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Utah and Get-Rich-Quick Schemes

What's the deal with all the MLMs (Multi Level Marketing) in Utah? Seriously folks, we were all making fun of MLMs ten years ago, why are people still starting them up even today? It's like people who still have mullets even after pop-culture beat the daylights out of the dead horse of making fun of mullets. People with mullets today are either trying to be ironic, hate themselves, or have been living under a rock for a decade.

Now there's an idea - starting an MLM as a joke. An MLM to make fun of all the other MLMs. Nah, it's already old news. It's already passe - it's already time to move on to the next thing to make fun of.

So why the obsession with Pyramid Schemes (Yes, that's what they are)? I really want to know. First Nu-Skin - okay, a reasonable success, then Noni- another big one - and now everyone - like Goyin - wants to jump on board. I've litterally met people who have good business ideas, but they always want to try to find a way to back them into a pyramid scheme somehow. I don't think the model is great for plumbers and donut shops.

Pyramid schemes just pray on the weak and stupid. Not to say the people up top are stupid, but the people on the bottom certainly are - and many of them fail and go broke trying to start up one of these businesses. You can't have a system where everyone is making tons of money, there have to be the rotting carcasses of failed distributors under your feet. If you join an MLM company, chances are you'll stay at the bottom. If you're considering getting rich in a pyramid scheme, you might also be interested in a career as an astronaut or NBA allstar.

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Additional information added by Editors - 11/01/2007:

A lot of people go into debt falling into get rich quick schemes. Most people get into debt because of credit cards. The average American homeowner has between 10-$15,000 in credit card debt! People see credit card applications as an application for free money and don't realize it has to be paid back. Visa cards are one of the biggest card distributors in the world. Your best bet would be to get a low interest credit card and to use it for only emergencies, although 0 credit cards is the best situation.

Get it right, sam-i-am

Nu Skin is not a pyramid scheme (which indeed is illegal). Just like Avon, Amway, Pampered Chef or numerous types of MLMs (like Tahitian Noni), Nu Skin is a legitimate business which functions as an MLM. It actually sells and distributes product, just not generally in brick and mortar stores, but rather through an independent distributor force. It is also a publicly traded company, and if it were a pyramid scheme, it would not be publicly traded. You may not like MLMs (I don't care for them myself), but don't misinform people about them. MLMs may have slightly different business models (even from each other: Nu Skin is set up differently from Avon, for example), but companies like Nu Skin and Tahitian Noni are legitimate.
If you want to learn more about what a pyramid scheme is, check this link out:
http://en.wikipedia.org/wiki/Pyramid_scheme

Blame it on Genetics

Okay, so it's not exactly genetics, but its a word derived from genetics and that is called "genealogy." The whole idea of replicating yourself is not new. It goes all the way back to Adam and Eve. (This is a little tongue-in-cheek here, but bear with me.) This cultural mindset is very predominant with the predominant religion here in Utah and elsewhere. I mean, multiplying yourself to get more work done has been around for ages. I think that may be why my parents had so many children! They could put us to work weeding the garden, taking out the garbage, cleaning the bathroom and other chores they didn't want to do themselves. Then, you've got in the predominant religion the highly successful use of the principle of delegation. Isn't that what you do in Multi-leveling? You get other people to do your work. You get a percentage of the profits that you help the people above you make. The huge difference is that the Lord has a better payoff system, way better! Add to that the counsel for mothers to stay in the home with their children, and you've got all these MLMs that pander to stay-at-home mothers. Make a few dollars on the side running a business from the comfort of your own home while your husband brings in the bulk of the income by going out working a daytime job. Finally, you have the idea that you must recruit people by personal contacting, referrals and other methods. (In our day of extremes and litigation, I personally don't recommend door-to-door contacts.) Doesn't this recruiting sound a lot like missionary work?

One huge issue I have with multi-level marketing business models is how often so many "recruiters" fill potential "recruitees" with dreams of quickly dispensing their time-clock punching jobs for the ultimate freedom of working their own hours, when and how much.

The stark reality is that building a business, any business, takes a lot of time and effort if you want to get into the small percentile that become profitable and endure past the first few months or couple of years. It is unrealistic to think that I can work at something a "few" hours a week and become highly successful at it, whether that's building a personal long-term relationship, playing a musical instrument or a number of other things.

To be fair, I must say that there are people in MLMs that do become financially independent. However, let all be sufficiently instructed and informed that they took a lot of effort to get there.

Movie Content Review using LDS standards
http://ldsreviews4movies.wordpress.com (BLOG)

it's the "business idea"

I've been 'self-employed' now for a few years. I've had a few companies, some small, some a bit bigger (the main one I currently own). I always get a kick out of the whole idea of MLM's being "independent business owners." Yes, they can certainly classify themselves as such, but there are some inherent differences between someone involved in an MLM and a 'standard' small business owner. I don't think I need to spell all of them out. However, I would have to say to anyone wanting to start an MLM, you aren't as "free" as you might think. You are more tied to a company than most franchise owners of 'regular' companies would be (example: A Dairy Queen or McDonalds owner being tied to the main franchise corporation). Members of MLM's are just one step outside of being an employee, and are really just independent contractors (and they are taxed as such).

To anyone wanting to get into an MLM/Network Marketing company, I would say steer clear and start something else on your own. Do something simple: lawncare, office cleaning, sno-shack, ebay business, amazon.com business. Maybe just find a simple and popular product, find out how to get it straight from the factor (don't get shafted by going through a 'wholesaler') and sell it somehow.

There are ways to find success that produce better success than any MLM will give.

a local company adds to the issue

After reading Sam-i-am's recent article on the MLM craze, it got me thinking about a local Provo company that is helping to fuel this whole thing here in Utah and around the U.S. The company is called MXM (MX Marketing, or MXM Marketing), and claims to help people who want to run an MLM/Network Marketing "business" be successful. I even worked for them at one time (very briefly) as they were paying pretty high ($18 per hour), despite the fact we were still students. It didn't last long, and of the dozen 'marketing agents' they hired, all but one either quit or was fired within 2-3 weeks. I left after a promised paycheck wasn't distributed. When I finally received a check for the specified amount I went to cash the check and found it was a bogus check! Luckily I went straight to the bank they were using and tried to cash it rather than deposit it in my own bank account at another bank and allow it to bounce.

Anyway, to get to the point - this company has these "marketing agents" that work on the concept of building "downlevels" in groups of 3 until a huge "network" or "Matrix" is created. When I left they were focusing on Young Living, and Freelife as their two main MLM's to build. I honestly did meet a few people who were quite successful in both, and really were making several thousand dollars per month, but it was not a result of MXM Marketing efforts, but their own. However, the majority (98%) were failing. This company MXM Marketing would charge their customers $50 per month for their services, and another $50 to get setup. They promised to build downlines and make the person succesful by getting residual income from these MLM companies. I left before I saw much success for anyone. MXM Marketing can't keep employees long enough to help any of their clients.

The concept was 'ok' though it did have its flaws. Mainly the problem was more in the issues with the MLM companies and the dishonesty that is so abundant in the upper management. Then another big issue was actually with the owner of MXM. The company president lacks basic management skills and has never kept employees for more than a few months. If someone else were running the company it might be successful, but I don't think that will happen, so it's destined to fail. I recommend people to stay away from MLM's and specifically companies like MXM to build their "business."

it happens too much

i'm tired of roomates and friends bugging me to try out their new business ideas. Usually these ideas surround some Multi level marketing thing. I am all about small business and people trying to find success. However I don't see much success with anyone doing the Multi Level marketing thing.

And speaking of this other company MXM, I have a roomate who worked for them and never got paid. Any company that doesn't pay their employees should never still be in business. This was like 2 years ago, so I'm supprised they're still around.

yep he's a crook

great info mr. business guru. I knew this guy was a crook, but that file points it out very nicely. I hope people can see this whole message about MLM's, and especially MXM to see that they need to stay away from that shady business.

watch out for this company

this company is a scam and the owner dave griffiths is a crook. Check out this website and look under mxm and griffiths, dave. http://www.dcp.utah.gov/enforcement/BuyerBeware.pdf

If you actually were

If you actually were successful in one, you'd think a little differently. It is, yes, hard work... but so is the work of minimum wage. It requires support, teamwork and leadership. Of course not everyone will become financially independent. But, those who work for it & don't quit as majority do, profit dearly. Unfortunately the statistics include those who quit or fail tirelessly because they don't follow the proven business model that works & is usually handed to them. The "people at the top" can't be successful unless they help others do the same. A lot of people don't get in to MLMs to "get rich".... but they do desire to make extra income. It cracks me up at the ignorance out there. In defense, I would like to make note that I see countless people come out of fore closures, debt, etc from MLM, but not necessarily become wealthy. Given the right ingredients, it's anyone's game. People fail to realize that their CEOs, Presidents, Founders, etc all make more money than them and those people are content working as an employee and paying extreme amounts of taxes. MLMs are for those who are serious about building a business with low capital and for those who enjoy the products or services. Unfortunately, there are a lot of desparate people out there who manipulate the system and prey on the weak, and yes, stupid. But, don't discredit it or be a hater. In this business, we make money .... or make excuses.

Sam-i-am Statement

Maybe sam-i-am should educate himself before making such an ignorant statement.
I have helped many many people make a lot of money in the Network marketing Industry.
I'm sure Sam is a wonderful Person but shurly should do his research.

www.wehaveapurpose.com

A Balanced Opinion on MLMs vs. Corporate Business

True MLM's are not for everyone. Specifically they are not for people who think they are going to "get rick quick" by sitting on their butts, buying some product (read any product) monthly and call a few peeps and off they go making money. No, it takes a little more effort than that. But, the other truth is that 40% of millionaires in the US made their fortunes from MLM's, and that's not a small number. It's also why Warren Buffett purchased Pampered Chef and why Trump is polishing up an old company and slapping his name on it in hopes of reviving a dead product line with his brand. Obviously getting in early while the buzz is hot or the hype is there helps anyone joining any MLM, but once the company or the product has reached saturation, it's definitely a harder road to travel. Will everyone succeed at making money in MLM's? No, not usually, because most people don't give it 100% and they don't give it long enough to build. But, if you do apply yourself to anything you do, you can make money and MLM's can work for you. It's about finding the right product, the right leadership (preferably outside Utah or Florida) and most of all the right timing.

Look, it's no different than the people who started with Yahoo or Google when they first started. They are the multi-billionaires at the "top of the corporate pyramid" with the most stock, salary, etc. Then you have the newer employees, who took less risk, coming in and making their salaries and perks and being happy with the "leftovers" at the bottom of the pyramid. Truthfully, all corporations have your CEO's and SVP's making bank and the assistants and managers who don't doing all the grunt work. The difference with the MLM industry at least is everyone has the same chance of making money if they apply themselves and get in at a good time regardless of education, race, religion or gender. Whereas with corporate business, you're only going to make millions as a rule if you have a decent pedigree (education) to get hired or have that one in a million business or invention that you have enough money to put behind - aka long shot.

So, as much as MLM's get a bad rap, I think for some they are the only way for them to make any money and utilize their marketing or sales skills at least among their social network to get some kind of business going for themselves where they can't get fired by someone and they have the same chance as everyone else in the company assuming the compensation plan is fair and the timing of the product is right.

Like anything, there are pros and cons and ultimately there are always winners and losers in business. I believe that a company uses MLM structure to ensure steady sales growth through monthly volume sales that replicate through word of mouth advertising. They can spend millions at an ad firm to sell their product, but they choose normal people and pay them instead.

MXM Marketing still scamming

Beware of MXM. It has been 2 years since the previous posts and David Griffiths is at it again. There are many employees and past employees who haven't been paid. This man and his company are clearly dishonest and crooks!

MXM did the same to my spouse

He worked there for 6 mo so months, and they immediately fired him when he demanded his backpay owed or said he would otherwise file a wage claim form. They still haven't paid. We're possibly close to homelessness with 2 small children due to this crooked business. I have no idea how Mr. Griffiths sleeps at night.

Possible Class Action suit against David Griffiths?

There are clearly many past and current employees of David Griffiths who have never been paid. Current employees haven't been paid since the middle of October. According to the Utah Labor Commission this is classed as "criminal activity". It is time for David Griffiths to be held accountable. I am calling for any employees who have not been paid to come forward. Make a claim with the Utah Labor Commission. Are you aware that there is also a 5% penalty, per day, for late paychecks? I think that beyond this, we need to group together and start a class action suit. Even though Mr. Griffiths has not paid his current employees since October, and is giving the excuse that he is waiting additional funding through a new investor, MXM just opened a new call center in Lehi with multiple new employees on December 4th. This clearly proves that the funding is there. Call the Utah Labor Commission at (801) 524-5675. Use the name directory and find Kevin Hunt. He is handling our case. He is interested in anyone else who has not been paid, and specifically in any violations in pay under minimum wage or overtime pay.

I just quit MXM today

I have worked for MXm for about 2 months now and have not gotten paid sense the 5th of November. David told us all last week that we were going to have a check by monday(today), well still no check and it's the same story that it has been for the last month. people who are employed there are being evicted from their homes and having they're vehicles repossed. The company has a good concept but i still see no one getting money. David is a joke he barely even comes in to work anymore and never speaks with us face to face it's always through email. I am on the verge wof being evicted from my home and he still has nothing to say. many employees have either Quit or been fired and still have not recieved their checks. please something needs to happen while the company is still in business. get ahold of gephardt and i will as well and let's see if we can get something done about this wrong thing that david is doing. please

My Name is Terra J. and you can reach me through email at terra_spanky@hotmail.com

MXM owner info

Here is a way to contact David Griffiths to ask for your pay check:

http://www.facebook.com/pages/MXM/216361550470?ref=mf#/profile.php?ref=sgm&id=1149213609

MXM is at it again with another product line

MXM is now pushing eXfuze as an MLM op. David Griffiths and Larry Bosh are still at it in Utah out of the Orem office.

Not only are they still at it but now they have screwed up peoples downlines in eXfuze as well. MXM can't seem to get anything straight.

And yes, Larry Bosh is part of the company!! Google his name and you will see that he is facing prison time for his part in a very large Ponzi scheme!!