Tuesday, December 19, 2017

MLM and Product Psychology

Today's blog post is about the excitement MLMers exhibit when it comes to their products. It is important to note, most MLM products are not unique, do not have any quantifiable research to support their claims, and can be found in retail outlets for a fraction of the price. Yet, MLMers treat their products as revolutionary and their enthusiasm can be comparable to the first iPhone launch. Some of the most common MLM products include, vitamins and supplements, makeup, water filtration units, dietary shakes, vacation packages, car assistance packages, cryptocurrencies, and life insurance. The two most important parts about MLM products, and why they choose these particular areas of the marketplace are, they are unregulated markets and they are highly subjective. MLMs choose to focus on these two markets because their rules are the most vague, and they can say unusually non-credible statements without getting into the same amount of trouble as others.

This leads to MLM's number one problem, getting people to care about their product or service. MLMers use psychological techniques to enhance excitement about their product or service, and the techniques fall into two main categories: individual and group. It is important that they use both styles of techniques, because we are biologically wired to be recognized as an individual and be part of a bigger group. Also by using the following techniques, it significantly disarms consumers from making rational decisions. Some individual techniques MLMers use are, smiles, light contact (hand shakes, hugs, shoulder touching), story sharing, and attentiveness. This helps feed into a consumer's ego and makes them feel important.  Some of the group techniques MLMers use are, forming "team" meetings at houses, and holding conferences at churches and stadiums. By showing people that they aren't alone, and by introducing high-levels of enthusiasm at meetings (large levels of applause for speakers, music, lights), it creates confidence that the "business opportunity" is real. Note, these techniques have nothing to do with learning about a "business opportunity" and are predominately used to sell something. These techniques do not make a person authentic and are often used as a means to an end.

MLMers create a false euphoria around their products and services, because they know very few people want the "opportunity" to go to family, friends, and strangers about soap, water filtration systems, dietary shakes, and makeup. By transforming the "J-O-B" into a dream making, unlimited potential, independent, "opportunity", it makes an extremely undesirable MLM into the choice of a lifetime. 

13 comments:

  1. Many MLMers develop an irrational zeal for their products. Sometimes even to the point where the quality of generic cleaning products or the quality of toilet paper becomes a point of contention.

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    1. Joe,

      The amount of craziness these MLMers display when it comes to their products is fascinating. The willingness to destroy their relationships over these mundane products for the chance to make a couple extra dollars is an interesting thing to observe.

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  2. I remember when my cousin wanted to get me into Amway back in 1971. He came over to our house and demonstrated a product called LOC -- an all-purpose cleaning fluid. It worked pretty well, so it seemed. After all, what was it -- just a container of soapy liquid.

    But he kept going on and on about it like it was the Holy Grail. My parents just stared at him in amused amazement. How could he go on, for twenty or thirty minutes, about a goddamned cleanser? How could a human being work himself up into a frenzy of freaked-out enthusiasm for a mundane thing like this?

    This is the key to Amway and probably all MLMs. They can only grow and prosper in a contrived atmosphere of mindless hype, and quasi-religious exaltation.

    You might say that conventional TV advertising does the same thing. But that's not true. Advertising lets you know that a product is available, tells you what need it fulfills, and then ads a bit of pizazz and playfulness as a come-on to draw your attention and to whet your appetite. The commercial lasts for a minute or two, and then goes off. The commercial doesn't PREACH to you, like a crazed evangelical Bible-thumper, that the product being offered is God's gift to the world. Sure, some commercials are noisy and annoying, but they are mostly cool and rational in their approach to potential buyers.

    This is a key to the product psychology of MLMs. MLM products have to be presented IN PERSON, as a way for the quasi-religious frenzy to become contagious. That's they only way the scheme can work.

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    1. Anonymous --

      That's a wild story about your cousin and his Amway participation in the 70's. Unfortunately, the hype for "LOC" has been replaced with "XS" -- a fitting name considering the price is absurd. The people at the FED I attended were all drinking this crap, and going on and on about how it was packed with vitamins -- because energy drinks and vitamins go together (sarcasm).

      Unfortunately, most people also stare in amusement and excitement when they see lunatics displaying craziness. I certainly did, and made reference to the outrageous antics of the preacher I saw at the FED in my personal story. We seem to be naturally drawn to this sort of energy, and if people are ignorant to the tricks, then they can be quite effective.

      I agree the TV advertising uses some of the same techniques, but as you also stated, "lets you know that a product is available", which I will take a step further. It is being sold to consumers at a retail price and doesn't involve some two-bit hack trying to get people to sign up for the "opportunity" to sign more people up for the "opportunity" and make the product irrelevant. The fact that MLMers spend any time actually talking about the product is only to fulfill a legal obligation, and when I attended the FED, they spent more than 95% of the time talking about "dreams", mansions, cars, "firing your boss", and other non-product related material.

      Also, the commercials don't put people into an emotionally stressful position. There isn't a commercial that can stare at you, make specific comments about you personally (i.e. calling your friends and family losers because they don't understand), use peer pressure by suggesting everyone else is doing it. It is very difficult for most people, especially ill-informed people, to make rational decisions when they are in that kind of environment.

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  3. It is funny, but in my country, some time ago, researchers found that microplastics are to be found in many water sources. Ambots immediately started to promote E-spring as a solution. I have just found, that E-spring is a solution to the problem to which Amway hugely contributed, and most likely till now contributes:
    https://inhabitat.com/ecouterre/which-personal-care-brands-are-still-polluting-the-oceans-with-microbeads/

    Premium price pollutants, these Amway products...

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    1. Anonymous --

      "Amway" is the champion of mundane products. Amway, much like the other MLMs, have found a way to create products that cover vastly different categories, and the problems they address tend to be the very problems they invented. They deliberately go out of their way to not use science correctly, or at all in some cases, and they continue to act as though their products are revolutionary. It is extremely frustrating to deal with, and because they spend most of their time trying to shut conversation down, it is hard to penetrate these topics with their adherents.

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    2. It really makes no sense whatsoever trying to talk or argue or debate with Amway partisans, or with anyone else caught up in an MLM racket. They aren't interested in objective truth. They are committed to something else -- a belief-system that is self-contained in its certainty. It's like talking to a Communist or a Jehovah's Witness or a radical feminist if you attempt a conversation with them.

      That's why it is good that we have two different sorts of anti-Amway websites: highly intellectual ones such as Dr. Doe's, which is aimed at convincing intelligent and unbiased persons that MLM schemes are fraudulent and corrupt; and aggressively hostile ones like Anna Banana's, which is aimed at ridiculing and condemning those hopeless losers who are enslaved by the Amway racket (and other MLMs).

      You can convince an open-minded person with reason and logic and evidence. But with a committed fanatic, you can't.

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    3. Anonymous --

      I have struggled with MLM apologists over the last couple of years, and you are absolutely right. MLMers, much like addicts, are not able to change until they are ready, and no amount of logic or ridicule will fix that.

      I can say, since I started this website, a number of MLM family members have reached out for advice. They also have trouble communicating with their MLM spouses and loved ones, which shows just how challenging it is to deal with fully indoctrinated people. The ability for an MLM to create a rift in a household is saddening, but the fact that people will disregard their partner's opinion so easily, even after years of commitment and trust has been developed, is truly frightening. If there is anyone people should be able to hear and trust, it should be their significant other, and the way MLM attacks that relationship is truly evil.

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  4. It must be frustrating to have such a zeal for the products, while at the same time (unless it’s a new MLM) being forced to suppress mentioning the associated brand too early in conversation.

    If my business was to sell Porsche, or BMW, or Apple, or Samsung, or Nike, you would see me wearing branded t-shirts and caps. I would dish out branded key holders to everyone I meet. You would see it on my business card. Indeed I would emphasise the brand and being the go to guy more than being a business owner.

    To really believe in the products and at the same time to be too ashamed to be associated with the brand outside of a controlled setting is a massive contradiction. No need to be a marketing expert or business guru to suspect that it is thoroughly un-businesslike.

    I believe the endless motivation, conferences, meetings and training, apart from providing additional income streams for top cats, are necessary to continuously overwrite the mind’s quest to revert to reason.

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    1. Yes, that's probably true. People in Amway are constantly trying to convince THEMSELVES (rather than others) that the scam is worthwhile.

      As for the conferences and other motivational meetings, Amway defenders have frequently said at some websites that the purpose of them is to drum up flagging enthusiasm among dispirited IBOs. Without the many meetings and functions, persons would give up the entire racket.

      That's not a business. That's a revivalist church.

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    2. Kwaaikat --

      That's an excellent point! I never thought about the way in which "Amway" specifically hides its identity until the time is right. That is a completely backward form of marketing, and something that should be a huge red flag! In fact, as you stated, everything you do, say, wear, and identify with, should reflect the brand. Heck, look at Nascar and the amount of brands and logos they have on each car. Or, better yet, look at these soccer players and their organizations, they have "Advocare" and "Herbalife" plastered all over their uniforms and arenas, and "Amway" has it's own stadium for the Orlando Magic (NBA basketball team).

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    3. Anonymous --

      Spot on! The MLM recruits are abused by psychological techniques designed for the sole purpose of reinforcing cognitive dissonance. Much like the revivalist church, because there is no support for their claims, they must create a secondary, and much hollower platform, based on exorbitant amounts of enthusiasm and groupthink.

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  5. Awesome.You should follow the #antimlm #antiMLMmovement in Twitter, Facebook and Reddit

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