Monday, March 26, 2018

MLM and Style Over Substance Fallacy

Today's blog post is about confidence people utilizing their superficial appearance to portray themselves as a credible source. The way in which people dress is the most effective method for creating a version of themselves they want others to see. This technique is specifically designed to disarm potential skepticism by appearing to be a point of authority. MLMers regularly transform themselves by wearing a specific garb people associate with success, which helps them pitch their "business opportunity" more successfully. They will also insist that other MLMers dress in formal attire at meetings and seminars, because the illusion of success must be flawless in order to attract new members.

MLMers regularly use gimmicks, such as videos of mansions and super cars, to substantiate their appearance of success. These videos are not valuable for investing in the "business opportunity", since they do not have anything to do with the actual idea or how a person will make money. The focus on hype and results is designed to obfuscate the reality of the MLM, which is a near 100% failure rate, and to give people the illusion that this is something they can attain.

Another trick MLMers use is "love-bombing", which is designed to deceive potential investors into thinking the MLMers care about their well-being. Instead of explaining the "business opportunity", the MLMer will focus on specific emotional needs or wants of the potential recruit. They may listen to personal stories, use physical contact (such as hugs), or do a host of other activities that make the potential recruit feel special."Love-bombing", is a particularly effective red herring on younger individuals, especially since they will be the least skeptical of ulterior motives.

The most important part of investing is the idea, not the way in which the idea is presented. Sure, it helps to look a certain way, have a certain amount of energy and passion, and be well-spoken, but if your idea is bad, then no savvy investor will care. Television shows, such as "Shark Tank" and "Dragons' Den", are fantastic references for showing how to handle opportunities that are presented from convincing actors.

Here is a video from "Dragons' Den" in which a person tries to pitch "Lyoness":

12 comments:

  1. The panel in the Dragons' Den saw immediately that this was just another MLM Amway clone, involving small rebates on purchases, and a system of recruiting others.

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    1. Anonymous --

      Yes, these "Dragons" have probably been pitched this stupid scam over a hundred times in a hundred different ways. I appreciate the fact that the lady on the panel let him continue to make an ass out of himself while pitching the scheme. That was worth more than Kevin and Robert immediately condemning him.

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  2. The "style over substance" preference is a major problem throughout modern society, and not just in these MLM rackets.

    At scholarly conferences, I have heard criticism of speakers because they were not stylishly or fashionably dressed when they delivered their talks.

    I have heard writers criticized because they did not wear certain types of "approved" shoes or suits.

    I have heard of persons not being invited to dinners or parties because the host did not like their taste in jewelry, or their style of make-up.

    In other words, the superficial mentality of a brainless teenage high-school girl has now become a generalized attitude among adults who should know better. Persons not tricked out in expensive designer clothes and accessories are considered stupid and low-class. Your friends make fun of you if you aren't wearing the "right" make of sneaker.

    When society becomes as shallow and as brainless as this, then you can't blame the MLMs for following suit.

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    1. Anonymous --

      I agree, this is an epidemic of modern society. I too have been chastised for certain superficial appearances, and therefore my points were discredited. This problem needs to be addressed at an early stage of life, preferably in the form of a debate class in grade school and then regularly reiterated throughout the upper levels of education.

      I don't agree with your last point. I don't believe the two go together, and in a way it justifies MLMs for using subterfuge. Regardless of society's lack of awareness for context, MLMs using these psychological tricks is not acceptable. I also believe MLMs would use this deceit, regardless of whether people were critically aware or not, because deceit is the only way to attract members. I'm sure we can find common ground in the idea that MLMs would use deceit regardless, because if any MLM explained their "opportunity" and the typical results accurately, they would have disappeared long ago.

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  3. You're right -- nothing justifies cheating and deception. And MLMs cannot live without some kind of fraud and lying.

    All I'm saying is that we live in a mindlessly superficial society, where unimportant things like clothing and hairstyles and cosmetics and outward appearance have become the touchstones of judgment. It's appallingly shallow and degrading.

    If you think you can judge someone's ideas from the fact that he wears wing-tip shoes, or a woman's character from the fact that her accessories don't match, then you are a hopeless idiot. But unfortunately more and more people actually make judgments based on stuff like this.

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    1. Anonymous --

      I believe this problem stems from the American value system. There is a significant problem with how we judge success and worth. A person that drives a Lamborghini and lives in a 10 bedroom estate is regarded as far more valuable than someone that drives a Toyota and lives in a 3 bedroom town home. This is incredibly flawed as each individual should have the same intrinsic value.

      I believe this value system continues to be enforced through a series of institutionalized courses until it becomes a subconscious part of every American's being. There are very few courses that teach people how to be morally good and to treat others as individuals based on their character instead of their creed and class. Also, there are very few classes that teach people a successful life is not determined by the amount of money you make and toys you get, but rather by contributing to society in a productive manner and to be involved in the needs of the community. Heck, I was raised under the impression that life was about getting good grades, going to college, getting a career that pays a substantial salary, and then focus on others. My father used to ask me how I would make my million, as though that was the most important thing, instead of focusing on how I would lead a fulfilled life and be happy and healthy. The problem is you can't have the latter without the former in most cases. You need to make a certain amount of money, or you probably won't be able to survive and be a productive participant in the community. This blog is a rare example of a way in which I can contribute without overhead.

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  4. They have the appearance of success but I suspect that even diamonds live check to check. The majority of a diamond's income comes in the form of an annual bonus, thus a diamond's monthly income might be very small, perhaps $5000 or $6000 a month gross income.

    It is very unlikely that diamonds are buying homes and other big ticket items in cash.

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    1. Joe --

      I agree, most diamonds are not at the upper echelon in those videos, but they still act as though they are doing incredibly well. They show videos reflecting the lifestyles of basketball players, and those guys go broke making multiple 8 figure salaries. It's very frustrating and something that should be treated more harshly by the FTC as a violation of their code.

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  5. Your bitterness over your Amway experience clearly shows.
    It is professional to dress appropriately for a business meeting whether in Corporate America or in an MLM, so to assume there is subterfuge happening, because someone dresses in a manner that is warranted by the situation is silly. Would it appease you if the same presenter dressed in jeans for an MLM presentation, yet in a power suit for a Corporate business meeting? Sometimes a suit is just a suit.
    The presenter on the Dragons Den gave a terrible presentation. He was not well spoken and clearly not prepared. I am not sure why he actually needed that much money, but what I understood from his terrible explanation, is that people make money based on what the distributors spend with these cards. Any MLM that makes the bulk of their money from their distributors and not actual customers is a scam. There are many MLMs around which make money selling to customers.

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    1. Anonymous --

      I didn't even mention Amway in this post. I'm guessing you are going through my entire blog and writing angry responses due to my success in stopping someone from joining your MLM. Thank you for the compliment.

      You said, "Your bitterness over your Amway experience clearly shows."

      Nice ad hominem. That will really go far on this platform.

      You said, "It is professional to dress appropriately for a business meeting whether in Corporate America or in an MLM, so to assume there is subterfuge happening, because someone dresses in a manner that is warranted by the situation is silly."

      Actually, it is "silly" in insinuate that MLMs host "business meetings". These "business meetings" should actually be described as slimy sales pitches. They use the formal attire as a means to an end. Their attire is designed as subterfuge to convey a sense of success and authority on business, not to be professional. Yet, their actual success is effectively 0%. To conflate an actual business meeting with an MLM presentation is disingenuous.

      You said, "Would it appease you if the same presenter dressed in jeans for an MLM presentation, yet in a power suit for a Corporate business meeting?"

      No, what would "appease" me is if MLM didn't exist anymore.

      You said, "Sometimes a suit is just a suit."

      This isn't one of those times.

      You said, "The presenter on the Dragons Den gave a terrible presentation. He was not well spoken and clearly not prepared."

      I agree. Yet that has nothing to do with the fact that MLM, in general, is a fraud.

      You said, "I am not sure why he actually needed that much money, but what I understood from his terrible explanation, is that people make money based on what the distributors spend with these cards."

      Wrong. They make money signing people up to use the cards. He probably asked for that money so he could put it in his pocket.

      You said, "Any MLM that makes the bulk of their money from their distributors and not actual customers is a scam."

      Wow! Finally, something we can agree upon. The problem is, no MLM has ever been able to distinguish between a customer and a distributor in their statements AND they continuously try to pass legislation which obfuscates the two. They are going out of their way to make it confusing, because they are a fraud.

      You said, "There are many MLMs around which make money selling to customers."

      How incredibly vague. I dare you to name one. To date, nobody has been able to identify this mythical MLM, and yet you are saying there are many. This drivel is completely worthless.


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    3. Anonymous said, "Wow- more personal attacks=defection."

      Wow, more useless comments from a bitter MLMer.

      Anonymous said, "Your entire blog is made up of innuendo."

      I don't think you even know what innuendo means.

      Anonymous said, "'Slimy business meeting' are an opinion, not fact.

      If you are going to quote me, at least get the quote correct. I said they are, "Slimy sales pitches".

      Yes, it is an opinion. I'm not sure why you keep harping on this.

      Anonymous said, "If someone wants to read your blog, see it as truth and not join my team, that is their choice, because we all have Free Will."

      Aha! We have finally found the sore point, which I guessed earlier, and now we can understand where the vitriol is coming from. I'm glad to see my blog is doing its job. Thank you for confirming my efforts aren't in vain.

      Anonymous said, "People need to hold themselves accountable and stop pointing fingers, that is what is wrong with our country."

      I couldn't agree more, and I can't wait to see you hold yourself accountable for being part of a scam. I can't wait for you to hold yourself accountable for the damage you have done to your friends and family. I can't wait to see you apologize for all of the BS you have been saying.

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