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05-05-2005, 04:18 PM
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Member
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Join Date: Apr 2005
Location: New Jersey
Posts: 76
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How do they make their money???
I'm always intrigued by these folks that put out posts saying "no selling, no inventory, just sit back and collect money". I'd really like to know more about how exactly they make their money. For me, I'm very proud of my products and feel good about sharing them with others.
You have to know that "if it's too good to be true, it probably is!"
Ginger
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05-08-2005, 09:09 AM
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Senior Member
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Join Date: Mar 2005
Location: Texas
Posts: 178
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Re: How do they make their money???
Ginger,
That's easy. They make their money by suckering poor people who are desparate to make quick cash. When you feel you are at the end of your ropes, you don't always stop to think whether this is really to good to be true. Your like wow, this will bale me and my family out of this horrible situation were in and so they jump. Just like the crappy very illegal chain letters people keep posting on here. Theirs a saying something about a sucker being born every minute. Its more like life kicking you in your teeth, people lose their jobs, fall on hardship for one reason or another and they look for a quick fix.
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05-09-2005, 07:27 AM
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Member
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Join Date: Apr 2005
Location: New Jersey
Posts: 76
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Re: How do they make their money???
Abrinaus,
So, how do you really feel?
I agree ... if I'm investigating an online opportunity, I won't even look at or consider those that don't tell you straight up front what their product is and what you do to make money. There are some sites you can read and search all over, and until you give them your name, email addy, snail mail addy and phone number, they won't even tell you ANY specific information about how they make money.
Again, I have to say, if I'm not involved in showing and selling a product you're proud of (whether it's jewelry, cosmetics, long-distance service, whatever), then I couldn't sleep with myself at night.
Ginger

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05-17-2005, 02:28 PM
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Member
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Join Date: Mar 2005
Posts: 31
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Re: How do they make their money???
I am so glad that I am not the only one who is not easily fooled by all the hoopla these type of companies spew out. I totally agree that they never tell you exactly what it is that they do, but they promise to make you richer than your wildest dream all with no "hard work". Yeah Right!!!
Anyway , I pray that people read this post and see that a lot of those companies are hype and "hype" is how they get rich and the people who sign up for the companies get poorer.
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05-26-2005, 08:17 PM
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Member
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Join Date: Oct 2004
Posts: 38
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Re: How do they make their money???
Wow, ladies. It seems as though you may have had a bad experience. I totally agree... you’ve really got to watch what’s out there. There are people trying to scam anybody these day. That is why it is so important to really check every opportunity out, before invest ANY money in it!
On the other hand, I will admit to being one on those “people” who post with “no selling and no inventory”, and I feel that I am being completely honest. Any business takes hard work and dedication, so I’ve never stated “just sit back and let the money roll in”. So… let me give you a brief insight on the company that I proudly represent. The company that I work with, I do not sell any products and there is no inventory to take up room in my closet or garage, sitting, waiting to be sold. Now don’t get me wrong…the company that I represent DOES have products. A lot of them ,over 350 and amazing ones at that!
My business is to introduce prospective customers and business minded individuals to the company and help them establish customer accounts. I simply provide them with information about the company and our products, then let them decide if it would benefit their family to shop with us. It is that simple. I’m not selling anything, am I? As for getting paid, there are many ways that we are compensated for our work. One, is a bonus for each person we help to establish an account, then we also get commission on their orders, plus, there are many other bonuses and incentives, too many to list.
As written in the company policy, a representative can not use the company name in it’s advertising, if found to be doing so, they will be terminated. We have some very strict policies. Only when I speak to someone in person, whether over the phone or face to face, may I explain to the prospect the name of the company and details of our products. Is it a scam, or too good to be true, NO! We are very large international privately owned company, based here in the USA, celebrating our 20th year in business. We are listed with the BBB with an impeccable record and have been listed in INC 500 many times. In addition, last year, we did over $600 million in sales. Not bad for not including our name in any advertising, is it?
I’m not writing this to defend all posts out there. But I do know that the one’s I recognize as being a part of this company are legitimate. It is always important to get all of the facts. If I sounds interesting to you, don’t be afraid to submit your information and talk to a real person, the opportunity could change your life, I know it did mine.
Best of luck to you all,
Lindy
www.momsathomehealthbiz.com
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05-27-2005, 12:22 AM
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Member
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Join Date: Apr 2005
Location: New Jersey
Posts: 76
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Re: How do they make their money???
But, that's kind of my point ... you ARE selling the idea of the business to them. I read an interesting article today about the difference in MLM and pyramid schemes. Basically, it boils down to whether you are selling a product (a membership is a product) or recruiting people who have to pay an entry fee (of which you get some) to join your organization.
Most MLM's have an equal balance of compensation based on your recruiting efforts versus your sales efforts. But, a company that stresses enrolling people and receiving commission on enrolling them, but not on selling the products is actually getting close to the pyramid scheme.
There is a fine balance there ... but the fact is, you are selling the idea of being a "member" of the company. Do you receive commission on recruits from their sign-up fees?
Again, just me personally, I feel like if I can't find out the company name until I've given you my contact info, I'm really not interested.
Ginger
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05-27-2005, 04:27 PM
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Member
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Join Date: Oct 2004
Posts: 38
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Re: How do they make their money???
Ginger~
If you think offering information on a company and it's products is considered selling, then I respect your opinion. Our company is similar to a wholesale company like Sam’s Club or Costco. You pay a membership fee to shop at that store for discounted prices on high quality products. If you pay a membership fee to shop at Costco or Sam‘s Club, were “sold” that membership? Or, did you make a simple decision to join there because of the great products and prices that somebody told about?
You are right about the difference between MLM and pyramid schemes. In a pyramid scheme, there are NO products or services being bought or sold. It is only money being exchanged, therefore making it illegal. Which my company is NOTHING of the sort. If you previously missed it, we have over 350 amazing PRODUCTS and SERVICES. Pardon me for being a bit heated, however it seems you are accusing my company of boarding on a scheme/scam.
I don't get any money from the membership fee. The entire $29 goes to the cost of the business kit, which includes a VHS, a DVD, a CD-Rom about 6 booklets of company information and training materials. The company kicks in a one time “Director bonus” or better known in other MLM companies, as a Fast Start” bonus for each new enrollment in addition to the monthly commission earned off of their order.
Again, if you don’t feel comfortable about giving out your information, I totally respect that. But… I think it’s wrong to implicate a work from home opportunity that doesn’t tell you up front the company name, it doesn’t mean the opportunity is a pyramid scheme or a scam. I know in my case, the company is protecting it’s integrity.
Take care.
Lindy
www.momsathomehealthbiz.com
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07-31-2005, 08:51 AM
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Junior Member
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Join Date: Jul 2005
Location: Clarksville, TN
Posts: 4
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Re: How do they make their money???
But, do you have to purchase a certain amount of the company's products every month?
Last edited by myia1202 : 08-03-2005 at 04:01 PM.
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08-02-2005, 05:41 PM
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Senior Member
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Join Date: Mar 2005
Location: Texas
Posts: 178
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Re: How do they make their money???
Ginger,
I think one of the compensations comes from purchases you make and your downline makes,etc.
Lindy,
I'm a business person. If I ask someone I am considering doing business with a question and they give me a song and dance, that raises a flag to me. I understand completely were Ginger is coming from. And the reason so many people run from that tactic is because that is Amway used to work, Quixar does it(but not surprising since they grew from Amway), Noni does it and so do a few others that I can't think of their names right now. Those companies claim they are doing it to protect their reputations. What they are really doing is hoping if they stall long enough that the prospect will cave and agree to a meeting and get so hyped at the meeting they will sign on the dotted line. Now, I am not saying any of the companies listed above are bad companies. I just do not care for that particular way of recruiting and I personally find it distasteful.
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08-19-2005, 03:53 PM
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Member
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Join Date: Apr 2005
Location: New Jersey
Posts: 76
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Re: How do they make their money???
Abrinuas,
I appreciate your point of view and professional at***ude.
I've been reading a lot of online articles about sales and home businesses and such. Amway, Quixar, Melaleuca, Prepaid Legal ... these guys have so much negative information out about them right now .... and not just people's word of mouth, but legal suits and complaints filed with the government. And, I'll believe Forbes, Wall Street Journal and Business News Weekly over someone who claims to have earned $1000 a week selling pre-paid legal. I was reading in a Forbes article that over 74% of their policies that are signed are cancelled within a year .. and the consultants selling those may have to pay back commissions from it.
I'm happy that I have a product to sell, that I believe is priced fairly and is just what it represents, nothing else.
And, by the way, if you're talking about being like Sam's or Costco, let me ask this .... what do you think their income generated from those memberships is called on their tax returns ???? SALES maybe????
I'm not trying to bash or anything ... I just hate that people are suckered into these things and really do a disservice to those of us in honest, valuable businesses.
Ginger
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