Avon is an example of a company that has shifted its focus from retail sales to recruiting, starting this transition in 2000.

LuLaRoe's business practices led to legal action being taken against the company, as featured in the docuseries LuLaRich.

LuLaRoe was alleged to be a pyramid recruiting scheme.

LuLaRoe's leggings gained popularity on social media, specifically Facebook and Instagram, in the 2010s.

The MLM company considered a hybrid model is ShopToEarn, as it combines elements of traditional network marketing with other features.

According to the FTC, approximately 99% of individuals participating in multi-level marketing schemes lose money, primarily due to the requirement of purchasing products in advance with the hope of reselling them at a profit.

MLMs rely on recruiting people with promises of high income, rather than focusing on selling products to end-users.

LuLaRoe uses a multi-level marketing (MLM) business model, focusing on recruiting distributors and building a network of people rather than just selling clothing.

Avon is an example of a company that has shifted its focus from retail sales to recruiting, starting this transition in 2000.

Title:

Content: 'Direct Selling' - Avon, Tupperware - Is Extinct

Nov. 18, 2022 11:25 AM ETHLF, MED, NTCO, NUS, PRI, TUP, USNA3 Comments
Robert FitzPatrick
394 Followers

Summary

  • Direct Selling became obsolete generations ago. So how is it that millions today get recruited for "income opportunity" in "direct selling" and billions are traded on "direct selling" stocks?
  • Avon and Tupperware are cited by "multi-level marketing," or MLM, promoters as "proof" that MLM, e.g., Amway, Herbalife, is "direct selling."
  • Usable data on actual income and churn rates of MLM "direct sellers," market saturation, and retail sales to actual customers are not provided.
  • In fact, Avon and Tupperware for years have been walking dinosaurs, still trying to do "person-to-person" sales to end-users with commodity products, while MLMs hype "unlimited" income.
  • The shrunken and devolved state of Avon and Tupperware today reveals that direct selling is extinct. MLM is not, and never was, direct selling.

It is generally accepted that "direct selling" was killed off generations ago by mass merchandising, big box stores, mail-order and then the internet, among other societal changes. The "Fuller Brush man" is long gone. No one's at home. No one wants or needs or has time for a "personal" salesperson. Everything's in stores or online. And, even when "direct selling" still lived, no one ever went into that tough line of work thinking they would get rich from it.

Yet, each year, millions are recruited, and pay thousands, for the "opportunity" to work as "direct sellers," with promises and expectations of "unlimited" income. The number involved today is many, many times greater than ever worked in that "extinct" field decades ago. Billions are being traded on Wall Street for shares of "direct selling" companies. How can this be?

In my book, Ponzinomics, the Untold Story of Multi-Level Marketing, I document the death of "direct selling" and the 1945 invention of "multi-level marketing," or MLM. I describe how "MLM" falsely assumed direct selling's revered old identity. I trace MLM from its Adam, a little California-based company called "Nutrilite," to today's "industry" led by Amway, Herbalife (HLF) down 64% YTD, Nuskin (NUS) down 31%, USANA Health Sciences (USNA) down 49%, Primerica, Inc. (PRI) down 13%, and Medifast (MED) down 45%. MLM's financial solicitations for consumers to become "direct sellers" have reached into – and led to losses for – virtually every household in America.

In the newly invented "MLM," the main source of revenue shifted from end-user customers to the salespeople themselves who are incentivized to "be their own customer" by buying their own products. Obviously, no one makes money purchasing their own inventory, but MLM offered a unique reason to do so – "unlimited" income potential.

No More Need to Knock on Doors

All MLM "direct sellers" can potentially gain "unlimited" income by recruiting an "endless" chain of other "direct sellers." No need to pound the pavement and get rudely rejected at front doors any more. Each "direct seller" on the chain has to meet a quota to "qualify" for future rewards from their recruits who, in turn, are their "own customers" and recruiters too, ad infinitum. The chain can grow without continuous personal effort. The qualifying quota can usually be met by just making a personal monthly purchase of inventory. "Commissions" on all these transactions, all the way down to the "last ones in," flow up the chain. In the MLM pay plan, most of the total commissions go to the top 1%. So, all new "direct sellers" try mightily to recruit (and buy) their way to those top ranks. Of course, only a tiny few can ever be at the top.

Some people argued this is a pyramid recruiting scheme, inherently unfair and deceptive, and a counterfeit of direct selling. In the design and the pay plan, bottom ranks – the vast majority – will inevitably lose. They said constantly adding salespeople in any area destroys profitable retail selling potential, if any exists to start with. They cited data on 90-99% loss rates and huge churn rates among new "recruits" and asked, where are the retail "customers"?

While offering no data on retail customers or salespeople losses or market saturation, MLM promoters offered "proof" that MLM is direct selling by pointing to two long-established and respected direct selling companies in their ranks, Avon and Tupperware (TUP). Both companies were members of the Direct Selling Association, DSA, and both were "direct selling" icons, Avon for its "ladies" and Tupperware for its "parties." To any pyramid scheme accusations, MLM promoters indignantly countered: "Are you calling Avon and Tupperware pyramid schemes?"

Walking Dinosaurs

The truth for both companies is very different from the MLM-spin. Avon and Tupperware used to have differentiated products and real consumer demand. Their salespeople made money from their own retail sales. But moving into the 21st Century, Avon and Tupperware became walking dinosaurs, vestiges of the extinct era of "direct selling." They were still trying to base their businesses on their historical brands and on person-to-person retail sales to real customers, as direct selling companies always used to do.

Despite MLM's citing Avon and Tupperware, and thereby bestowing legitimacy on the "MLM" members of the Direct Selling Association, deep differences between those icons of the old era and MLM burst into public view in 2013-14. The two companies publicly quit the Direct Selling Association, charging ethics violations and DSA-member connections to pyramid schemes.

Avon's Long Good-Bye

Avon had been a true direct seller for decades before MLM was invented. But as the door-to-door model faded, Avon began a long decline. In 2000, Avon began shifting its focus to "incentivizing" salespeople to recruit more salespeople and getting them to buy inventory, MLM-style. In 2009, during the Great Recession, Avon ran its most expensive ad in history, on television during the Super Bowl. The ad never mentioned any Avon products! It only solicited "salespeople." Still, global revenue dropped continuously over the next 10 years. Avon stock value fell from over $30 to just over $3.

Finally, Avon split off its faltering North American business and sold it to the Korean company, LG Household & Health Care. Avon claimed to have 250,000 sales representatives in North America. The remaining global business was later sold to the Brazilian MLM, Natura (NTCO) down 50% YTD, which also owns the retailer, Body Shop. Though Avon global was much larger, Avon shareholders traded 3 shares of Avon for just one in Natura.

The Korean-owned segment of Avon in North America is now classic MLM, selling the proverbial MLM "income opportunity" along with "health" supplements, make-up, jewelry, clothing, scented candles, even toothpaste.

On the Canadian Avon website, Avon promotes the "income opportunity," urging prospects in large bold black type: "Think big. Sell Avon part-time, full-time, you decide how much! It’s your business, your way!"

A disclosure (legally required in Canada, but not in the USA) appears midway down a long webpage in tiny, barely visible gray lettering: "The 2020 earnings of a typical Avon Leadership Representative was between $0 and $2,620 in commissions and bonuses." That's $0 to $50 a week, before subtracting all costs! And the "disclosure" does not break out how much of that tiny return comes from personal sales or the "downline."

Avon quietly rejoined the Direct Selling Association. The Brazilian company, Natura, which took over Avon's global business in 2020, has lost over 60% of its stock value in the last year.

Tupperware on the Brink

Tupperware was one of the first "party plan" companies, which are technically a small subset of MLM. They employ an "endless" recruiting chain, but are more rooted in retail sales transacted at "parties." Tupperware used to have a popular brand with innovative, differentiated products. But, as true direct selling began to disappear, Tupperware went into decline. It added MLM-type "health and beauty" commodities to bolster recruiting appeal but then deleted them. This year, it began also selling its products in Target department stores. Its kitchen-related goods are generally not distinct from other brands. A 10-months "Income disclosure" for Canada (not published in the USA) showed that half the "party planners" were classified "inactive," earning less than $30 for the period on average. 94% of the "active" ones reportedly received about $12 a week on average, before expenses.

In the last 5 years, the stock value of Tupperware has dropped over 90%. Its latest financials warned investors the company may violate loan agreements, setting off speculation Tupperware might declare bankruptcy.

The shrunken and devolved state of Avon and Tupperware, the most famous brand-icons of "direct selling," makes citing them as a defense of "multi-level marketing" as extinct as their old business model.

This article was written by

394 Followers
Robert L. FitzPatrick is the author of the new book, Ponzinomics, the Untold Story of Multi-Level Marketing (2020),the first comprehensive history and analysis of the "MLM" phenomenon, addressing its political influence, propaganda techniques and use of cult persuasion. FitzPatrick is an expert in examining and revealing deception and fraud in Ponzi schemes, pyramid schemes and bogus home-based businesses. He served as expert or consultant in more than 30 court cases involving pyramid schemes and multi-level marketing. He is co-author of False Profits (1997), an examination of the values and beliefs that support the delusions of pyramid schemes. He was featured on NBC Dateline, ABC World News, and CBS 60 Minutes, the documentary film, Betting on Zero and the podcast, The Dream.He has been quoted in many newspapers around the world, including the New York Times and Wall Street Journal. His booklet, Pyramid Nation, has been translated to Chinese and used by government regulators in writing China's first laws on pyramid schemes. His booklet, "The 10 Big Lies of Multi-Level Marketing", has been translated into four languages and posted on numerous websites. His White Paper, "The Main Street Bubble", which details the extensive influence-buying of the direct selling industry was featured in a CNBC Documentary, Selling the American Dream. In 2005, he delivered a seminar to in Colombo, Sri Lanka to central banking representatives from that country as well as India, Bangladesh, Bhutan, Maldives and Nepal. Robert FitzPatrick has developed informational resources for consumers, journalists, academics and regulators including a multi-media PowerPoint presentation and a statistical analysis of the losses suffered by participants in pyramid selling schemes. He also published a widely read booklet on the landmark federal case brought against the Amway Corporation. He is a expert network member of GLG Research, and Coleman Research Group, as well as other networks of experts who are referred to clients for consultation, speaking and report writing. In this capacity, he has provided expert consultation to financial many analysts who sought information about multi-level marketing companies and pyramid and Ponzi schemes. Robert FitzPatrick co-founded and serves as president of Pyramid Scheme Alert, the first international organization to expose and prevent pyramid scheme fraud. He personally responds to hundreds of consumer and news media inquiries each year. He has served as consultant and expert witness for Attorney General or State Attorney offices in four states, the US Dept. of Justice, and in numerous cases involving distributor fraud and pyramid schemes. Robert FitzPatrick is not an investor in multi-level marketing companies. He has never owned and never plans to own stocks of multi-level marketing companies. He has never been compensated based on any stock's performance. He does not offer investment advice and he is not an attorney.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This article is for educational purposes only. It discusses fundamentals of the "direct selling" business model and the evolution of "multi-level marketing."

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LuLaRoe's business practices led to legal action being taken against the company, as featured in the docuseries LuLaRich.

Title:

Content: W TV CLUB

LuLaRich is Not Your Average Fashion Documentary

Cult allegations, manipulation, and debt—LuLaRich is not just a documentary about some basic leggings sold by an MLM company.

Courtesy of Amazon

Welcome to W TV Club, in which W magazine’s editors choose a television show they’d recommend you binge-watch. Our November picks will be a selection of docuseries. This week, culture editor Brooke Marine recommends Amazon Prime’s LuLaRich, which is more than just a documentary about leggings.

This year, it seems like there has been quite an uptick in the number of docuseries produced and distributed by the various streaming platforms that rule my life. Admittedly, I have slept on a few. One of those docuseries is LuLaRich, the four-part investigation into the legging brand LuLaRoe, and how its multilevel marketing business model wreaked havoc on the lives of its salespeople and customers.

LuLaRoe started as a maxi skirt company before dipping into leggings territory. I had never seen any of these skirts or leggings on my feed, though in the documentary—which includes interviews with the company’s founders DeAnne and Mark Stidham as well as former LuLaRoe retailers—it’s explained that the company became quite popular in the 2010s, particularly on Facebook and Instagram.

“We’re not in the clothing business,” co-founder Mark Stidham says, “We’re in the people business.” Sure—that becomes abundantly clear once the series outlines how his company’s MLM model not only scammed the company’s retailers into debt, but also how the founders were accused of starting a cult. Yes, a cult.

Multilevel marketing is technically legal, in case you were wondering. As explained in the documentary, the business model began decades ago with a company called Nutrilite (a food supplement) which paved the way for Amway, a company that made the salesperson into the customer. In the MLM model, a company generates revenue by multiplying the number of sales people, who buy into the company with fees. It doesn’t matter what the product is—it could be beauty products, “wellness” supplements, or even, as demonstrated in the HBO docuseries The Vow, which chronicled the explosion of the NXIVM cult in North America, a “self-help” seminar. In LuLaRich, it’s the leggings. You could sell a concept as part of an MLM, and as long as you have enough levels of loyal salespeople willing to be both customer and recruiter, the people or person at the top will have a stream of revenue.

That’s all explained in the first episode of the four-part series; LuLaRoe seemed to have legitimate origins. But then weird stuff started happening. The legging designs seemed to suggest sexual innuendos. The inventory wasn’t matching up with what was being sold. In the first episode alone—and I am not even joking, yet I truly wish I were—there are sound bites from former LuLaRoe retailers saying, “The whole house smelled like the dead-fart leggings.”

There are also a few strange anecdotes from the LuLa Roe founders, the Stidhams, who are proud members of the Church of Jesus Christ of Latter-day Saints (the Mormon church, in other words). A few of the LulaRoe founders’ 14 children are adopted, and one of those adopted kids is married to one of the founders’ biological daughters, though the parents ham-handedly assure the viewer they have zero blood relation and never grew up in the same house together. And what’s even wilder is that DeAnne Stidham’s maiden name was Startup. It’s stranger than fiction, really.

LuLaRich, directed by Jenner Furst and Julia Willoughby Nason, can at times feel like a parody of an MLM scheme, not a truthful report of actual events. While watching, I had to remind myself a couple of times that this is not a Search Party subplot. It really happened, and as outlined in the docuseries, legal action was later taken against the company. But I won’t spoil the ending for you—this series must be seen to be believed.

LuLaRoe was alleged to be a pyramid recruiting scheme.

LuLaRoe's leggings gained popularity on social media, specifically Facebook and Instagram, in the 2010s.

The MLM company considered a hybrid model is ShopToEarn, as it combines elements of traditional network marketing with other features.

Title:

Content: .: Site varsayılanı

What he hasn’t done is looked at each one individually

What he hasn’t done is looked at each one individually

I believe that what Mike says is true in Most cases because he has grouped all MLM or Network marketing together. There is no one product that gets stuck in a closet. There is no one product that you are forced to buy every month and figure out what you are going to do with it. You do have 800 retail stores that you can buy from each with it’s own online deals and over 10,000 Earth Friendly products to choose from. If you are using these products anyway, then where is the problem? Sure you can start your own affiliate site and you can take advantage of those who find it… you make the money, they get nothing. You can show the business to others that shop online and if they like it, they can earn their affiliate amounts back and get the benefit of those who they refer rather then like referring people to Costco, Sams, any club, doctor or even finding someone a job and receiving no referral back. There is no Balancing of legs.. you can have 150 on one side and 20 or 10 on one side and 2 on the other and make money.. not a fortune that many seem to think that you Have to make if you are in an MLM but enough to make more then if you had to take a part time or second full time time to exist. The money I have made in the past 2 months has been 90% just from my and others shopping. Name me a business, any business, that if you start, buy or join and don’t work it, you will make money? The people that I see that have not made any money for some reason expect that money will just flow in. If someone puts in the initial amount and does nothing to work their business, then that is the amount that they may lose, no more. So, although I can understand some of the harse comments made by some of those above, i feel that they really are looking at the industry as a whole.

Capt Steve makes a fair point. Shop to Earn for lets say $450 is a heck of alot better than the ridiculous Team National which asks folks to fork over $2200. I have never seen something as ridiculous as that.

I’ve looked at over 100 network marketing business opportunities in the last eight years or so, and the only one I’ve EVER considered joining was ShopToEarn. Here’s why:

Although many will argue that STE falls into that category it really does not

– The very realistic chance of making your initial investment back in the first 30 days. – A compensation plan which far surpasses that of just amout any other network marketing model I’ve seen. I think someone pointed out earlier that calling ShopToEarn ‘network marketing’ isn’t entirely accurate. I would agree with that. It’s more of a hybrid. In a nutshell, though, the STE compensation plan goes deep, instead of wide. This allows you to make a LOT more money a LOT faster. .. and you still have to work… but I think https://www.hookupdate.net/pl/dating-com-recenzja your chances are much better with this company than others. – No branded product/inventory – No home parties/workshops – The sheer volume of what you can sell through STE allows you to approach several niche markets

No guarantees

It seems a lot of people on this site are against MLM as a whole. I really don’t understand that, as MLM, as a whole, has proven to be very successful for a great many people.

According to the FTC, approximately 99% of individuals participating in multi-level marketing schemes lose money, primarily due to the requirement of purchasing products in advance with the hope of reselling them at a profit.

Title:

Content: Terrible Things People Do For Money: What You NEED To Learn

0

You can laugh if you want. But, growing up, I was into professional wrestling. It was something that my dad was a fan of. So, naturally, this is what we did to bond.

Anyway, there was this wrestler named Ted DiBiase whose gimmick was “The Million Dollar” man. And, he had an amazing catchphrase; “Everybody’s got a price.”

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For some of us. That actually might be true.

Questionable Acts People Would Do For Money

A survey of 1,000 conducted by OnePoll.com found that 6% of people would commit murder for $1 billion. Treason, armed robbery, mugging with a weapon, or assisting in suicide are some of the crimes committed by one in ten people.

What about a million bucks? In addition to credit card fraud, one in ten would smuggle drugs over the border or even star in an amateur pornographic video. In exchange for $100,000,000, a quarter of people would steal a bike, forge a signature, lie to police and donate sperm or eggs without their partner’s knowledge. Meanwhile, a demented one in ten would kick a kitten or puppy. And, that same figure would take performance-enhancing drugs to win a sporting event or beat up a stranger.

For $100,000? 25% of people would steal a street sign. It’s also enough for one in five people to forge a signature or take from a restaurant or hotel. One in ten say they would enter into a sham marriage, perform a sexual act on a stranger, falsify tax returns, or snatch a purse for the same amount.

In exchange for $10,000, one in five will steal a street sign, shoplift or flash a stranger. On the other hand, one out of ten people would lie under oath, steal a bike or spend counterfeit cash for the same price.

What would people do for a thousand bucks? 15% of people were willing to shoplift or bet on a fixed sporting event.

Why Do Good People Do Bad Things?

Some people may not have much in terms of a moral compass. I would actually think that most of us are the opposite. Committing a heinous crime not only cheapens life. What’s more, there are additional costs that far outweigh the monetary value.

For serious crimes, you have legal expenses, as well as the probability of going to prison. Also, even if you aren’t charged with a crime, that money can be seized.

And, let’s be real here. Would really trust someone to offer you a large sum of money to commit a crime? There’s a good chance it’s a scam or set it up, such as the fake website Rent-A-Hitman. Even if the offer was real, that’s definitely someone you do not want to associate with.

Still, even decent and law-abiding citizens may do bad things.

Researchers from the University of Utah and Harvard found that even the prospect of money encourages unethical behavior.

“Were were interested in why good people would do bad behavior,” Kristin Smith-Crowe, a management professor and co-author of the study told CNBC.

“We certainly found that the love of money is corrupting and just the mere exposure to it makes people do bad things,” Smith-Crowe said.

“The study didn’t ask people to do horrible acts, there were more mundane like stealing office supplies,” Smith-Crowe added. For example, taking home a ream of paper from work when your printer at home is empty.

The Worst Ways to Make Money

So, with all that being said, that got me thinking. What are the worst ways to make money? And, no. I’m not talking about unspeakable acts like murder or hurting an animal. My focus is on seemingly legit, yet risky, illegal, dangerous, and unprofitable ways to make some extra cash.

Taking online surveys.

There is no shortage of online surveys. With some surveys, you’re asked your opinion on current events or to perform an act of kindness. Most often, however, surveys want your feedback on a product or service.

However, whenever you see a survey that promises decent money in hardly any time, buyer beware. While these surveys do pay, the cost is minimal. I’m taking from a couple of cents to a couple of dollars. Is it really worth your time to make that little amount of money?

A better option would be picking up a second job, even if it’s a minimum wage job you do on the weekend. If that’s not an option, consider a focus group or qualitative research study if you want a well-paying survey.

I should also add that online surveys aren’t the worst idea for certain demographics. For example, a stay-at-parent could do these surveys while their kid(s) are napping.

Medical testing and selling bodily fluids.

“Paid medical testing is neither a scam nor a low-reward opportunity; it’s possible to make actual money if you devote yourself to being a full-time pincushion for science,” writes Jon Skindzier for Ask Men. “No, this idea comes with its own unique set of drawbacks like vomiting, chills, seizure, death — stuff like that.”

“Six subjects in London, for example, suffered organ damage and life-threatening complications while testing an arthritis treatment in 2006,” he adds. “The real question isn’t whether or not you can make money this way; it’s how much bodily harm you’re willing to risk in the process.”

Stying in the “ick” zone, this is also true of selling bodily fluids. Processes are long, complex, and time-consuming, but the pay is low.

It’s possible for women to sell their eggs too. In addition to taking up time, this procedure can also be rather painful since fertility shots are often necessary. It is true that donations are not a dependable way of making money, and very often they are restricted by time constraints.

Multilevel marketing companies (MLMs).

If you haven’t personally been invited, I guarantee someone you know has been. Invited to what? Those “parties” where a friend or acquaintance is selling essential oils, pet care products, jewelry, children’s books, etc.

It turns out, that this is a MLM program.

As the FTC notes, “Most people who join legitimate MLMs make little or no money. Some of them lose money. In some cases, people believe they’ve joined a legitimate MLM, but it turns out to be an illegal pyramid scheme that steals everything they invest and leaves them deeply in debt.”

The FTC has also reported that 99% of people who take part in multiple-level marketing lose money. Why? Because MLM companies require their members to purchase products in advance with the hope of reselling them at a profit.

While there are some legit MLMs, Avon springs to mind, if you aren’t a salesperson or have the upfront costs you might want to consider alternatives. Freelancing, affiliate marketing, or drop shipping might be some viable options that are better suited to your budget and/or skills.

Using click-bait to sell links.

The majority of bloggers earn their living from advertising, affiliate sales, and more. Click-bait links, those that lead nowhere, to the wrong site, or make your browser a mess, aren’t sold or bought by them. Overall, there is little money to be made from these bottom-feeding methods.

How can you make money from a blog then? Partner with trusted affiliate programs such as ClickBank, ShareASale, or Commission. From there, you can set up ads with Google AdSense.

Those fake links will eventually get noticed by your readers, and they will stop reading your articles.

Sign spinning.

We’ve all seen them on the sidewalks holding signs advertising particular businesses. No matter the weather, at least one is always trying to attract customers. Because you are required to stand all day long, the job is extremely tiring as well.

Additionally, the pay is usually low. And, the practice has been criticized for causing distractions among drivers.

If you’re looking for part-time or a side hustle, you might want to explore more fulfilling options. If you’re a dog person, then consider dog walking or sitting. Do you like cruising around town? Maybe deliver food or rideshare.

Day trading.

Unless you have a lot of experience in investing, day trading in the stock market is highly risky. As a new investor, you should stick with mutual funds until you gain more experience.

While it isn’t as exciting or profitable, at least you’ll be able to make money as you learn the ropes.

Selling pirated materials.

Many pirated electronic books or digital copies of Hollywood blockbusters can be found and downloaded online either for free or for a small fee. Sound appealing, right? After all, it’s cheaper than going to the theater or buying an original copy. And, these are major corporations that can take the hit.

Well, it’s not as harmless you may have assumed. In 2022, it’s expected that the movie and TV industry will lose $51.6 billion to online piracy. Additionally, piracy can land you in trouble with local, state, and national authorities as well as your Internet provider.

Online gambling.

I know a couple of people who boast about the money they made gambling — either in-person or online. My first question? “Yeah, but how much did you lose to win that money?”

Trying to make money with gambling of any kind is always a bad move. In addition, online gambling is more accessible 24/7, making it easier to become addicted to it than in-person gambling. If not treated, you can literally lose everything.

If you have a gambling addiction, please got professional help. And, even if you don’t, look for other alternatives to make money where the societal and financial cost isn’t as high.

Work-from-home scams.

Online money-making offers that seem too good to be true probably are. The scammer capitalizes on your desperation to obtain your personal information so that they can steal your identity or use the money to set up a job for you. In cases where something seems fishy, such as poor spelling or grammar in an advertisement or on a website or a request for you to send money, you should be cautious.

That’s not to say that there aren’t legit work-from-home opportunities. In fact, here are 12 work-from-home jobs that will help you earn a million dollars in less than 10 years.

Recycling.

Once again, we are seeing an extremely time-consuming effort for very little result. In addition, lots of recycling must be done before profits can be made. It is usually necessary to obtain recyclables from others before profits can be made. It simply does not make sense to move and clean substantial quantities of items unless you have the storage space and means to accomplish this.

I can personally attest to this. I thought years ago that instead of just recycling my cans, why not make some money off of them. For months I crushed and stored cans until I had several big bags. I took them to the scrap yard and got like $20. It wasn’t even worth the gas going back and forth.

Final Words of Advice

You have to know which opportunities are worthwhile and which ones aren’t if you’re looking to start a new side hustle or just make money online. You can find better alternatives to all these bad ideas on our list of 101 passive business and income ideas.

Article by John Rampton, Due

About the Author

John Rampton is an entrepreneur and connector. When he was 23 years old while attending the University of Utah he was hurt in a construction accident. His leg was snapped in half. He was told by 13 doctors he would never walk again. Over the next 12 months he had several surgeries, stem cell injections and learned how to walk again. During this time he studied and mastered how to make money work for you, not against you. He has since taught thousands through books, courses and written over 5000 articles online about finance, entrepreneurship and productivity. He has been recognized as the Top Online Influencers in the World by Entrepreneur Magazine, Finance Expert by Time and Annuity Expert by Nasdaq. He is the Founder and CEO of Due.

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MLMs rely on recruiting people with promises of high income, rather than focusing on selling products to end-users.

LuLaRoe uses a multi-level marketing (MLM) business model, focusing on recruiting distributors and building a network of people rather than just selling clothing.


Avon is an example of a company that has shifted its focus from retail sales to recruiting, starting this transition in 2000.

"Avon, a company that has shifted its focus from retail sales to recruiting, is now promoting the 'income opportunity' to prospects on its Canadian website, characteristic of the multi-level marketing (MLM) business model."

LuLaRoe's business practices led to legal action being taken against the company, as featured in the docuseries LuLaRich.

LuLaRoe was alleged to be a pyramid recruiting scheme.

LuLaRoe's leggings gained popularity on social media, specifically Facebook and Instagram, in the 2010s.

The MLM company considered a hybrid model is ShopToEarn, as it combines elements of traditional network marketing with other features.

According to the FTC, approximately 99% of individuals participating in multi-level marketing schemes lose money, primarily due to the requirement of purchasing products in advance with the hope of reselling them at a profit.

"A large percentage, between 90-99%, of people participating in MLMs are likely to lose money, as indicated by the high loss rates and churn rates among new recruits."

MLMs rely on recruiting people with promises of high income, rather than focusing on selling products to end-users.

MLMs rely on recruiting an endless chain of direct sellers to gain unlimited income, with each seller meeting a quota to qualify for future rewards from their recruits.

"MLMs, like Tupperware, often rely on recruiting people with promises of high income rather than selling products to end-users, which can lead to their decline."

LuLaRoe uses a multi-level marketing (MLM) business model, focusing on recruiting distributors and building a network of people rather than just selling clothing.

"LuLaRoe likely operates on a multi-level marketing business model, where members earn income from both personal sales and the sales of their recruits, with the potential for unlimited income through the recruitment of an endless chain of sellers."

LuLaRoe uses a multilevel marketing business model, which has had a negative impact on its salespeople and customers.

LuLaRoe utilizes a multilevel marketing (MLM) business model, where revenue is generated by multiplying the number of salespeople who buy into the company with fees, and the salespeople act as both customers and recruiters.

Avon is an example of a company that has shifted its focus from retail sales to recruiting, starting this transition in 2000.

Title:

Content: 'Direct Selling' - Avon, Tupperware - Is Extinct

Nov. 18, 2022 11:25 AM ETHLF, MED, NTCO, NUS, PRI, TUP, USNA3 Comments
Robert FitzPatrick
394 Followers

Summary

  • Direct Selling became obsolete generations ago. So how is it that millions today get recruited for "income opportunity" in "direct selling" and billions are traded on "direct selling" stocks?
  • Avon and Tupperware are cited by "multi-level marketing," or MLM, promoters as "proof" that MLM, e.g., Amway, Herbalife, is "direct selling."
  • Usable data on actual income and churn rates of MLM "direct sellers," market saturation, and retail sales to actual customers are not provided.
  • In fact, Avon and Tupperware for years have been walking dinosaurs, still trying to do "person-to-person" sales to end-users with commodity products, while MLMs hype "unlimited" income.
  • The shrunken and devolved state of Avon and Tupperware today reveals that direct selling is extinct. MLM is not, and never was, direct selling.

It is generally accepted that "direct selling" was killed off generations ago by mass merchandising, big box stores, mail-order and then the internet, among other societal changes. The "Fuller Brush man" is long gone. No one's at home. No one wants or needs or has time for a "personal" salesperson. Everything's in stores or online. And, even when "direct selling" still lived, no one ever went into that tough line of work thinking they would get rich from it.

Yet, each year, millions are recruited, and pay thousands, for the "opportunity" to work as "direct sellers," with promises and expectations of "unlimited" income. The number involved today is many, many times greater than ever worked in that "extinct" field decades ago. Billions are being traded on Wall Street for shares of "direct selling" companies. How can this be?

In my book, Ponzinomics, the Untold Story of Multi-Level Marketing, I document the death of "direct selling" and the 1945 invention of "multi-level marketing," or MLM. I describe how "MLM" falsely assumed direct selling's revered old identity. I trace MLM from its Adam, a little California-based company called "Nutrilite," to today's "industry" led by Amway, Herbalife (HLF) down 64% YTD, Nuskin (NUS) down 31%, USANA Health Sciences (USNA) down 49%, Primerica, Inc. (PRI) down 13%, and Medifast (MED) down 45%. MLM's financial solicitations for consumers to become "direct sellers" have reached into – and led to losses for – virtually every household in America.

In the newly invented "MLM," the main source of revenue shifted from end-user customers to the salespeople themselves who are incentivized to "be their own customer" by buying their own products. Obviously, no one makes money purchasing their own inventory, but MLM offered a unique reason to do so – "unlimited" income potential.

No More Need to Knock on Doors

All MLM "direct sellers" can potentially gain "unlimited" income by recruiting an "endless" chain of other "direct sellers." No need to pound the pavement and get rudely rejected at front doors any more. Each "direct seller" on the chain has to meet a quota to "qualify" for future rewards from their recruits who, in turn, are their "own customers" and recruiters too, ad infinitum. The chain can grow without continuous personal effort. The qualifying quota can usually be met by just making a personal monthly purchase of inventory. "Commissions" on all these transactions, all the way down to the "last ones in," flow up the chain. In the MLM pay plan, most of the total commissions go to the top 1%. So, all new "direct sellers" try mightily to recruit (and buy) their way to those top ranks. Of course, only a tiny few can ever be at the top.

Some people argued this is a pyramid recruiting scheme, inherently unfair and deceptive, and a counterfeit of direct selling. In the design and the pay plan, bottom ranks – the vast majority – will inevitably lose. They said constantly adding salespeople in any area destroys profitable retail selling potential, if any exists to start with. They cited data on 90-99% loss rates and huge churn rates among new "recruits" and asked, where are the retail "customers"?

While offering no data on retail customers or salespeople losses or market saturation, MLM promoters offered "proof" that MLM is direct selling by pointing to two long-established and respected direct selling companies in their ranks, Avon and Tupperware (TUP). Both companies were members of the Direct Selling Association, DSA, and both were "direct selling" icons, Avon for its "ladies" and Tupperware for its "parties." To any pyramid scheme accusations, MLM promoters indignantly countered: "Are you calling Avon and Tupperware pyramid schemes?"

Walking Dinosaurs

The truth for both companies is very different from the MLM-spin. Avon and Tupperware used to have differentiated products and real consumer demand. Their salespeople made money from their own retail sales. But moving into the 21st Century, Avon and Tupperware became walking dinosaurs, vestiges of the extinct era of "direct selling." They were still trying to base their businesses on their historical brands and on person-to-person retail sales to real customers, as direct selling companies always used to do.

Despite MLM's citing Avon and Tupperware, and thereby bestowing legitimacy on the "MLM" members of the Direct Selling Association, deep differences between those icons of the old era and MLM burst into public view in 2013-14. The two companies publicly quit the Direct Selling Association, charging ethics violations and DSA-member connections to pyramid schemes.

Avon's Long Good-Bye

Avon had been a true direct seller for decades before MLM was invented. But as the door-to-door model faded, Avon began a long decline. In 2000, Avon began shifting its focus to "incentivizing" salespeople to recruit more salespeople and getting them to buy inventory, MLM-style. In 2009, during the Great Recession, Avon ran its most expensive ad in history, on television during the Super Bowl. The ad never mentioned any Avon products! It only solicited "salespeople." Still, global revenue dropped continuously over the next 10 years. Avon stock value fell from over $30 to just over $3.

Finally, Avon split off its faltering North American business and sold it to the Korean company, LG Household & Health Care. Avon claimed to have 250,000 sales representatives in North America. The remaining global business was later sold to the Brazilian MLM, Natura (NTCO) down 50% YTD, which also owns the retailer, Body Shop. Though Avon global was much larger, Avon shareholders traded 3 shares of Avon for just one in Natura.

The Korean-owned segment of Avon in North America is now classic MLM, selling the proverbial MLM "income opportunity" along with "health" supplements, make-up, jewelry, clothing, scented candles, even toothpaste.

On the Canadian Avon website, Avon promotes the "income opportunity," urging prospects in large bold black type: "Think big. Sell Avon part-time, full-time, you decide how much! It’s your business, your way!"

A disclosure (legally required in Canada, but not in the USA) appears midway down a long webpage in tiny, barely visible gray lettering: "The 2020 earnings of a typical Avon Leadership Representative was between $0 and $2,620 in commissions and bonuses." That's $0 to $50 a week, before subtracting all costs! And the "disclosure" does not break out how much of that tiny return comes from personal sales or the "downline."

Avon quietly rejoined the Direct Selling Association. The Brazilian company, Natura, which took over Avon's global business in 2020, has lost over 60% of its stock value in the last year.

Tupperware on the Brink

Tupperware was one of the first "party plan" companies, which are technically a small subset of MLM. They employ an "endless" recruiting chain, but are more rooted in retail sales transacted at "parties." Tupperware used to have a popular brand with innovative, differentiated products. But, as true direct selling began to disappear, Tupperware went into decline. It added MLM-type "health and beauty" commodities to bolster recruiting appeal but then deleted them. This year, it began also selling its products in Target department stores. Its kitchen-related goods are generally not distinct from other brands. A 10-months "Income disclosure" for Canada (not published in the USA) showed that half the "party planners" were classified "inactive," earning less than $30 for the period on average. 94% of the "active" ones reportedly received about $12 a week on average, before expenses.

In the last 5 years, the stock value of Tupperware has dropped over 90%. Its latest financials warned investors the company may violate loan agreements, setting off speculation Tupperware might declare bankruptcy.

The shrunken and devolved state of Avon and Tupperware, the most famous brand-icons of "direct selling," makes citing them as a defense of "multi-level marketing" as extinct as their old business model.

This article was written by

394 Followers
Robert L. FitzPatrick is the author of the new book, Ponzinomics, the Untold Story of Multi-Level Marketing (2020),the first comprehensive history and analysis of the "MLM" phenomenon, addressing its political influence, propaganda techniques and use of cult persuasion. FitzPatrick is an expert in examining and revealing deception and fraud in Ponzi schemes, pyramid schemes and bogus home-based businesses. He served as expert or consultant in more than 30 court cases involving pyramid schemes and multi-level marketing. He is co-author of False Profits (1997), an examination of the values and beliefs that support the delusions of pyramid schemes. He was featured on NBC Dateline, ABC World News, and CBS 60 Minutes, the documentary film, Betting on Zero and the podcast, The Dream.He has been quoted in many newspapers around the world, including the New York Times and Wall Street Journal. His booklet, Pyramid Nation, has been translated to Chinese and used by government regulators in writing China's first laws on pyramid schemes. His booklet, "The 10 Big Lies of Multi-Level Marketing", has been translated into four languages and posted on numerous websites. His White Paper, "The Main Street Bubble", which details the extensive influence-buying of the direct selling industry was featured in a CNBC Documentary, Selling the American Dream. In 2005, he delivered a seminar to in Colombo, Sri Lanka to central banking representatives from that country as well as India, Bangladesh, Bhutan, Maldives and Nepal. Robert FitzPatrick has developed informational resources for consumers, journalists, academics and regulators including a multi-media PowerPoint presentation and a statistical analysis of the losses suffered by participants in pyramid selling schemes. He also published a widely read booklet on the landmark federal case brought against the Amway Corporation. He is a expert network member of GLG Research, and Coleman Research Group, as well as other networks of experts who are referred to clients for consultation, speaking and report writing. In this capacity, he has provided expert consultation to financial many analysts who sought information about multi-level marketing companies and pyramid and Ponzi schemes. Robert FitzPatrick co-founded and serves as president of Pyramid Scheme Alert, the first international organization to expose and prevent pyramid scheme fraud. He personally responds to hundreds of consumer and news media inquiries each year. He has served as consultant and expert witness for Attorney General or State Attorney offices in four states, the US Dept. of Justice, and in numerous cases involving distributor fraud and pyramid schemes. Robert FitzPatrick is not an investor in multi-level marketing companies. He has never owned and never plans to own stocks of multi-level marketing companies. He has never been compensated based on any stock's performance. He does not offer investment advice and he is not an attorney.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This article is for educational purposes only. It discusses fundamentals of the "direct selling" business model and the evolution of "multi-level marketing."

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"Avon, a company that has shifted its focus from retail sales to recruiting, is now promoting the 'income opportunity' to prospects on its Canadian website, characteristic of the multi-level marketing (MLM) business model."

LuLaRoe's business practices led to legal action being taken against the company, as featured in the docuseries LuLaRich.

Title:

Content: W TV CLUB

LuLaRich is Not Your Average Fashion Documentary

Cult allegations, manipulation, and debt—LuLaRich is not just a documentary about some basic leggings sold by an MLM company.

Courtesy of Amazon

Welcome to W TV Club, in which W magazine’s editors choose a television show they’d recommend you binge-watch. Our November picks will be a selection of docuseries. This week, culture editor Brooke Marine recommends Amazon Prime’s LuLaRich, which is more than just a documentary about leggings.

This year, it seems like there has been quite an uptick in the number of docuseries produced and distributed by the various streaming platforms that rule my life. Admittedly, I have slept on a few. One of those docuseries is LuLaRich, the four-part investigation into the legging brand LuLaRoe, and how its multilevel marketing business model wreaked havoc on the lives of its salespeople and customers.

LuLaRoe started as a maxi skirt company before dipping into leggings territory. I had never seen any of these skirts or leggings on my feed, though in the documentary—which includes interviews with the company’s founders DeAnne and Mark Stidham as well as former LuLaRoe retailers—it’s explained that the company became quite popular in the 2010s, particularly on Facebook and Instagram.

“We’re not in the clothing business,” co-founder Mark Stidham says, “We’re in the people business.” Sure—that becomes abundantly clear once the series outlines how his company’s MLM model not only scammed the company’s retailers into debt, but also how the founders were accused of starting a cult. Yes, a cult.

Multilevel marketing is technically legal, in case you were wondering. As explained in the documentary, the business model began decades ago with a company called Nutrilite (a food supplement) which paved the way for Amway, a company that made the salesperson into the customer. In the MLM model, a company generates revenue by multiplying the number of sales people, who buy into the company with fees. It doesn’t matter what the product is—it could be beauty products, “wellness” supplements, or even, as demonstrated in the HBO docuseries The Vow, which chronicled the explosion of the NXIVM cult in North America, a “self-help” seminar. In LuLaRich, it’s the leggings. You could sell a concept as part of an MLM, and as long as you have enough levels of loyal salespeople willing to be both customer and recruiter, the people or person at the top will have a stream of revenue.

That’s all explained in the first episode of the four-part series; LuLaRoe seemed to have legitimate origins. But then weird stuff started happening. The legging designs seemed to suggest sexual innuendos. The inventory wasn’t matching up with what was being sold. In the first episode alone—and I am not even joking, yet I truly wish I were—there are sound bites from former LuLaRoe retailers saying, “The whole house smelled like the dead-fart leggings.”

There are also a few strange anecdotes from the LuLa Roe founders, the Stidhams, who are proud members of the Church of Jesus Christ of Latter-day Saints (the Mormon church, in other words). A few of the LulaRoe founders’ 14 children are adopted, and one of those adopted kids is married to one of the founders’ biological daughters, though the parents ham-handedly assure the viewer they have zero blood relation and never grew up in the same house together. And what’s even wilder is that DeAnne Stidham’s maiden name was Startup. It’s stranger than fiction, really.

LuLaRich, directed by Jenner Furst and Julia Willoughby Nason, can at times feel like a parody of an MLM scheme, not a truthful report of actual events. While watching, I had to remind myself a couple of times that this is not a Search Party subplot. It really happened, and as outlined in the docuseries, legal action was later taken against the company. But I won’t spoil the ending for you—this series must be seen to be believed.

LuLaRoe was alleged to be a pyramid recruiting scheme.

LuLaRoe's leggings gained popularity on social media, specifically Facebook and Instagram, in the 2010s.

The MLM company considered a hybrid model is ShopToEarn, as it combines elements of traditional network marketing with other features.

Title:

Content: .: Site varsayılanı

What he hasn’t done is looked at each one individually

What he hasn’t done is looked at each one individually

I believe that what Mike says is true in Most cases because he has grouped all MLM or Network marketing together. There is no one product that gets stuck in a closet. There is no one product that you are forced to buy every month and figure out what you are going to do with it. You do have 800 retail stores that you can buy from each with it’s own online deals and over 10,000 Earth Friendly products to choose from. If you are using these products anyway, then where is the problem? Sure you can start your own affiliate site and you can take advantage of those who find it… you make the money, they get nothing. You can show the business to others that shop online and if they like it, they can earn their affiliate amounts back and get the benefit of those who they refer rather then like referring people to Costco, Sams, any club, doctor or even finding someone a job and receiving no referral back. There is no Balancing of legs.. you can have 150 on one side and 20 or 10 on one side and 2 on the other and make money.. not a fortune that many seem to think that you Have to make if you are in an MLM but enough to make more then if you had to take a part time or second full time time to exist. The money I have made in the past 2 months has been 90% just from my and others shopping. Name me a business, any business, that if you start, buy or join and don’t work it, you will make money? The people that I see that have not made any money for some reason expect that money will just flow in. If someone puts in the initial amount and does nothing to work their business, then that is the amount that they may lose, no more. So, although I can understand some of the harse comments made by some of those above, i feel that they really are looking at the industry as a whole.

Capt Steve makes a fair point. Shop to Earn for lets say $450 is a heck of alot better than the ridiculous Team National which asks folks to fork over $2200. I have never seen something as ridiculous as that.

I’ve looked at over 100 network marketing business opportunities in the last eight years or so, and the only one I’ve EVER considered joining was ShopToEarn. Here’s why:

Although many will argue that STE falls into that category it really does not

– The very realistic chance of making your initial investment back in the first 30 days. – A compensation plan which far surpasses that of just amout any other network marketing model I’ve seen. I think someone pointed out earlier that calling ShopToEarn ‘network marketing’ isn’t entirely accurate. I would agree with that. It’s more of a hybrid. In a nutshell, though, the STE compensation plan goes deep, instead of wide. This allows you to make a LOT more money a LOT faster. .. and you still have to work… but I think https://www.hookupdate.net/pl/dating-com-recenzja your chances are much better with this company than others. – No branded product/inventory – No home parties/workshops – The sheer volume of what you can sell through STE allows you to approach several niche markets

No guarantees

It seems a lot of people on this site are against MLM as a whole. I really don’t understand that, as MLM, as a whole, has proven to be very successful for a great many people.

According to the FTC, approximately 99% of individuals participating in multi-level marketing schemes lose money, primarily due to the requirement of purchasing products in advance with the hope of reselling them at a profit.

Title:

Content: Terrible Things People Do For Money: What You NEED To Learn

0

You can laugh if you want. But, growing up, I was into professional wrestling. It was something that my dad was a fan of. So, naturally, this is what we did to bond.

Anyway, there was this wrestler named Ted DiBiase whose gimmick was “The Million Dollar” man. And, he had an amazing catchphrase; “Everybody’s got a price.”

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For some of us. That actually might be true.

Questionable Acts People Would Do For Money

A survey of 1,000 conducted by OnePoll.com found that 6% of people would commit murder for $1 billion. Treason, armed robbery, mugging with a weapon, or assisting in suicide are some of the crimes committed by one in ten people.

What about a million bucks? In addition to credit card fraud, one in ten would smuggle drugs over the border or even star in an amateur pornographic video. In exchange for $100,000,000, a quarter of people would steal a bike, forge a signature, lie to police and donate sperm or eggs without their partner’s knowledge. Meanwhile, a demented one in ten would kick a kitten or puppy. And, that same figure would take performance-enhancing drugs to win a sporting event or beat up a stranger.

For $100,000? 25% of people would steal a street sign. It’s also enough for one in five people to forge a signature or take from a restaurant or hotel. One in ten say they would enter into a sham marriage, perform a sexual act on a stranger, falsify tax returns, or snatch a purse for the same amount.

In exchange for $10,000, one in five will steal a street sign, shoplift or flash a stranger. On the other hand, one out of ten people would lie under oath, steal a bike or spend counterfeit cash for the same price.

What would people do for a thousand bucks? 15% of people were willing to shoplift or bet on a fixed sporting event.

Why Do Good People Do Bad Things?

Some people may not have much in terms of a moral compass. I would actually think that most of us are the opposite. Committing a heinous crime not only cheapens life. What’s more, there are additional costs that far outweigh the monetary value.

For serious crimes, you have legal expenses, as well as the probability of going to prison. Also, even if you aren’t charged with a crime, that money can be seized.

And, let’s be real here. Would really trust someone to offer you a large sum of money to commit a crime? There’s a good chance it’s a scam or set it up, such as the fake website Rent-A-Hitman. Even if the offer was real, that’s definitely someone you do not want to associate with.

Still, even decent and law-abiding citizens may do bad things.

Researchers from the University of Utah and Harvard found that even the prospect of money encourages unethical behavior.

“Were were interested in why good people would do bad behavior,” Kristin Smith-Crowe, a management professor and co-author of the study told CNBC.

“We certainly found that the love of money is corrupting and just the mere exposure to it makes people do bad things,” Smith-Crowe said.

“The study didn’t ask people to do horrible acts, there were more mundane like stealing office supplies,” Smith-Crowe added. For example, taking home a ream of paper from work when your printer at home is empty.

The Worst Ways to Make Money

So, with all that being said, that got me thinking. What are the worst ways to make money? And, no. I’m not talking about unspeakable acts like murder or hurting an animal. My focus is on seemingly legit, yet risky, illegal, dangerous, and unprofitable ways to make some extra cash.

Taking online surveys.

There is no shortage of online surveys. With some surveys, you’re asked your opinion on current events or to perform an act of kindness. Most often, however, surveys want your feedback on a product or service.

However, whenever you see a survey that promises decent money in hardly any time, buyer beware. While these surveys do pay, the cost is minimal. I’m taking from a couple of cents to a couple of dollars. Is it really worth your time to make that little amount of money?

A better option would be picking up a second job, even if it’s a minimum wage job you do on the weekend. If that’s not an option, consider a focus group or qualitative research study if you want a well-paying survey.

I should also add that online surveys aren’t the worst idea for certain demographics. For example, a stay-at-parent could do these surveys while their kid(s) are napping.

Medical testing and selling bodily fluids.

“Paid medical testing is neither a scam nor a low-reward opportunity; it’s possible to make actual money if you devote yourself to being a full-time pincushion for science,” writes Jon Skindzier for Ask Men. “No, this idea comes with its own unique set of drawbacks like vomiting, chills, seizure, death — stuff like that.”

“Six subjects in London, for example, suffered organ damage and life-threatening complications while testing an arthritis treatment in 2006,” he adds. “The real question isn’t whether or not you can make money this way; it’s how much bodily harm you’re willing to risk in the process.”

Stying in the “ick” zone, this is also true of selling bodily fluids. Processes are long, complex, and time-consuming, but the pay is low.

It’s possible for women to sell their eggs too. In addition to taking up time, this procedure can also be rather painful since fertility shots are often necessary. It is true that donations are not a dependable way of making money, and very often they are restricted by time constraints.

Multilevel marketing companies (MLMs).

If you haven’t personally been invited, I guarantee someone you know has been. Invited to what? Those “parties” where a friend or acquaintance is selling essential oils, pet care products, jewelry, children’s books, etc.

It turns out, that this is a MLM program.

As the FTC notes, “Most people who join legitimate MLMs make little or no money. Some of them lose money. In some cases, people believe they’ve joined a legitimate MLM, but it turns out to be an illegal pyramid scheme that steals everything they invest and leaves them deeply in debt.”

The FTC has also reported that 99% of people who take part in multiple-level marketing lose money. Why? Because MLM companies require their members to purchase products in advance with the hope of reselling them at a profit.

While there are some legit MLMs, Avon springs to mind, if you aren’t a salesperson or have the upfront costs you might want to consider alternatives. Freelancing, affiliate marketing, or drop shipping might be some viable options that are better suited to your budget and/or skills.

Using click-bait to sell links.

The majority of bloggers earn their living from advertising, affiliate sales, and more. Click-bait links, those that lead nowhere, to the wrong site, or make your browser a mess, aren’t sold or bought by them. Overall, there is little money to be made from these bottom-feeding methods.

How can you make money from a blog then? Partner with trusted affiliate programs such as ClickBank, ShareASale, or Commission. From there, you can set up ads with Google AdSense.

Those fake links will eventually get noticed by your readers, and they will stop reading your articles.

Sign spinning.

We’ve all seen them on the sidewalks holding signs advertising particular businesses. No matter the weather, at least one is always trying to attract customers. Because you are required to stand all day long, the job is extremely tiring as well.

Additionally, the pay is usually low. And, the practice has been criticized for causing distractions among drivers.

If you’re looking for part-time or a side hustle, you might want to explore more fulfilling options. If you’re a dog person, then consider dog walking or sitting. Do you like cruising around town? Maybe deliver food or rideshare.

Day trading.

Unless you have a lot of experience in investing, day trading in the stock market is highly risky. As a new investor, you should stick with mutual funds until you gain more experience.

While it isn’t as exciting or profitable, at least you’ll be able to make money as you learn the ropes.

Selling pirated materials.

Many pirated electronic books or digital copies of Hollywood blockbusters can be found and downloaded online either for free or for a small fee. Sound appealing, right? After all, it’s cheaper than going to the theater or buying an original copy. And, these are major corporations that can take the hit.

Well, it’s not as harmless you may have assumed. In 2022, it’s expected that the movie and TV industry will lose $51.6 billion to online piracy. Additionally, piracy can land you in trouble with local, state, and national authorities as well as your Internet provider.

Online gambling.

I know a couple of people who boast about the money they made gambling — either in-person or online. My first question? “Yeah, but how much did you lose to win that money?”

Trying to make money with gambling of any kind is always a bad move. In addition, online gambling is more accessible 24/7, making it easier to become addicted to it than in-person gambling. If not treated, you can literally lose everything.

If you have a gambling addiction, please got professional help. And, even if you don’t, look for other alternatives to make money where the societal and financial cost isn’t as high.

Work-from-home scams.

Online money-making offers that seem too good to be true probably are. The scammer capitalizes on your desperation to obtain your personal information so that they can steal your identity or use the money to set up a job for you. In cases where something seems fishy, such as poor spelling or grammar in an advertisement or on a website or a request for you to send money, you should be cautious.

That’s not to say that there aren’t legit work-from-home opportunities. In fact, here are 12 work-from-home jobs that will help you earn a million dollars in less than 10 years.

Recycling.

Once again, we are seeing an extremely time-consuming effort for very little result. In addition, lots of recycling must be done before profits can be made. It is usually necessary to obtain recyclables from others before profits can be made. It simply does not make sense to move and clean substantial quantities of items unless you have the storage space and means to accomplish this.

I can personally attest to this. I thought years ago that instead of just recycling my cans, why not make some money off of them. For months I crushed and stored cans until I had several big bags. I took them to the scrap yard and got like $20. It wasn’t even worth the gas going back and forth.

Final Words of Advice

You have to know which opportunities are worthwhile and which ones aren’t if you’re looking to start a new side hustle or just make money online. You can find better alternatives to all these bad ideas on our list of 101 passive business and income ideas.

Article by John Rampton, Due

About the Author

John Rampton is an entrepreneur and connector. When he was 23 years old while attending the University of Utah he was hurt in a construction accident. His leg was snapped in half. He was told by 13 doctors he would never walk again. Over the next 12 months he had several surgeries, stem cell injections and learned how to walk again. During this time he studied and mastered how to make money work for you, not against you. He has since taught thousands through books, courses and written over 5000 articles online about finance, entrepreneurship and productivity. He has been recognized as the Top Online Influencers in the World by Entrepreneur Magazine, Finance Expert by Time and Annuity Expert by Nasdaq. He is the Founder and CEO of Due.

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"A large percentage, between 90-99%, of people participating in MLMs are likely to lose money, as indicated by the high loss rates and churn rates among new recruits."

MLMs rely on recruiting people with promises of high income, rather than focusing on selling products to end-users.

MLMs rely on recruiting an endless chain of direct sellers to gain unlimited income, with each seller meeting a quota to qualify for future rewards from their recruits.

"MLMs, like Tupperware, often rely on recruiting people with promises of high income rather than selling products to end-users, which can lead to their decline."

LuLaRoe uses a multi-level marketing (MLM) business model, focusing on recruiting distributors and building a network of people rather than just selling clothing.

"LuLaRoe likely operates on a multi-level marketing business model, where members earn income from both personal sales and the sales of their recruits, with the potential for unlimited income through the recruitment of an endless chain of sellers."

LuLaRoe uses a multilevel marketing business model, which has had a negative impact on its salespeople and customers.

LuLaRoe utilizes a multilevel marketing (MLM) business model, where revenue is generated by multiplying the number of salespeople who buy into the company with fees, and the salespeople act as both customers and recruiters.