An example of a high-profile multi-level marketing company defending its practices is Herbalife Ltd., a manufacturer and distributor of weight-loss and nutritional products with more than 500,000 distributors. Although the FTC had been investigating Herbalife, it was activist investor William Ackman who shed a national spotlight on the company by shorting $1 billion of the company’s stock in 2013. Ackman accused the company of operating a pyramid scheme and backed his allegations with a bet the company’s stock price would fall under the weight of the scam.
That figure may be low because LuLaRoe products used to be so hard to return. For a long time, angry customers couldn’t send back faulty products directly to LuLaRoe: They had to return them to the consultant they purchased them from. Customers are instructed to hand-wash leggings inside out and air-dry them, but that hasn’t stopped the company from getting sued by angry consultants alleging that the leggings are poor quality. Some LuLaRoe retailers have even taken to fat-shaming customers, telling them if the leggings rip, it’s their fault.
Keep in mind that legitimate businesses will not promise you wealth beyond your wildest dreams, because most network marketers don’t come close to achieving the picture-perfect lifestyle of lavish houses and luxury cars guaranteed by some network marketing companies. While a handful achieve millionaire status, it’s far more common to end up spending more than one makes. Most network marketing people fall somewhere in between, carving out a modest income of a few hundred dollars a month—fine as a supplemental income, but not enough to live on.
With its anti-wrinkle cream and other products, Jeunesse promises to reverse the signs of aging, if temporarily. Jeunesse also sells products to reduce mental distraction, provide nutrition on the go, and help people lose weight. The company’s impressive live demos and message of remaining forever young have placed them on Inc.’s list of fastest-growing American companies.
But if you understand how traditional direct selling used to work before MLMs, you’ll see that they really aren’t in the direct sales biz. If your grandpa sold encyclopedias door-to-door when he was in college, ask him if he was required to buy the encyclopedia sets himself in order to sell them to others. Ask him if he had to personally purchase a certain number of encyclopedias a month or year to keep his job. And then ask him if he was pressured to recruit more salesmen beneath him. The answer to all of those questions will be no. He didn’t make any money recruiting people to be salesmen — he made his money selling encyclopedias to housewives.
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Despite the many states that have legalized some or all forms of marijuana, federally the U.S. Drug Enforcement Administration (DEA) continues to classify CBD as a Schedule I drug. Schedule I drugs are defined by the DEA as "drugs with no currently accepted medical use and a high potential for abuse." This is how not just CBD, but the entire cannabis plant is classified.
CBD is derived by growing cannabis, drying it out, pulverizing it, and then, often, using a rotary evaporator filled with an ethanol solvent to extract the CBD. (There are some other methods, but the ethanol one is common.) It’s a pretty old and fairly low-tech technique, but it’s effective. What you end up with is, hopefully, about 99 percent pure CBD in the form of white powder, which is called CBD isolate. (Some CBD is billed as “full spectrum,” which means it contains other things from the cannabis plant, like a bunch of other cannabinoids, but there’s no formal definition for full spectrum.)
In 1959, two employees of Nutrilite, Rick de Vos and Jan van Andel, founded their own company: Amway. Amway was created using the MLM organizational structure and paved the way for MLM companies to be established in other countries like Canada, the United Kingdom, Australia, Germany, and France. Amway allowed for companies like Panasonic, Palmolive, and MasterCard to include network marketing in their omnichannel marketing strategies. Amway's success has even led them sponsor an NBA arena, the Orlando Magic's Amway Center (and the older Amway Arena), since 1989.
So, many of CBD's popularized benefits aren't well-proven. But are there any harms in trying CBD-containing products? In a word, yes. While any reported side effects from CBD alone are minor (think dry mouth and dizziness), they can be serious if the CBD products interact with other medications, experts say. Since CBD is metabolized by the same enzyme in the liver that metabolizes many conventional medicines and supplements, the chemical can cause the levels of other drugs in the system to rise; in some cases – like for those taking a drug to prevent their bodies from rejecting a donor organ – to a deadly level, Tishler says.
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She reiterated a common theme I heard throughout the interviews. “If you treat it like a hobby it won’t pay you like a business.” She also acknowledged that, in spite of her success, she doesn’t sit around eating bonbons every day waiting for residual checks to hit the mailbox. “That’s a common misconception,” she said. “I work hard at my business every day, although it doesn't always feel like work. Similar to other entrepreneurs who profit from their passion, she says “It’s rewarding because I found a product that has made in difference in how I look and feel… and I love selling it and helping other people start a business.”
I thought maybe I would give CBD a try to help with some issues I have been having for quite awhile such as lower back pain, headaches, and trouble sleeping. After only two days of using 1ml morning and night of the 500mg I noticed a big change in how I felt. Now that I am almost a month into using I know that it really does work. I sleep so much better and have a far greater amount of energy every day. Also, my back pain isn’t near what it used. I feel great. I highly recommend giving this stuff a try.
Rhonda Adams also swears by network marketing. In 2001, after leaving her job as a technical sales analyst for a telecommunications software company, the 32-year-old Chicago resident was introduced to Warm Spirit, an Exeter, New Hampshire-based beauty and wellness company that sells nature-based skincare products and other beauty aids for women and men. Adams paid $500 for the initial starter kit, products, and office supplies and began working the business.
Anyone who tells you anything definitive about what CBD — or THC, for that matter — does to your body is lying. Nobody knows. The legitimate research out there is extremely limited, and the slow drip of legalization — medical use, then personal use, federally illegal but permitted by certain states and cities — has made it incredibly hard for researchers to do their jobs.
During one study, 10 healthy male participants took just one 600 mg dose of CBD oil. Their resting blood pressure went down successfully. These same men were then put on stress tests. These tests were specifically designed to raise blood pressure. After taking the same dose of CBD, the men yielded positive results. Their blood pressure was lower than it normally would be in these stressful situations. Most scientists agreed that CBD lowers blood pressure because of its ability to help reduce anxiety and stress.
But many people can’t recruit enough folks and they end up spending a lot of their own money. As Laryea points out, “Recruits are often expected to purchase ‘starter kits’ or inventory to start selling products, which also earn the recruiters (and the recruiters’ recruiter) commission. Thus, multilevel marketing as a business strategy incentivizes participants to grow a sales network underneath them, also called a downline.”
I’ve heard all the arguments. “How can it be a pyramid scheme if it’s legal?” Through some crafty loopholes. The fact that there is an actual product to sell allows them to operate and give the appearance of legitimacy. “You just haven’t found a good MLM yet.” Wrong. A good MLM is an oxymoron. “But how is this any different from any other major corporation where the CEO makes the most money?” Because the people below the CEO at legit companies get paid salaries and have actual benefits. They don’t depend on endless chains of recruiting new members.
The first wave of MLMs were the likes of Avon, which was founded in 1886, and used the door-to-door model for selling perfume. From then and up until the middle of the last century, many women did not have the means to sample products and shop at a department store — or, in the case of African American women, they were simply not allowed to enter the store at all. And they certainly didn’t have the means to start their own business and earn a real income.
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A 2018 poll of 1,049 MLM sellers across various companies found that most sellers make less than the equivalent of 70 cents an hour. Nearly 20 percent of those polled never made a sale, and nearly 60 percent earned less than $500 in sales over the past five years. Nearly 32 percent of those polled acquired credit card debt to finance their MLM involvement.
Fed the fantasy of achieving the all-elusive American dream, many of them are being wooed by multilevel-marketing companies. Known as MLMs (or “direct-sales”), the current US administration is stocked with their cheerleaders: Betsy DeVos, the secretary of education, is married to a cofounder of Amway; Ben Carson is a spokesperson for a vitamin MLM called Mannatech; and president Donald Trump used to have an MLM, Trump Network, and was a spokesperson for another.
CBD (Cannabidiol) is a potent, non-psychoactive cannabinoid found in hemp oil. It is typically extracted from industrial hemp plants that are naturally high in CBD and other phytochemicals. It is the most prevalent of over 80 different cannabinoids found in natural hemp. It is commonly used for its therapeutic properties. Cannabidiol is responsible for a wide-range of positive health benefits through its interaction with the body's own endocannabinoid system.
In his book, According to Kotler, Paul Kotler defined this subject as follows: "Multilevel marketing (also called network marketing), describes systems in which companies contract with individuals to sell a set of products door to door or office to office. It is called multilevel because a contractor can also invite others to work and earn money on their performance." The sales representative thus has incentives to enlarge the sales force and to earn added commissions on the sales of his or her recruits.
“One of the unique facets of this business is that the victims are also perpetrators,” Brooks says, speaking generally of MLMs. “You’re trained to recruit your friends and family and neighbors.” He points out that when you onboard someone underneath you, especially if they live in your town or are in your friendship group, you are essentially creating a competitor. It’s as if you open a Subway sandwich shop and then encourage your neighbor to open a Subway right next door—and everyone is already sick of sandwiches.
“Multi-level marketing is one form of direct selling, and refers to a business model in which a company distributes products through a network of distributors who earn income from their own retail sales of the product and from retail sales made by the distributors’ direct and indirect recruits. Because they earn a commission from the sales their recruits make, each member in the MLM network has an incentive to continue recruiting additional sales representatives into their ‘downlines.'”
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Hi Lupus Mom, I actually teamed up with this brand because it was one of the brand’s I had already used on my own. This article does have affiliate links in it, however. Today I use two different brands of CBD. One is Koi, peppermint flavor, and the other is from my NY dispensary and is part of the legal medical marijuana program here in New York. Superior is still an incredible brand, though it does have herbs in it that some people found they cannot take depending on their medication. Other brands such as Koi or CW Hemp do not contain herbs, if you are looking for something with less ingredients. Hope this helps! XO Marisa
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