Wednesday, January 10, 2018

MLM and Marriage

Today's blog post is about MLM and its consistent abuse of boundaries, especially when it comes to marriage. MLM, unlike most other businesses, does not stray away from people's personal lives, but rather attempts to merge with it. MLM is often pitched as a "side income opportunity" with the potential to become "a retirement opportunity". It is supposed to be flexible and allow people to "grow" at their own pace. However, the more a prospect becomes involved with the "training", the more time and energy the "business" requires. Also, because of the unorthodox hours in which MLM holds its "meetings" and "seminars", it directly conflicts with the personal lives of the prospects and members. Ideally, in the MLM "business", a member would look for prospects during the day, then spend their evenings and weekends trying to convert potential recruits into members, and even if a member doesn't have new recruits, they are still supposed to attend every meeting.

Marriages become the target of MLM scrutiny, because marriages can directly interfere with the MLM "business". Assuming both partners are not engaged in the MLM, the MLM leaders will create scenarios in which both the marriage and the MLM "business" cannot survive in harmony. MLM leaders will force spouses to choose meetings over important events, such as weddings, birthdays, anniversaries, or anything else that may conflict with their agendas. MLM leaders show no remorse as they become more demanding of a prospect or member's time, and they will use a combination of "love-bombing" and passive-aggressive threats to make a spouse choose MLM over the other option. Eventually, the MLM will create a scenario, commonly referred to as an ultimatum, in which a spouse will have to choose between their marriage and the MLM "business". This is usually one of the final steps before complete indoctrination and the slow destruction of everything an MLM prospect or member had.

MLMs are also financially draining as they require a consistent monthly fee to continue to participate. Note, the FTC specifically says pay-to-play schemes are illegal, which is why MLMs have carefully disguised this fee as products, tools, services, meetings, seminars, and occasionally a membership. The MLMs require a minimum monthly purchase of some or all of these categories, or a MLM member may not continue to qualify for bonuses and their "businesses" could be dismantled assuming they have "downline" members. These categories can be expensive, and as many as 99% of MLM members may not generate enough revenue from their "businesses" to cover these monthly fees. This causes a tremendous strain on marriages as one of the two spouses could sink thousands of dollars into this "business" while forcing the other spouse to cover the losses, or worse, could force both spouses into debt and ruin their finances and credit. This process will continue until there is no money left or the MLM participant voluntarily leaves.

MLM and marriage is a particularly special topic because it effects one of our most sacred pillars of society. There are very few relatable subjects across all borders, but marriage is something everyone can relate to and understand. This is why MLMs, being responsible for the destruction of relationships and marriage, continues to be written about regularly.

The first blog I ever read, "Married to an Ambot", is designed around the misery of being committed to a person that chooses "Amway" over their marriage. Luckily, they have a happy ending. "Joe Cool", the author of "Amway - The Dream or the Scheme?", was engaged when he was in "Amway", and he too walked away from the "business" after they challenged him to choose between the two.  I also was presented with the ultimatum from an "Amway" Emerald, and he told me, "The business works better when you are with someone that is also in the business, you may want to reconsider your relationship", I chose my relationship. Even though these three examples all reflect good decision making, they should not be treated as a regular outcome, and even though these three examples are about "Amway" (because apparently the "American Way" is to promote separation and divorce), there can be examples found across all MLMs.

Here are some tips to help prevent MLM from destroying your relationship or marriage:

1. Listen to your spouse. This person agreed, usually in front of a large group, to be there for you no matter what. Ask why they think MLM is the answer, and then suggest an alternative in a positive or uplifting fashion. Do not ridicule them, they aren't your puppy.

2. Treat your spouse kindly. Usually, MLM is appealing because the spouse is receiving "love-bombing". You can provide this as well, in a constructive way, and then encourage your spouse to do more research about the "business".

3. Have your spouse talk to someone with business acumen about the "opportunity". This won't be effective unless the spouse is actually willing to listen, and could backfire if they are already indoctrinated. They have to be ready to listen to what a business person has to say, and not be defensive with their programmed rebuttals.

4. Do not send an ultimatum. Ultimatums almost never have the anticipated result, and usually cause the person to vehemently reject your option. Nobody wants to be forced into a corner, especially someone that thinks they are doing what is best for the family.

5. Remove your spouse from the routine. Often, people find themselves in a rut, and life just seems strangely more difficult and frustrating. Take some time away from everything, then come back and approach the situation with a clear head and fresh eyes. You will be amazed at how much less dreary things seem you step away for a short period.

Thursday, January 4, 2018

MLM and Appeal to Consequences Fallacy

Today's blog post is about a frequently used piece of rhetoric by MLMers, "If MLM is illegal, then why hasn't it been shut down?". This line falls under the category of the appeal to consequences fallacy, which suggests something must be legitimate if it hasn't been abolished. This type of logic assumes an undefined conclusion is causation for the current state in which something operates, which can be true, but usually needs to be supported by other conditions. In other words, this type of logic can only be used as support for a position and not as definitive proof.

An example of the failure in this logic would be the case of Bernie Madoff. He operated an illegal Ponzi scheme for decades, but by this logic, it was deemed legitimate until he was shut down. This is problematic, because the fallacy suggests his "business" was not a problem until law enforcement got involved, which is inherently untrue as things don't transform from legitimate to illegitimate because of a lawsuit. A lawsuit is designed as a means to determine if the "business" has been legitimate or not, and then passes a judgment based on the findings.

MLMs have regularly been in the crosshairs of the FTC, and many have been successfully shut down. This presents a second issue with the logic, because MLMs that have had legal action brought against them, have had some sort of consequence from each judgment. A recent example is "Herbalife", which was investigated by the FTC and had to settle the case by paying a $200 million dollar fine. The idea that a company would be legitimate, and have to pay a substantial fine to victims, creates a problematic situation for this logic. If "Herbalife" had been operating legitimately, then the case would not have produced this type of result, and "Herbalife" would have continued to operate the same way. However, "Herbalife" was found to have significant issues within the compensation plan and was forced to restructure in the United States.

Here is what former FTC chair, Edith Ramirez, had to say about Herbalife:

“This settlement will require Herbalife to fundamentally restructure its business so that participants are rewarded for what they sell, not how many people they recruit,” FTC Chairwoman Ramirez said. “Herbalife is going to have to start operating legitimately, making only truthful claims about how much money its members are likely to make, and it will have to compensate consumers for the losses they have suffered as a result of what we charge are unfair and deceptive practices.”

Some of the other MLMs that have been shut down are, "Burnlounge", "WakeUpNow", "Fortune Hi-Tech Marketing", "Monavie", "Five Star Auto Club", "ZeekRewards", and many many more.

The idea that a particular MLM is operating legitimately, specifically because it hasn't been shut down, is more about luck, and less about operating within the guidelines of the law. Unfortunately, the FTC has yet to make a case against all "businesses" operating as MLMs, but that isn't to say it won't happen in the future. As of now, any MLM that has had litigation brought against them, has either settled or been shut down.

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Sources: 

https://www.ftc.gov/news-events/press-releases/2016/07/herbalife-will-restructure-its-multi-level-marketing-operations

https://onlinemlmcommunity.com/list-of-defunct-shut-down-and-out-of-business-mlm-companies/