Agel Review|What Eric Worre and Randy Gage Forgot To Tell You About Agel
76The Agel Phenomenon.. Fact or Fiction?
Agel Review
In the year of 2004 Glen Jensen had a brilliant idea , and as the saying goes Agel was born.
Glen Jensen had over eighteen years worth of network marketing experience under his belt and was a true visionary . He began in customer service, moved on to international sales and later to the executive suite, working his way through the Agel ranks. Glen was known as an innovator and someone who could see a better way to improve on whatever was put in place before he arrived.
He came up with the idea to replace and improve on what other supplement producing companies were doing by replacing the traditional tablet form with gel. He asked the question, What if supplements could be packed inside of gel and all the nutrition locked away and easily digested?
That's how the Suspension Gel Technology was born and Agel came into being in 2004.
 | Amazon Price: $8.63 List Price: $16.00 |
 | Amazon Price: $8.52 List Price: $15.00 |
 | Amazon Price: $2.99 |
 | Amazon Price: $9.89 List Price: $16.00 |
 | How to Become Filthy, Stinking Rich Through Network Marketing: Without Alienating Friends and Family Amazon Price: $11.24 List Price: $19.95 |
The Agel Opportunity
Agel combined a new innovative network marketing model with a passion for developing its gel based product.
The Agel opportunity is now seen as one of the leading multi level marketing models in the home based business industry. Agel continues to grow rapidly, with its leading team of marketers and networkers taking the business across the globe. For a small few this has become lifechanging and here's why.
Randy Gage - talking inspiration and vision
The Agel Comp Plan
The Agel Comp Plan offers expense allowances, travel award funds, team volume commissions, matching bonuses, and if that is not enough to wet your appetite then, Agel offers a car fund to cover your travel costs every month if you can hit the sales targets.
You can earn $35 if you bring someone into Agel at the 'Personal Pack' level while if you get someone to go in at the 'Executive Pack' level with Agel you can receive as much as $200 for your efforts. The Executive Pack is certainly where the money is to be earned and the backbone of Agel's marketing system and product distribution plan.
The Agel compensation plan was put together to merge the best parts of a few different mlm models,providing front end commissions and back end residual incomes. Agel produced what it called the Quadra-Plan, an innovative and some would argue unique model. For those that understand MLM compensation plans this is amongst the best and consequently a few big hitters were brought into the Agel team on the back of it.
A Few of The Agel players
Eric Worre
Eric Worre is a long time network marketer with a track record of success in and out of the MLM world. He has made millions of dollars in the MLM business and also had success with his own company prior to entering the MLM world.
Randy Gage
Randy Gage is the American success story, from dishwasher to multi-millionaire. Randy is one of the biggest names in the industry and known for his straight talking approach to multi level marketing.
Chanida Puranaputra
Chanida has spent 15 plus years in the MLM industry, and most of that time has been spent in top leadership positions with different MLM companies. Chanida started with Agel in April 2007 and is reputed to have brought a big part of her team with her, allowing her to hit top spot in record time.
Ann Feinstein
Ann Feinstein and her husband, David, have been in the industry since 1987, and over those 18 years built a global organization across 13 countries with over 100,000 team members. They have been building a business with Agel for four years.
The Agel Questions and Answers
How long has Agel been in business?
Agel Enterprises, started in March of 2005. The first products shipped a couple of months later, in May, 2005.
How old do you have to be to be an Agel team member?
18 years of age is the minimum age to become an Agel Team Member.
Can you use Agel in your website domain name, or e-mail address?
No. Like a lot of MLM companies Agel has a strict set of procedures that you have to work with.
Can you build your own website to run your Agel?
Yes, so long as the Agel logo or product photography isn't on the site and Agel isnt in the URL, and you sell Agels products as per the company Policies and Procedures. Agel also offer self-replicating websites to Team Members at a fee, as do many other MLM businesses but in truth these are less than successful and simply generate an added income for the company.
Can you use advertising and promotion to build your Agel business?
Agel prefer you to build your business in a network marketing way, that is speaking to friends and family and people you know. Advertising is allowed but the use of company photos isn't so if you're considering building an online empire with Agel in this way then think again.
Can Agel Work For You?
Agel Enterprizes offers one of the best MLM models out there and is clearly generating some big earnings for a small number of people who got in early and are able to build massive businesses based on a network of worldwide distributors. To earn $3000 a month or anywhere near that kind of income then here's the model you will need to put in place...
You will need to bring in somewhere near to 650 people into your team of distributors. This can be done and a few will achieve this over time but with the high percentage of failures in traditional network marketing the odds are stacked against the vast majority of people. In reality, less than 3% of networkers will find success and financial freedom with the Agel business. Now, where do you see yourself?
Is Agel a Scam?
Agel is not a scam. It is like a lot of multi level marketing business models, which promise a lot and for most people deliver very little. It will create wealth for a very small number of committed, skilled and dedicated business builders over a number of years but for the majority it will be an uphill battle and for the most become an expensive hobby. In reality it seems that a large number of Agel distributors have become disillusioned with Agel and departed; the latest and most notable being Eric Worre.
The bottom line is this...
Agel Enterprises has a unique gel based supplement product and a small handful of leaders who are making a good living moving the business across the globe on the back of an army of Agel distributors building the Agel enterprizes empire. Will they all reap the rewards? No, probably not, but a few will.
Network marketing is a tough business to be in at times and Agel is not the answer to your prayers all on its own.
Building a big business and enjoying the rewards that brings takes time and dedication and the traditional MLM model can mean painfully slow growth in your business if you don't have a system to follow that results in growth for you and your team.Whatever multi level marketing business you choose to get started with, Agel or any other, be sure to start out the right way with a simple system that teaches you and your team how to reach your goals.
Whatever MLM business you choose to build your future with, you will need the right support, training and system in place to help you reach your goals...
Read more about network marketing on this hub
Thanks for visiting and leaving a comment..
Of course it is a scam. The pitch which people are trained to give is full of lies, distortions, half-truths and misinformation. I know because I was deceived into attending one, and since then have taken an interest in this manipulative and dangerous phenomenon. The simple fact that at least 97% of people will lose their money (not to mention their time) is the key one. And those 3% or fewer who do not lose their money will only make money through having convinced a large number of other people to lose theirs.
It sounds as though you were one of the victims Bobby - I know there are a lot of people out there who go into MLM opportunities on the promise of some kind of get rich quick opportunity but the truth is that nothing works like that in the real world.
I don't actually agree with you that Agel is a scam, although I do agree very few will make the kind of money they expect or hope for - the product is real and the income stream offered to those who market it is also real enough, so no scam as such but a lot of skilled marketing and ongoing advertising is needed which means work,time and money to be successful in this kind of business and a large part of that 97% you talk about dont have these things in ample supply.
The MLM model is a tough one though - and there are better ways to earn a living online.
The product is real only in the sense that it does exist. However, the product is entirely tangential to the scheme, and despite the totally unfounded and evidence-free (other than meaningless self-certified) claims of effectiveness, the fact remains that these legalised pyramid schemes tend to stick to "health supplements" because over the US these are unregulated.
These companies make me livid because they prey on people's desperation, hopes, fears, and needs in order to relieve them of they money. They operate in very similar ways to sects. As I mentioned, if you are one of the few that does not lose their money, it will only be because you have managed to convince a larger number of people to lose theirs. And I would not be able to sleep at night were this the case.
Thanks for dropping back in to comment Bobby.
MLM business models range from dog food, holiday clubs, investment plans to cosmetics and household products, not just health products although a number of the most popularly known are indeed health related/supplements etc...
Some companies (Melaleuca for example) have produced extensive research to back up what you describe as unfounded and self certified claims and rightly so - its important that people who buy in to supplements for example from companies like Proctor and Gamble realise their limited capabilities compared to other products on the market (sold at times by network marketing companies like Melaleuca, Agel, Trivita, Usana)..
Whatever way you look at it the MLM model allows average people the opportunity to build their own income from home - some will acquire the skills to do this well - planning, budgeting, monitoring and modifying the business and marketing plan - others will not and will lose money through lack of knowledge (which in truth the companies themselves do not impart)..
If anyone is considering starting a business from home the MLM model is one option - not the best not the worst - but it will suit some and not others - its a sales and marketing model and sales and marketing isn't for everyone Bobby.
What I would say though is simply this.. if you are looking at earning a second or even primary income from home through the MLM model then do your research into the company, its products and the people you will be working with before jumping in with both feet.
No, I do not agree. MLM is a bogus business model because it almost without exception simply recycles money within the members of the group. Which in reality means it pushes it up the chain. Only if a significant amount of money (in reality the vast majority) comes from people outside the scheme can it be described as a business. And in MLM schemes recruitment of new scheme members is always given far more emphasis than selling the products, which I maintain are almost invariably either entirely useless or monumentally over-priced, and totally tangential to the scheme itself. This is why MLM schemes are in fact simply cosmetically tarted-up pyramid schemes.
As I mentioned in my past post, in MLM schemes, the only way you will be part of the 3% who do not lose their money (in fact your chances are even lower as those who make money were the founders) is if you convince even more people to lose theirs. Unethical on every level.
That's your opinion Bobby - which you are entitled to and which I have no intention of trying to change.
What I would say though is that as a consumer living within a capitalist economy you must realise that every product is priced above its actual value - whether sold through a shop, on the street or via a "home business/MLM" model.
That's how people make money - a product is produced in India or China for a few cents - shipped to the US and sold for several dollars at WallMart every day - some of these products are good and some very bad quality. Does that make the owners of WallMart crooks because they are running some kind of over priced sales and marketing scheme (some would say yes I guess)?
Here is the thing - take Melaleuca as an example (I do not build a business with this company but I know the business model/products and compensation plan)..
This company costs $25 to set up in business.
You purchase naturally derived household products every month to the sum of $60 or so - bathroom products, washing detergent that doesn't damage the environment quite so much and if you chose to other household products and personal items. The monthly purchase allows you as a customer to promote the "business" to friends etc (this does not work - but that's not the point).. for that you can earn commissions and an income back for your efforts...
Now, because this is a MLM model the commissions earned go down 7 levels and here is how melaleuca manage that system..
$60 worth of products
$30 actual cost to produce the products (approx)
The remaining $30 is split between 7 customers at 7% each (49%) in total as a reward for their customer loyalty and the remainder to Melaleuca. 51% going back to the company to cover their costs and profit margins. Now..
Compare that to WallMart
$60 worth of products
$30 actual costs to produce the products
100% profit goes back to WallMart.
Which is the fair business model?
Which is ethical?
Business is business as the saying goes Bobby - some will profit from it and others will help those few to profit from it. You can chose to shop at WallMart as long as you wish and pretend you are not helping the rich to get richer and the 1% to retain 99% of the wealth or you can step outside of your comfort zone - meet a few likeminded people who understand the nature of free enterprize and are willing to try to build an income of their own through the MLM model.
Well, I am not sure that there is much more to be said, I think I have made my points. The only additional thing I have to say in response to your last post is that of course I know that retail prices are significantly higher than production costs, I was not referring to that comparison. I was making the point that the "products" sold through MLM are massively over-priced even compared to retail prices of standard products which are subject to normal competitive processes, tests, authentication and quality control.
I believe that if you looked into this in more detail you would see that (like retail shops) there are some MLM companies with over priced products and others with well priced and indeed cheap products.
I have looked at this extensively and can comment on what I know to be the case. I agree with you that Agel products are indeed over priced compared to high street vitamins/supplements but there are other companies producing goods in this market who are very competitive and arguably offer better price and product.
As for tests, authentification and quality control - that's a whole different hub which I'll gladly write at some point. If you believe that the big pharma companies who license products to fight disease and illness do so without profit in mind then you are mistaken Bobby.
Hi Neil and Bobby. Interesting discussion going on here! I learned long ago that you can show two people the same thing and they see something different. Some people 'get' MLM and some don't.
Regarding the Agel pitch being full of lies and distortion: Top agel exec Eric Worre teaches people that in MLM (done properly for 10-15 hrs pw) you should allow 1 year to become profitable, 3 years to replace your current income, and 5 years plus to become a true full time pro. If the pitch Bobby received was different from that it was most likely because of an unprofessional distributor and not down to the company. MLM companies have strict guidelines to adhere to regarding misleading presentations. All figures you see on any MLM comp plan have to be actual figures and not made up ones or they could be in trouble with the regulators.
It's true that many MLM products seem expensive, but in most cases (like Agels) they can't be compared with shop bought products because they are unique. I've seen lots of life changing results in people using products from a host of different MLM's.
Agel also has a very low monthly requirement compared to many MLM's. Not many businesses where you can earn 'big' money (and lots of people do) can be run for $120 per month.
It always seems strange to me that many people who have worked in a job for 20+ years to make a minimal wage suddenly expect to be making that same amount 'per month' from their MLM business within 6 months! When they don't they start screaming 'scam!'
If you start an MLM business with realistic expectations, learn the business well, take time to improve your communication skills, and spend a lot of time developing yourself you may have a good chance of success.
Regards to you both,
Mark Hibbitts
MLM Professional
Mark,
Thanks for dropping by. I agree, few people are prepared to offer a reasonable length of time in order to build their business and far too many join a company, say all the right things and then drop out within weeks or months because the big pay days don't arrive soon enough.
I disagree about the so called scam. Agel is not a scam. People like Randy and Eric Worre are honest, hard working guys and they want you to succeed. I know it is difficult and hard to succeed (I am not as succeful as I want to be yet) but you have to be patient, work hard, don't see it like a hobby and meanwhile earn your living somewhere else. Then success will be there.
Regards
Stella
Interesting discusion. MLM companies are being shut down these days on a regular basis for sharp practice and quite rightly so. What I think is being overlooked however is that MLM is a valid business model and has existed and acknowegeded as such for decades. Pyramid schemes are illeagal in the states and most of Europe. Anyone invoved will be prosecuted. Companies such as hebalife,NuSkin,MaryKay etc, etc, may take umbrige with some of bobbies comments. Everyone is entitled to their own opinion but consider how many business's went bankrupt in the US and UK last year before banding around the 97/3 stat (anyone actually know where this came from, seems to be a marketing ploy to poach disillustioned MLM ers) The point of MLM done properly is that it gives anyone a chance for a start up cost of around a couple of hundred bucks. Excuuse me if I dont feel any sympathy for someone who thinks they will be an instant millionare with no previous business or marketing experience. Try telling that to someone who sold the farm to open a "real business" and found themselves queing at the soup kitchen 6 months later and living in a tent. OK Bobby maybe you got taken for a grand or two, put it down to experience and direct your talents somewhere more profitable
I hadn't passed by here for a while so did not see the follow-up to the debate.
Fundamentally, no, it is not a viable or valid business model, other than as a means for unethical scammers to fleece the gullible. Ian, I almost resent the suggestion that I was taken for a grand or two, my loss was an afternoon with a sheister who was abusing his position in a leading business school to bamboozle those without his level of statistical or analytical ability. I most certainly did nit sign up, nor would I ever. I am not incensed through my own financial loss, I am incensed that in 2010 this can still happen to people. But then Bernard Madoff showed us that this can happen at all levels of society, wealth is no insurance.
It was not one rogue person, the presentation materials used were the official Agel ones, and were so transparently deceitful that it was shocking. When I challenged what had been presented at the end, at all levels from macro to micro, there was nothing that he could say other than the patronising "not getting it" which was also used above, from him and his placed people in the audience. I assure you I "get it" and, with the highly developed sense of justice that I have, am still livid that people are expoited and, when it comes to it, robbed in this way. Robbed semi-willingly, maybe, along the lines of the American tourists who get sold London Bridge, but robbed nonetheless.
I urge anyone reading this who is being tempted by the sales story of Agel or other such MLM scam schemes to seriously think about what is being claimed, and to assess the inherent internal contradictions in what you are being told. It doesn't work, it can't work, and it never will, however much they try to place the blame for it not working on you. You don't want to lose your time, money, friends and family. You'd almost be better off with the Moonies (almost...).
Bobby,
Good to hear from you. I have to say I enjoy reading your comments, even if I may not totally agree with them...
Life's all about opinions after all!
... this Agel review seems to attract a few interesting ones for sure.
I apologize if I have offended you. My main point about MLM being a viable business model is one that definitely deserves more debate and there is no doubt that there are many companies in the industry that prey on vulnerable people. The point I was trying to put across is that in today’s economic climate a legitimate MLM company is a way for an individual who wishes to start their own business with limited finances and business acumen to have a chance of success. I wholehearted agree that any company MLM or otherwise that make unrealistic claims should be shut down and prosecuted and there is now legislation in place to ensure that such “shysters” will find it a lot more difficult to operate. As far as Agel I am afraid you do not” get it” they are a company who has been operating successfully for 5 years and are a member of The Direct Selling Association and have received praise for their success in 2010 from Network Marketing Business Journal, American Business Awards Committee and various other business publications so I suggest some more research on your part before making unfounded comments and linking Agel with Bernard Madoff which is frankly absurd. Please contact the hundreds of thousands who have lost their life savings, jobs, pensions and suggest a viable alternative. The Moonies perhaps?
really believed in The Peoples Network now I know that he was not the only one involved but He and Jeff were the marketers and the Leadership behind it it was a good concept but everything just fell apart and she was left with a Sat Dish she could not use and anyway.....I know that this is old news but I get so tired of seeing people called success because the know how to make money If you can't take care of the people you used to get there then to me you are NOT a success you are just a lot of talk.
But in a world where smoke and mirrors rule where as long as I look good and can Cover My butt then it's all good.
I may not be a millionaire yet but I try to keep honest but I understand how things happen cause I still owe my mom too. LOL
You don't have to post this but I just was his name and this whole el nino of emotions just resurfaced cause she was really hurt by that and here she is still struggling and He's being taouted as some greart millionaire if that is TRUE and it's not just paper...Then you should be able to gi=ve myMOM here $795 dollars back.
Thank you.
Dan
P.S. Either a million dollars is nothing now days or people are just greedy!
adzman,
You've lost me completely but happy to post your comment!
who is this idiot...totally clueless on MLM i have made a 6 figue income for 15 yrs with MLM guess i was the lucky one....everyone makes money from people who would spend 4.oo for a cup of coffee millions do
Tony
Feel free to join the list of confusing statements...
Ian, you read the forbes sometimes? 5th most trustworthy mid cap companies in the US: Nu Skin Enterprises. Try Vitality when it's out in january. I know some women who love mary kay's products, but people like you might prefer to spend their money on l'oreal investors. Fine but dont condemn regular people who make money with selling products that other other people want to buy. You can never force a person to buy anything.
correction about the retail price, i deliver retail stores and all put a mark up of min. 200%
i worked in a spa - eg cost of 1 creme 1.7 gbp, we sold it for 17 gbp. The owner of course got all the profit. The more clients bought the richer one person only got.
I ve invested couple of thousands in a store without knowing if and when i ll recover this initial cost. You NEVER have to invest money in an mlm business, at least with some of them you dont. it is not about mlm, some people are just better off being emplyees. that s fine cause we also need these kind of people. We need teachers,doctors, bankers, busdrivers etc...
The bad thing is time flies, the good thing is you are the pilot. thanx for the tips on mlm.
Is GBGMulit-vitamins.com A business that promotes a Forced Pay Matrix a company you would build on?
Regards Ivan
Ivan - I haven't heard of the company and they don't appear to have much of a company presence online so right now I would avoid jumping onboard until they have some proof behind them.
Just a simple question: how many members do Agel have worldwide ? How may Agel members have achieved financial success in Agel like Randy, Chanika, etc ? Can I say that less than one percent achieve success like the above persons worldwide whereas the remaining 99 percent have failed and lost their investment so as to make the Agel company pay for the bonuses of these smart and smooth-talking one percent (which include their Ferrari and Bentley supercars as bonus)
1-Since MLM is a business - people like Bobby should not quote stats in a vacuum- meaning - compare them to other
business models and their success or profit rates.
2- on the other side Adzman main point is Eric Worre says he has made millions but how much was made on companies that went under, at the cost of the distributors - TPN being one - he made money while many were left in the hole at the companies demise. Worre was an officer/owner which is way different than only a distributor. Greg Olsen his partner had lead several companies that went under yet somehow he made millions. That type of story plagues MLM and is very close to what Madoff did.
MLM is not for everybody right Chris?
I agree with you Justin.
Thanks for visiting and leaving a comment.
apple computers are not for everyone either. Your perception is your reality and nothing anyone can say will change that. For those that believe in the MLM business model and persist, they can make significant incomes and forget about what the rest of the world thinks.
I have to start off by saying, I have always been a skeptic when it came to network marketing. I thought there's no way this is for real and even if it is, it's very limited. I didn't hear of Agel until just recently. Some very good friends of mine (not related) that I've know for years started with the company and everyone thought, it would not work. With much persistence and patience they stuck it out and accomplished GREAT SUCCESS within the first few years!!!! They are now enjoying 20-40K per MONTH to live on. Until I personally saw and heard of this, I never thought it was true!!! All I can say to all the skeptics like me is Don't believe in the impossible! This is not a scam and is very real!!! I am so excited for them and believe so much now myself that I am going to start very soon! You should too!
Scott - I'm always a little sceptical myself when someone tells this kind of story - my friends are earning blah, blah... no proof of income claims and apart from this, you then go on to say that you are really excited and going to join "soon" .. come on buddy, if you're friends are earning $40,000 per month and you are so convinced it works.. why wait?
Reports are that Worre has left Agel.
Could this be another pump and dump that happens so often in the MLM industry ?
I hadn't heard that Frank so can't comment on whether or not that's true but if so, it would seem like another story of another leader jumping ship to cash in followed by his team of eager shipmates..
@ Scott: I heard Eric Worre Left Agel too... who knows though, it could just be a random rumor, and it could be very true.
Agel is definitely not a scam, although it wouldn't be my top choice either; but I do love MLM.
Yes it is true that Eric has started with our company called SendOutCards. And I agree that there are a lot of so-called "gurus" in the industry that jump ship. I've known several Diamonds that left Amway and moved their entire team over to MonAvie and became a success story overnight. That's what happens when they take their entire team over with them. Eric has only been in his new venture for a few weeks but recently went to the top of the latest "challenge" - That's what happens when they take their last group along with them to the new company.
Pete - thanks for the clarification.
Sendoutcards is probably one of the few MLM companies that will be around a while ; Eric Worre may not be (at least not with SOC).. either way, good luck to him; he knows the business and realises money is made by moving your downline every couple of years into the next BIG thing ;-)
Your welcome Neil, and I totally agree I have seen it lots of times that it happens that way. Just happened to find this site and noticed some interesting comments being made.
Isn't it amazing that most people don't realize that what we do is a viable business model. Even Donald Trump, Warren Buffett and others approve of our business model and some even own MLM companies.
Thanks for the comment Peter - I haven't yet reviewed SOC but if I do, be sure to leave comment ;-)
Hey Neil,
I have been viewing the comments here about Eric.. Yes it is true he has joined SOC. I am sure he will build fast with his downline and other friends he will bring with him. Not sure where he stands in the latest 'challenge' as the standings are not yet posted. I also heard that Randy Gage has started with a new company.
I've found that the people who call MLM companies a scam are usually the ones that want to sign up this week and become millionaires by next week and when they find out that they have to WORK in order to earn money, they can't handle the reality that they are LAZY so they just call it a scam.
No, Cynthia, the ones who call MLM a scam are mostly those who can understand simple fundamental mathematics and have at least a basic sense of logic. That is to say people who were never scammed in the first place, although there will indeed be people who learned the hard way as well.
MLM is by definition unstable, by definition something that will rob the vast majority of people of their time and money no matter how hard they work it, and by definition a scam. It is fundamentally no different to a Ponzi scheme, it just dodges the illegality by attaching some random "product" to itself, ideally with some unproven and unprovable implausible miracle health claims.
If you would like to understand the logic behind why it cannot work try the following article. There are others, but this puts it pretty clesrly:
http://skeptoid.com/episodes/4176
It doesn't work, it can't work, and the only way you will be one of the less than 1% who do not lose their money is by convincing even more people to lose theirs. You probably won't do that, and if you do you should not be able to sleep at night through guilt.
I guess the MLM concept really does not work!! It didn't work to the tune of about 100 Billion Dollars last year.
Oh and NetWORK Marketing. That's why they call it that- It takes WORK. Work a little make a little, work a lot make a lot.
Peter, it works for some. The founders. Just not for the victims below. It only takes a basic grasp of mathematics and logic, or an empirical analysis of its functioning, to understand why not. That should be enough to see why it does not work.
Or if even that is too complex, a quick look at the actual outcomes.
• The nonprofit Consumer Awareness Institute analyzed available data published by the MLM companies themselves. Of the companies surveyed, they reported the least successful was Amway/Quixtar where 99.99% of distributors lose money, and the most successful was Herbalife, where 99.42% of distributors lose money.
•They also surveyed 200 tax preparers in three counties in Idaho and Utah, where 6% of residents are active network marketing participants. From over 300,000 tax returns, not a single one reported significant profits from network marketing activities.
•In a Wisconsin lawsuit, the tax returns of the top 200 of 20,000 network marketing participants were examined by the Attorney General. The average income of this top 1% was -$900.
•Newsweek found that fewer than 1% of MonaVie distributors ever qualified for any commission at all, and less than 1 in 1,000 recovered the cost of their required monthly purchases
One final statistic: On average, 99.95% of network marketers lose money. However, only 97.14% of Las Vegas gamblers lose money by placing everything on a single number at roulette, with a significant payout if you win. So, instead of losing your time and your friends on a pyramid scam, go on, pick a number...
Thanks for the ongoing conversation guys...
Bobby, I think you have made a valid point in saying that most people (the vast majority) will not make any money from MLM (indeed many will lose money). In my experience, this is due to a number of factors (not just the company or product or cost) and it will continue to produce the same or similar results.
This doesn't make the MLM model unprofitable though. Like any business (and this is a business), real skills are needed to operate a successful business and see sustained growth and income. Knowledge of basic accounting practises for one but also marketing and advertising.
What tends to happen is that companies and many distributors rely on the friends and family (three foot rule) model to "duplicate" growth. This is proven NOT to work (from your figures and my experience) and only duplicates failure.
With a knowledge of marketing and other basic business building skills anyone (and I mean anyone) can build a successful network marketing or MLM business.
But Neil, the issue is that there is no emphasis on selling outside the pyramid, to people outside the organisation. The emphasis is on recruiting new people and selling to them, and to the people they themselves will in theory recruit. For as long as almost all sales are insider sales, then by definition there is only the same money circulating inside, which in reality means upwards. Which is why only the founders are the ones who can really make money. Those further down the chain will not make money, not because they are lazy or incompetent, but because that is the whole basis of the system.
You have conceded that the vast majority of people will lose their money, but as significantly as you state it, it still does not do justice to the figures, which are that the worst MLM has a 99.99% rate of those who lose their money, while the best has a rate of 99.42%. Those few who make money are the founders.
If anyone is still reading this, don't do it. Don't waste your money on something that is designed to rip you off. Don't waste your time, which is precious. And don't lose your friends and family, who will increasingly avoid you and your messianic sales spiel as you push your latest pyramid scheme. If you have the entrepreneurial spirit, don't waste it on these schemes. Set up in business, make and/or sell a real product or service, put your energies into something with at least a chance of success.
Bobby - I won't go over old ground with this debate as it will only continue to show that you and I and everyone else who does read this thread (and many will) all have their own opinions and neither you nor I will change that.
People will follow their own path and for some that will be building a business using the MLM model with a company who they believe will offer them a good product and compensation for their efforts and others will do so (or try to do so) in other ways, selling other products or services in whatever way they can.
Either way, some will fail and some will make it.
What you and I can agree on I think is that no business is ever built on the back of family and friends; not MLM and not any other business.
When chosing to take that first step as an entrepreneur my advice would be simple; do your research first and be sure you have a market with hungry buyers in place. Find the best product you can to sell to that market and acquire the correct knowledge to get in front of your marketplace when they are ready to buy - learn to do this well and you will build a great business, MLM, Affiliate Marketing, Brick and Mortar or any other business model.
The bottom line is this; make up your own mind and once it's made up make a choice to succeed and not fail.
WOW! This Bobby fellow has been cracking me up! His mind is so closed its hilarious. Talking to him is like talking to someone whose drunk. No matter how much proof or evidence is shown to a drunk they just won't understand. They will do whatever they want. Thanks for the laughs Bobby! we love ya
Hey Jeffrey - glad to keep you entertained my friend! ;-)
Jeffrey, I am afraid it is you indicating a closed, unanalytical mind immune to evidence, rational thought and data. I have demonstrated clearly why this and other MLMs and pyramid schemes are by definition, and quite deliberately, manipulative, deceitful and ultimately fraudulent. I think an inability to see it is due to the fact that mathematics and statistics are so woefully ignored in modern school systems.
I only hope that you realise this for yourself before you either lose your own money or, even worse, convince some others to lose theirs. Remember, 99.7% of people lose their money in these schemes, and the 0.3% who don't are the original fraudsters and confidence tricksters. This is not something that can be fixed, or can be different with one scheme or another. It is inherent in the system.
MLM schemes are often described as being like sects, and I am convinced that this is an accurate characterisation.
welcome back Bobby! Haven't heard from you in a while.. hope all is well with you.
The figures you've offered above are not entirely accurate - although less than 5% make the big money in MLM, this is in part due to the majority being customers and not business builders. 95% is made up of another 5-10% of business builders (not making any real money and some in fact losing money) and 80-85% customers buying products - this is the MLM model, it's about distribution of product to a consumer base after all.
If sects are used to describe a group of people with a shared belief system, then I'd agree with you - MLM is a belief system. If you dont understand or believe in the business model it will never work for you - as many have proven.
Neil
Thanks for the welcoming back.
The figures I quoted are indeed accurate. I posted this above, but as it could get lost in the myriad of posts and counter posts, it is worth repeating:
• The nonprofit Consumer Awareness Institute analyzed available data published by the MLM companies themselves. Of the companies surveyed, they reported the least successful was Amway/Quixtar where 99.99% of distributors lose money, and the most successful was Herbalife, where 99.42% of distributors lose money.
•They also surveyed 200 tax preparers in three counties in Idaho and Utah, where 6% of residents are active network marketing participants. From over 300,000 tax returns, not a single one reported significant profits from network marketing activities.
•In a Wisconsin lawsuit, the tax returns of the top 200 of 20,000 network marketing participants were examined by the Attorney General. The average income of this top 1% was -$900. [Note from Bobby, just think about that for a moment, digest it fully!]
•Newsweek found that fewer than 1% of MonaVie distributors ever qualified for any commission at all, and less than 1 in 1,000 recovered the cost of their required monthly purchases
As I have previously described, it does not work and it cannot work, by definition. It is pure and simple a scam, a confidence trick, using the same techniqiues as religions and cults, It is just like any other pyramid scheme but with a random product loosely attached to ward off the police. Even so, the legal system does seem finally to be catching up with these fraudsters.
Bobby - I remember an old college lecturer of mine many years back telling me that statistics are often produced by a specific group of people to defend or propose a specific viewpoint and can at times be read from very different angles dependent upon need.
I don't doubt the statistics have been produced above but I would question the reading of those same stats.
The Wisconsin lawsuit for example is clearly what many would see as good accounting - i.e. showing a low level of actual earnings to avoid income tax. This is exactly what I would do (hyperthetically speaking) if it was the case that my home business generated a good level of income - something I would not put in print as you will appreciate.
There are some MLM models which will never work for the masses, I agree and these depend more on luck and position/timing etc than effort but there are also many good MLM/network marketing programmes out there that do work - I know from experience they do.
This has been interesting reading. I love a good strong debate. Here is my two cents...I have been doing business with a network marketing company for about 11 yrs. This Febuary I hit the $1 million mark in total commissions personally earned. So I guess I'm...lucky? I am not an owner, I did not get in first..I did look at the compensation plan to make sure it was viable and straight forward, and I did outside research on the products offered. Once I made the decision to "join" this company, I followed the system set forth. I did not approach any of my family or friends. I just listen to people to see if what my company had to offer would meet their needs...and I sell to outside customers...And just incase my comments look vague..because I haven't named my company..I will if you want me to. I just didn't want this to apprear to be a recruiting tactic. I just wanted to add a success story to the debate. Network marketing works for a lot of people who are willing to acquire the skills to make it work.
Terri - great to hear of your success and also the manner in which you've gone about it. Feel free to connect with me on Facebook, I'd love to hear more ;-)
Terri, the answer to your question depends on what is involved in making money with the scheme in which you participate.
If it simply selling products to others, with no emphasis on recruting people below you, then fine, it is simply a sales tool. Not one I personally love, but fair enough, there is no deception and I see no ethical issues with it. There do not seem to be too many of these schemes though.
However, if it is the standard MLM pyramid-type scheme, along the lines of Agel, then the answer to your question is rather less positive. No, it is not that you have been lucky, it is simply that in order not to lose your money, and indeed to make money for yourself, you have convinced even more people, probably a large number, to lose theirs. I do not think I could live with myself if that was how I had made money.
This is one of the points I have been making above. Join one of these schemes and you will almost certainly (well over 99% chance) lose your money. The only way you will be one of the tiny minority who do not lose their money is by convincing large numbers of other people to lose theirs.
Hi Bobbie and the rest of the commentaries.
I am not affiliated with Agel but I am a MLM business owner. Prior to deciding to start a MLM business I have been self employed for almost 40 years having employees and buildings and overhead and all the problems that go with a small business.
I did my homework before deciding to join a network marketing business including reading Robert Kiyosaki's books,(most of them), as to why he calls Network Marketing the Business of the 21 Century,; reading and listening to Warren Buffett's books and interviews on investment and why he owns and promotes network marketing businesses; reading Donald Trump's books, (not all but several) and his reasons for owning network marketing companies; talking to several of my friends who are middle size business owners, (usually making in excess of $10m per year) and doing my due diligence in investigating the company I chose.
I consider that this business system is the most powerful system for creating wealth that there is unless one is a super star entertainer or athlete, or unless they are the very rare Bill Gates type person.
I would love to have a serious 1 on 1 with Bobbie as to the merits of MLM vs any other business model.
Prince Phrog - Thank you for your input. I've been having a one to one with Bobby for over a year and can tell you the conversation has been interesting but I doubt you will change his mind ;-)
Hmrjmr1 Level 3 Commenter 2 years ago
Good Advice.