Network Marketing Industry Problems

Forbes dot com reports that the FTC has described Vemma as....

"A Pyramid Scheme That Preys On Young Adults"

....and further reports that a court froze the company's assets and appointed a temporary receiver on 21st August 2015.

Vemma affiliates are said to urge new recruits to make an initial "investment" of $500-$600 for an Affiliate Pack and then to spend a further $150 per month on Vemma products to remain eligible for bonuses and the right to enroll new affiliates with Vemma representatives visiting college campuses in order to recruit students with promises of rewards of up to $50,000 per week.

Check out the FTC's website to read more about this.

Forbes also reports that Wall Street continues to keep a close eye on publicly traded MLM businesses such as Herbalife and NuSkin.

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Well, for a few decades now, the MLM/Network Marketing Industry has been seen by a lot of people as a way out of the ordinary, to earn some extra money or to make a fortune and indeed many people have made multi million dollar/pound fortunes working with well established NM Companies worldwide.

I can think of a few names, which I'm not going to mention here but can be found by anyone who's interested enough, who have. They will no doubt evangelise that NM made them and will urge others that their only chance of doing the same is to join them in their business.

But for every single success story, there will be many thousands of others whose only experience will be of loss, frustration and maybe even anger and when you consider the example of Vemma, with their Affiliate Pack costing circa $600 and monthly autoship requirement of $150, you can understand why. Vemma is not unique in that situation with most MLM companies working on the same or similar basis.

When you consider that starting a NM business, a low level franchise or getting involved in some other direct selling opportunities has been seen as more or less the only way for Joe Bloggs to get ahead, the closing down, albeit temporarily, of an established 10 year old NM company will cause many more to consider the whole industry a scam regardless of the fact that there are some huge companies, think Avon, who operate in a similar way.

Do you think this will cause more people to think twice about starting an MLM business and if so, how are you going to capitalise on it?

If you've had some experience of the MLM industry, why not let us know who with and how it went...I had some experience with Forever Living Products about a decade ago but found the products very expensive and I couldn't get beyond that when it came to selling the products and trying to recruit others...........I lost hundreds of pounds!!

So, who did you join up with and how did it go and what are you going to do about this opportunity?

Thoughts and examples below please and, as always, thanks in advance!

Mark