mean that it is. And just because the companies do not even refer to their company as a MLM, does NOT mean it is not. Well, how can one tell? What are these differences?
Flavor of the Day
MLM Network Marketing
1. Paid Monthly Paid Weekly
2. Leaders Break Away No Breakaways
3. Monthly Volume Flush Accumulates for at least One Year
4. Paid on Levels (avg. 1-10) No Levels (Computer Search to Infinity)
5. Continuous Recruiting 2 Good People ($100K+ Can be made)
6. High Monthly Requirements 50BV[i] (Min) – 150BV (Max)
7. High Attrition Rates (90%) High Retention (80% +) -
If you were making money would you quit?
8. Limited Training[ii] Structured Training[iii]
9. Front End Loading[iv] No Loading (Sales Rep for $0)
10. Warehousing of Products Company does Warehousing / Shipping
11. Single (Limited) Product Lines Nearly unlimited (Growing)
12. High Prices (Can’t Retail) Competitive Pricing (CAN Retail)
13. Very Difficult to Succeed Designed for Average Person to Succeed
14. Large Investment Small Investment / LITTLE or NO RISK
15. Profit From Other’s Failures You ONLY PROFIT when Others Succeed
16. One Business Center Nearly Unlimited Centers
17. Reorders in 001 Center ONLY Downloading of Business Volume
18. 6 Figure Income – 8 to 10 Years 2 – 3 Years (Just follow the Plan)
19. Small Payout (80K GBV[v] = 4K) Large Payout (80,000GBV = $22,000)
20. First In : Most Money “New People Earn from others’ experience
21. Private (Non-Disclosure) Private (Full Disclosure)
22. Limited to Regional Growth Poised for International Expansion
23. Pre-Conceived Notions New, Innovative Concept
24. Group Competition Group Synergy / Placement
(After first Two – one on left, one on right – any
other distributors are placed under existing distributors - (including your own re-entries!)
25. Limited Income Unlimited Income
These are the primary difference between MLM’s and Network marketing. There are others. Such an opportunity exists in Network Marketing. If you or someone you know are interested in more information, see the tab above ‘Baker’s Dozen’ or click here.
“Systems under which people work account for 95% of all errors and failure; therefore, the key to excellence is to perfect the system.”
- Dr. William Edwards Deming -
Your cookie for this day, ‘Why MLM is Dead and Not the same as Network Marketing’ + 25 Reasons Why Network Marketing is Not MLM (multi-level marketing).
Tomorrow’s cookie - ‘Green Power,’ ” lush green lawns and plants that save you money”
Baking cookies just for You,
Dahni the cookie man
Dip Dunk or Don’t
[i]BV = Business Volume (core products)
[ii]Limited Training is NOT to be confused with the appearance of constant training i.e. books, tapes and seminars which do NOT produce results for most people, but generally only add to the success of an up line or the company.
[iii] Structured Training – Minimal costs, minimal requirements, standardizing of training (anyplace, anywhere for anyone), which does not take away time from generating success, but makes it possible for most people.
[iv] Front End Loading – Large inventory required upfront or at the ‘front end.’
[v]GBV = Group Business Volume


July 20, 2008 at 3:16 am
This was a really good blog post because a lot of people seem to think that MLM and network marketing are the same thing. Obviously, as shown in your list, they arent. I hope a lot more people read this so they too can come to an understanding between the differences.
August 19, 2008 at 11:31 am
[...] As to my business being a scam or involving levels, I have already dealt with this issue. If you are interested, you to can see 25 reasons why what I do is NOT MLM (multi-level marketing. This to is sad that before you can tell people what something is, you first have to tell them what it is not. See here. [...]