The multi-level marketing (MLM) business model has seen significant trends and changes in recent years, with some companies experiencing growth while others have faced decline.

Some MLM companies, such as Suntech, have estimated to quadruple their profits to $8 million, indicating a positive trend for the company.

PM-International is another example of a successful MLM company, with over 30 subsidiaries in 40 countries and ranked 10th among top direct sales companies.

The company's success can be attributed to its strong global presence and diverse product offerings.

In contrast, some MLM companies have seen a decline in profits, such as Avon and Tupperware, which have seen significant stock declines.

Avon's stock value fell from $30 to $3 between 2000 and 2019, while Tupperware's stock value dropped over 90% in the last 5 years.

The decline of these companies can be attributed to the shift in revenue from customers to salespeople, with most MLM commissions going to the top 1% of sellers.

The pandemic has had a significant impact on the profitability of companies, with 85% of SMEs' profits falling due to the pandemic.

Many large enterprises also reported a negative impact from the pandemic, with 72% of respondents seeing a decrease in profitability.

The electronics sector saw a 15% profit decrease, while the food sector saw a 14% profit decrease, and the services sector saw an 11% profit decrease.

Some MLM companies have adapted to the pandemic by shifting their focus to online sales and recruitment, such as Amway, which saw an increase in sales during the pandemic.

The company's ability to adapt to the changing market conditions has contributed to its success.

However, other MLM companies have faced challenges, such as LuLaRoe, which has been accused of scamming retailers into debt and operating a cult-like business model.

The company's founders have been accused of using the business as a means of recruiting salespeople and generating revenue through inventory buying, rather than selling to retail customers.

Regulatory changes have also had a significant impact on the MLM industry, with some companies facing fines and legal action for non-compliance.

The Indian government has modified the Consumer Protection Rules to distinguish legitimate direct-selling players from fraudulent schemes.

The direct selling industry in India has grown 12% in 2022-23, with wellness products contributing 73.5% to the industry turnover.

The number of active direct sellers in India has reached 86 lakh, and the country has ranked 11th in the global direct selling ranking.

Overall, the MLM industry has seen significant trends and changes in recent years, with some companies experiencing growth while others have faced decline.

The industry has been impacted by the pandemic, regulatory changes, and shifting consumer behaviors, highlighting the need for MLM companies to adapt and evolve to remain competitive.

The psychological factors that contribute to an individual's likelihood of joining and staying in an MLM company include emotional appeal, false sense of social responsibility, and guilt.

People with irrational thinking are more likely to join MLMs, and these companies use social engineering and psychological manipulation to lure new participants.

The use of emotional manipulation and social influence by MLM companies can lead to financial fraud and exploitation, highlighting the need for education and awareness to prevent such exploitation.

Investment companies, including MLMs, use social media to influence people through targeted ads, which can affect psychological and mood states of users.

Social media has become a major part of daily life, and companies use user data to show relevant news and ads, enabling constant social media usage and influence.

The demographic characteristics most commonly associated with individuals who join MLM companies include young adults, women, and individuals from low socioeconomic backgrounds.

These individuals are often targeted by MLM companies because they have limited financial knowledge and may be more susceptible to promises of high monthly income.

The majority of individuals who join MLM companies are often motivated by a desire for quick money and a better life, and they may feel inferior due to their background.

Low-income individuals are also more likely to join MLM companies, and they may borrow money to pay entrance fees.

The top 1% of MLM participants receive most of the commissions, while the average commission per person is relatively low, at around 45,000 yuan.

MLM companies often use psychological manipulation to recruit participants, and they may target individuals with certain personality characteristics, such as depressive and restless individuals.

The use of social engineering methods and deception is also common in the MLM industry, which can lead to financial difficulties and poor decision-making for participants.

Some MLM companies have been sued for being pyramid schemes and have faced lawsuits over copyright infringement and poor product quality.

Despite the challenges and risks associated with the MLM industry, some companies have reported significant revenue and growth, such as QuiAri, which operates in over 200 countries worldwide.

However, success in the MLM industry often requires hard work, diligence, and leadership skills, and there are no guarantees of financial success.

The MLM industry has also seen a shift towards online sales and retail stores, with some companies offering hybrid models that combine traditional MLM with direct sales.

Overall, the MLM business model has been criticized for its focus on recruitment over sales, and its potential to exploit vulnerable individuals, highlighting the need for critical thinking and caution when evaluating investment opportunities.

Many people who participate in MLMs ultimately experience financial losses, with some estimates suggesting that up to 99% of participants lose money.

As a result, some experts have called for greater regulation of the MLM industry and more transparency around business practices and potential earnings.

In recent years, there has been a growing trend towards simple direct sales models without a recruitment component, as consumers become increasingly wary of MLMs and their tactics.

However, it is unclear whether this trend will continue, or if MLM companies will adapt and evolve to changing consumer behaviors and regulatory environments.

The potential negative psychological consequences of participating in an MLM company include financial stress, decreased self-esteem, and emotional distress.

Participating in an MLM company can lead to decreased self-esteem, as people may experience negative attitudes from others, requiring stress-resistance in the network business.

Some MLM companies, such as LuLaRoe, have been accused of being a pyramid scheme, leading to financial stress and decreased self-esteem for their participants.

The business model of MLM companies can generate revenue by multiplying salespeople, but it can also lead to debt and financial loss for the salespeople themselves.

Inexperienced leadership in MLM companies can lead to shoddy production and quality issues, making it hard for participants to turn a profit.

The market can become flooded with products, making it difficult for participants to sell them and leading to financial stress.

Some MLM companies, such as LuLaRoe, have paid millions of dollars to settle lawsuits related to their business practices.

Participants in MLM companies may experience verbal abuse and emotional collapse due to the training courses, which can lead to dramatic changes in self-worth and normal social identity.

The impact of these training courses can last a lifetime, causing painful feelings and physical discomfort.

To mitigate the negative psychological consequences of participating in an MLM company, it is essential to be aware of the potential risks and to have a support system in place.

Seeking support from others, practicing self-acceptance, and rewarding achievements can help improve self-esteem and reduce the risk of negative psychological consequences.

However, some MLM companies may use subconscious hypnosis to control participants' behavior, making it difficult for them to seek help or leave the company.

Regulations struggle to crack down on such companies due to loose organization and lack of evidence.

It is crucial to approach MLM companies with caution and to do thorough research before participating in them.

Some experts warn of accidental psychological trauma from MLM courses, and participants may experience insecurity, pessimism, and low self-esteem after attending these courses.

In some cases, participating in an MLM company can even lead to the breakdown of relationships, with at least 200 couples reporting divorce due to "coaching skills" courses.

Overall, the potential negative psychological consequences of participating in an MLM company can be severe, and it is essential to be aware of these risks before getting involved.

The multi-level marketing (MLM) business model has seen significant trends and changes in recent years, with some companies experiencing growth while others have faced decline.

Title:

Content: SUIC, Midas's Partner Suntech Has Successfully Introduced Customized Products and Services To Its VIP Multiple Level Marketing Companies. Suntech Estimates To Quadruple Profits to $8 Million. SUIC Midas Will Partner With 20 Global PSP Partners in 2022 To

Autor: Accesswire
21.09.2021, 12:00  |   |   |

NEW YORK, NY / ACCESSWIRE / September 21, 2021 / Sino United Worldwide Consolidated Ltd. (OTC PINK:SUIC) and Midas Touch's PSP partner in Taiwan, Suntech, has successfully introduced the four products and services to its existing VIP MLM customers. …

NEW YORK, NY / ACCESSWIRE / September 21, 2021 / Sino United Worldwide Consolidated Ltd. (OTC PINK:SUIC) and Midas Touch's PSP partner in Taiwan, Suntech, has successfully introduced the four products and services to its existing VIP MLM customers. Suntech estimates To quadruple profits to $8 Million. SUIC Midas Touch will partner with 20 global PSP partners in 2022 to promote these products and services.

Suntech Taiwan is the largest Taiwan O2O Company, with over 50,000 Merchants and 15 Million users. Suntech Taiwan is going to lead these VIP MLM companies' enterprise-wide business transformation and design exclusive product and service packages. These MLM companies include: PM-International, Taiwan, which is a branch of PM-International AG, Luxembourg. It has more than 30 subsidiaries in more than 40 countries. It provides high-quality nutritious and fitness foods and beauty care products carried through its own brands. PM-International has been recognized as one the Top 100 Direct Sales companies worldwide and is currently ranked 10th in 2021; and the Tsingshan Group of Companies has ten major business groups with a global scope covering more than 30 countries around the world. The holding group has captured the focus of major international media. Among the accolades it has gathered over the decades, its biotechnology company has received high recognition and won, among others, the Taiwan Biotechnology Award, the Taiwan's No. 1 Brand Award, and the Taiwan Golden Quality Award.

"Thanks to the breakthrough innovations and products of SUIC, Midas Touch, Suntech is estimating an increase in net profits to four-fold, expected to reach $8 million on its $1 billion sales turnover. Midas Touch products and services provide instant, emergency funds for our partner merchants and customers. This has been a big success especially during this critical period of pandemic. We are set to increase customer lifetime value with our advanced DeFi business models and strategies," says Joa Chen, Suntech's General Manager.

SUIC Midas is now finalizing and identifying additional 20 PSP partners this year through 2022, with over two million merchants that will bring an aggregate sales turnover of $20 billion, generating $8 million profits for each of the PSP partners as a result. SUIC Midas Touch will fully support these 20 PSP's to earn a total of $160 million in net profits and achieve a total $20 billion in aggregate sales turnover.

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SUIC, Midas's Partner Suntech Has Successfully Introduced Customized Products and Services To Its VIP Multiple Level Marketing Companies. Suntech Estimates To Quadruple Profits to $8 Million. SUIC Midas Will Partner With 20 Global PSP Partners in 2022 To NEW YORK, NY / ACCESSWIRE / September 21, 2021 / Sino United Worldwide Consolidated Ltd. (OTC PINK:SUIC) and Midas Touch's PSP partner in Taiwan, Suntech, has successfully introduced the four products and services to its existing VIP MLM customers. …

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Some MLM companies, such as Suntech, have estimated to quadruple their profits to $8 million, indicating a positive trend for the company.

PM-International is another example of a successful MLM company, with over 30 subsidiaries in 40 countries and ranked 10th among top direct sales companies.

The company's success can be attributed to its strong global presence and diverse product offerings.

In contrast, some MLM companies have seen a decline in profits, such as Avon and Tupperware, which have seen significant stock declines.

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's stock value fell from $30 to $3 between 2000 and 2019, while Tupperware's stock value dropped over 90% in the last 5 years.

The decline of these companies can be attributed to the shift in revenue from customers to salespeople, with most MLM commissions going to the top 1% of sellers.

The pandemic has had a significant impact on the profitability of companies, with 85% of SMEs' profits falling due to the pandemic.

Title:

Content: [Hong Kong economy] 85% of SMEs' profits fall by a quarter due to the epidemic, their profits fall by 31% or more
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Companies have difficulty connecting with overseas buyers offline during the pandemic.
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The profits of 85% of SMEs also fell due to the epidemic, and one quarter of them believed that profits fell by 31% or more.
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Industry Large Enterprises Decrease (%) Small and Medium Enterprises Decrease (%)
Electronics 15 15
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Many large enterprises also reported a negative impact from the pandemic, with 72% of respondents seeing a decrease in profitability.

The electronics sector saw a 15% profit decrease, while the food sector saw a 14% profit decrease, and the services sector saw an 11% profit decrease.

Some MLM companies have adapted to the pandemic by shifting their focus to online sales and recruitment, such as Amway, which saw an increase in sales during the pandemic.

Title:

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Nu Skin’s Biggest Customer Base Is in China. Now It’s Accused of Spreading Covid.

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The Covid pandemic was good for the business of multilevel marketing firms like Nu Skin Enterprises, as furloughed workers tried to make ends meet by selling vitamins and skin creams from home. Salespeople swelled the bottom of Nu Skin’s marketing ranks, and its stock tripled in value from March 2020 to a June 2021 peak of $62, before sliding back to a recent $47.

Now Covid is a problem for the company in China, the nation where Nu Skin (ticker: NUS) gets its largest number of customers and more than 20% of its revenue. A...

The company's ability to adapt to the changing market conditions has contributed to its success.

However, other MLM companies have faced challenges, such as LuLaRoe, which has been accused of scamming retailers into debt and operating a cult-like business model.

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.

The company's founders have been accused of using the business as a means of recruiting salespeople and generating revenue through inventory buying, rather than selling to retail customers.

Regulatory changes have also had a significant impact on the MLM industry, with some companies facing fines and legal action for non-compliance.

Title:

Content: The fair meeting on the 23rd called the committee meeting to pass, Berger Incense Co., Ltd. engaged in multi-level marketing, recruitment of limited ability to act as a distributor, without obtaining the written permission of its legal representative in advance, and attached to the participation contract, violating the provisions of Article 16, paragraph 2 of the multi-level marketing management law, and fined NT $100,000.
Fairness said that Berger Incense Co., Ltd. reported in May 2009 to engage in multi-level marketing, sales of essential oil related products.
On September 27, 110, the association sent a staff to the business office of Berger Incense Co., Ltd. to conduct a business inspection and found that the company had recruited a person with limited capacity as a distributor without obtaining the written permission of its legal representative in advance, which has violated the provisions of Paragraph 2 of Article 16 of the Multilevel Submission Management Law.
The Fair Society calls on people with limited ability to engage in multi-level pyramid selling to obtain the consent of their legal representative in advance to avoid breaking the law!
# Incense # Restricted Behavior # Berger # Distributor # Fair

The Indian government has modified the Consumer Protection Rules to distinguish legitimate direct-selling players from fraudulent schemes.

Title:

Content:     The Economic Times daily newspaper is available online now.

    Direct selling industry grew 12% in 2022-23, crosses Rs 21,000 crore in turnover: IDSA

    Synopsis

    Indian Direct Selling Association and Kantar's report revealed a 12% industry growth to Rs 21,282 crore turnover. The sector aims to strengthen with government support, distinguishing from fraudulent schemes through regulatory amendments.

    India’s direct selling industry grew over 12% year-on-year in 2022-23, clocking an overall industry turnover of Rs 21,282 crore, an annual survey report released by the Indian Direct Selling Association (IDSA) and compiled by market researcher Kantar said on Wednesday.

    The report noted that the sector grew 8.3% by CAGR in the four-year period between 2019-20 and 2022-23.

    According to the report, wellness and nutraceutical products contributed 73.5%, while cosmetics and personal care accounted for 11.3% of the industry’s overall turnover. The number of active direct sellers touched around 86 lakh from 84 lakh in 2021–22, the survey said.

    Vivek Katoch, chairperson of IDSA, said in a statement: “The direct selling industry is poised to strengthen further in the years to come on the back of a promising regulatory framework by the government.”

    India ranked 11th in the global direct selling ranking in 2022, up from 15th in 2019.

    Direct selling companies sell to consumers through direct-seller members and not through retailers. Amway, Oriflame, Herbalife and other direct selling companies have been pushing for tighter regulation and clarity from the government, to differentiate them from multi-level-marketing ponzi companies.

    Mid last year, the consumer affairs ministry modified the Consumer Protection (Direct Selling) Rules, 2021, through a notification, to distinguish between fraudulent pyramid and money-circulation schemes and legitimate, direct-selling players. IDSA executives have said further clarity is needed in the definition of 'network of sellers'.

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    Stories you might be interested in

The direct selling industry in India has grown 12% in 2022-23, with wellness products contributing 73.5% to the industry turnover.

The number of active direct sellers in India has reached 86 lakh, and the country has ranked 11th in the global direct selling ranking.

Overall, the MLM industry has seen significant trends and changes in recent years, with some companies experiencing growth while others have faced decline.

The industry has been impacted by the pandemic, regulatory changes, and shifting consumer behaviors, highlighting the need for MLM companies to adapt and evolve to remain competitive.

The psychological factors that contribute to an individual's likelihood of joining and staying in an MLM company include emotional appeal, false sense of social responsibility, and guilt.

Title:

Content: Multi-level Marketing scheme "disguised as an advocacy organization" draws criticism

Here's another multi-level-marketing scheme to be aware of. It's called "Trades of Hope" and Hannah Alonzo describes it as an MLM scheme "disguised as an advocacy organization." Here's how the Trades of Hope website pitches the business to potential "partners" and "advocates" (that's what they call folks who join the MLM to sell merchandise and recruiting additional sellers for their downline):

"Create job opportunities for women leading their families out of poverty and human trafficking by shopping ethically made home decor!"

The company works with "Artisan partners" across the globe, who create the products that are then sold by folks who sign up for the MLM. Trades of Hope describes their relationship with the artisans:

We pay our Artisan partners 100% of their asking price (they set the price!) for a product order before you even see that product on our website! We are in a business partnership with them. Not a charity. Our Artisans receive 3 to 6 times what they would normally make in their region. The Fair Trade communities that are helping them get their product to market follow guidelines of checks and balances to give back, not just to the Artisan, but to their community as a whole as well. This includes things like wells, children's schools, education for adults, land, and developing homes. It is life changing. Fair Trade is about providing a living wage for those in extreme poverty and giving them a chance for a better life.

If the business just worked with artisans to sell their products to the public, I'd have no problem with it, and would actually see it as a positive thing. However, Trades of Hope doesn't simply support artisans—its business model is based on recruiting sellers who then recruit other sellers, which makes it a typical MLM. The recruitment page of the Trades of Hope website clearly states: "Enjoy The Rewards and The Partner Does All The Work!" The problem is, though, that very few people are actually "enjoying the rewards," as it's been shown time and again that 99% of people who participate in MLMs lose money.

Over on Reddit, in the terrific subreddit r/antiMLM ("Stop MLM schemes from draining your friends dry. Multi Level Marketing (MLM) schemes are a drain on our society. Its participants either build the pyramid taller or get squashed by it.") I found some interesting discussions of Trades of Hope. Here's some insight from a former member:

I escaped from them. It's basically an MLM. You don't need to keep product on hand, you have a personal seller website and you pressure people to host parties. Their schtick is that they sell items made by people in developing countries so they use a lot of guilt and religious crap to pressure people into buying the items. We were told to post things on Facebook like "help this family out of poverty one bracelet at a time" etc. I finally noped out after realizing that their method is stupid and sustainable development can be found in ways that don't require me to guilt my friends and family into having stupid online parties. As MLMs go, the buy in is $150 so people don't lose their houses over this. The website is $12 or $13 a month. So not like lularoe requiring $4000+ buy ins but it's def an MLM, there's a lot of pressure to recruit and maintain a downline.

If you want to learn more about Trades of Hope, Hannah Alonzo recently posted a terrific deep dive into the company. Her analysis includes a critique of the company's recruitment structure, as well as critical commentary on how the entire operation oozes with "White savior complex."

People with irrational thinking are more likely to join MLMs, and these companies use social engineering and psychological manipulation to lure new participants.

Title:

Content: Usually, speaking about the financial pyramid, it is understood the involvement of people in business, where the basis of income is the attraction of new participants with a financial contribution, said Roman Sidorchuk, Professor of the Department of Marketing at Plekhanov Russian University of Economics, to the correspondent of IA REGNUM.
Pyramid
“For this kind of participation, mainly“ recruited ” people with a “disturbing ” psyche, who are dominated by an irrational type of thinking.
Given the fact that in these circumstances, behind the proposals of the organizers there is always a deception in the involvement of the participant, it is impossible to talk about marketing, which is usually guided by certain ethical standards (for example, the ethical code ESOMAR, the European Community of market researchers and public opinion).
Here we should talk about the methods of social engineering, when the goal is not to meet the needs of the consumer, as in marketing, but the psychological manipulation of people in order to commit certain actions.
In this regard, the methods of this kind of manipulation will constantly change, adapting to the interests of the potential audience.
The use of computer games is a convenient format for manipulation.
Moreover, people who are often fixated on computer games experience depressive and restless states, and become more malleable to the external influence of the gaming community, ” the expert believes.
As reported IA REGNUM, in Russia there is a new type of financial pyramids, said the head of the Department of combating unfair practices of the Central Bank of the Russian Federation Valery Lyakh.
See also: Bank of Russia warned about the emergence of gaming financial pyramids

The use of emotional manipulation and social influence by MLM companies can lead to financial fraud and exploitation, highlighting the need for education and awareness to prevent such exploitation.

Title:

Content: Chairman of the Board of Directors and Editors
I'm sorry.
Mohamad Elbaz
Chairman of the Board of Directors and Editors
I'm sorry.
Mohamad Elbaz
Decker Sochialji
I noticed the spread of a kind of electronic monument taking advantage of the sites and platforms of "social networking", so I decided to classify it and add it to the series I started a while ago with the article "Decker Aweel", and then "Decker Mzajanji".
And I added to them today, "Decker Sochialgi."
The "howling drunkard" is characterized by having many deceptive and false masks through which he commodifies himself to be able to control a new victim.
Someone takes advantage of his looks, and some take advantage of his social status and his suit to suggest an unreal status.
Those in a social and humanitarian crisis such as widows, divorcees and the elderly are always targeted to control them, stealing their sun, joy, humanity and feelings before taking their money and property.
The male is the one who deals with the woman according to his temperament and under his request at any time and any place.
He married four, and he had no way of what he could have.
Each one is different from the other because he does not like repetition, each woman has a quality and an advantage other than the other, which represents him diversity and multiplicity according to his mood and renewal so as not to get bored.
So, what does the Sushi do?
The normal and usual in social media dating, that you know the person who owns that page directly, or that he is friends and co-workers, and some of them may be mutual friends of friends of yours and you do not know them from near or far, and sometimes it is on the compatibility and admiration of the owner of a certain profile for his views or because he is a famous person.
Dokker Soshialji is waiting for the pages of girls and women to exploit them psychologically, morally and financially after collecting a lot of information about them through what they publish on their personal pages of pictures, opinions and comments, so he can draw the features of their personalities, whether they are well off, unrelated, separate, lonely, suffering from problems or looking for love and safety.
These are all cases preferred by the "Soshialgi" to fish in turbid waters, and deal with them as prey allowed to hunt and prey and exploit without any regard for being human first, and may be what suffer is the same as what suffered by their closest to him, whether his sister or mother.
The obvious question for this songwriter is, “What are you doing? ”
Answer: Girls and women work.
He doesn ’ t have a specific job, but he lives on social media to get privileges and services, buy a new car, go to parties, beaches and outdoor recreational trips.
The victims are a long list of girls and women.
The first is required to pay the rent of the assembly apartment!
For the first time I saw you, I lived in my place, but I do not have to pay the rent!!
And he says for a second, you need to equip the apartment with furniture and appliances!
For the first time I saw you, my mind got lost and I didn & apos; t find the pillow and the quilt!!
The third one is the new car!
For the first time I saw you, I turned the streets and looked at you in the nights, and I wanted to come to you, but the installment made me afraid to move in Arabic and the bank would reserve it!!
The fourth takes care of his expenses, giving him expensive gifts and booking international flights!
For the first time I saw you, I felt something strange that takes me away and turns the world with it
All these girls and women have been cheated on in the name of love and jeddah and a man who listens to them and exploits their need for safety.
They're all victims of sushialgi.
And one by one under false and deceptive labels.
First and foremost, patience.
The Soshialji has penetrated and become a monster.
and become a thing for all who don & apos; t have a thing
We need to educate the girls and women victims.
Warn them of what they post on social media sites with joy and good faith of personal and family photos and others.
And review their own information so that they are not exploited by the Soshialji and others.
Social media is not love, security and stability, and it is not a real expression of someone who approaches you or courts you, and not a description of his creativity and distinctive personality.
It is a virtual world that is manipulated by the sushialgi to exploit you and others, and then you find yourself in the ruins of a human being that has been consumed to the greatest extent, perhaps the simplest of which is the financial fraud.
A kilo of words is a penny, and a gram of action is in the millions.
Like men.
Shame!
The weeping drinker.
Shame!
The moody drinker.
Shame!
Dokker sushialji..
Shame!

Investment companies, including MLMs, use social media to influence people through targeted ads, which can affect psychological and mood states of users.

Title:

Content: General Supervision
Elham Aboul Fath
Editor-in-Chief
Thank you for your patience.
General Supervision
Elham Aboul Fath
Editor-in-Chief
Thank you for your patience.
Amal Ibrahim explains the impact of social media and mobile phones on our family relationship
Dr. Amal Ibrahim, a family relations consultant, said that in the last two decades, societies have undergone many changes due to the unprecedented use of social media networks.
She continued Amal Ibrahim during her meeting with the program "Morning Egyptian", with the media Hisham Assi, broadcast via satellite "mbc masr 2", at first people used it a few hours but now it has become a major part of the day and all the time people next to her mobile phone follow messages that affect her psychological and mood.
Investment Companies
She added that investment companies began to influence people through their dreams by showing ads and news about everything a person dreams of and looks for, saying: "If someone himself loses, he will start showing him medicines and prescriptions," and increase their profits and all that affects people, society and family relations.

Social media has become a major part of daily life, and companies use user data to show relevant news and ads, enabling constant social media usage and influence.

The demographic characteristics most commonly associated with individuals who join MLM companies include young adults, women, and individuals from low socioeconomic backgrounds.

Title:

Content: [Street Industry Watch] In the Year of the Pandemic, many people joined the "marketing" to pull down the line, but nearly half of the revenue was used to pay "multi-level" commissions.
Photo Credit: Central News Agency
What we want you to know is
At the same time, the body product channel and product spokesperson can further bring the "offline", which is the start of expanding the business and crossing the threshold of receiving commissions.
But this threshold seems easy, but not everyone can climb, because whether it is old or new distributors, most of them only contribute to the commission of the supporting role......
In the summer of 2020, it is supposed to be the graduation season of college students and the time when social newcomers are pouring out of the cage, but I saw a youthful face at a few lively junctions in the business district of Banqiao, and started the work of “listing people ” for housing construction.
Single-handed advertising placard, carrying a backpack leaning against the road light pole, the other holding a thin, seemingly split reference book, on the hot sun, earning the card holder's hard hourly salary, and paving the way for future job hunting.
When a PT (Part Time, Part-time, Part-time, Part-time) job that was originally labeled as a middle-aged, second-degree employment face, there were many young faces, can not help but make people shiver in the heat of the day!
The virus has hit households and disrupted the job market, affecting youth employment.
We have to admit that the epidemic has disrupted the pace of new people entering society and seeking jobs. Although it is at a time when the virus has not really invaded the door, the job market has been chaotic.
According to the Ministry of Labor ’ s “Youth Employment Status ” report, there are about 280,000 college graduates in 2020, a decrease of 5.4% compared to 2019. This reflects not only the decrease in the number of children and the decrease in the number of college students, but also the explosion of life extension in 2020. If further deduction is further deducted, the number of people who can work (including military service) is a low of nearly 5 years (223,000), a decrease of 12% compared to 2019. And...
As of the end of January 2021, only 68.3%, about 152,000 people, of the post-secondary students who graduated in 2020 and are working people, joined the ranks of labor / agriculture / public insurance, which is not only a low point in the past five years, but also a decrease of 24% compared with the previous year.
In other words, there are many college graduates, after more than half a year of job search, still have not successfully entered the workplace; the pressure of job search and living economy, so that they have to make very choices in this extraordinary period.
The job market is cold, and marketing continues to expand its organization, becoming a potential employment option for new people in society.
In 2021, the virus officially "invaded the door" in May, before graduating from college in the new year.
The alert of the epidemic, so that this year's job market has a cold wind, but also the unemployment rate in July this year (4.53%), blowing up the same period of high in the past decade, recently graduated social fresh people, inevitably have to face the fear of graduation, namely unemployment.
However, there is a saying in the workplace: Despite the economic downturn, business jobs such as insurance and distribution are always recruiting.
If this is not true, we can try to turn off or turn on the query function of the above industries on the job search platform to achieve a full personal experience.
However, in 2020, the number of people registered for the personal insurance business survey (85,000) increased by 5% compared to the previous year, and the number of new entrants to the marketing business is also a million people.
This is the type of occupation that people need to earn life, some people are joining is no retreat, but some people are carrying a dream forward, but the dream is very rich, the reality is very bones, when we dream in the winter, do not forget to pragmatically understand the mode of operation of the industry.
Today, let ’ s talk about selling!
Most people's stereotypes of marketing remain in the "brainwashing" of marketing conferences, constantly inculcating that this is a "personal business," getting rid of being hired as social animals, and directly attacking the freedom of wealth, and in addition, trying to give individuals the self-esteem and ability to think independently, suggesting that "thinking for themselves, not having to discuss with others."
Perhaps, some people have experienced this process of marketing to pull members off the line, some people join, some people feel that it is a "cult", but making money, quality of life, and self-empowerment (Self-empowerment) these material and psychological skills, is indeed for most people have a certain hypnotic effect.
However, most of our understanding of marketing is just the “recruitment ” discourse, and we do not have a deep understanding of how it works.
Perhaps, when we understand the logic of the industry, we can better understand why the so-called brainwashing conference is a starting point for marketing recruitment.
Multi-level marketing requires multiple distributors as sales and marketing channels
According to the Fair Trade Commission ’ s “Multi-level Marketing Business Development Survey ”, nearly 3.5 million distributors (each“ individual ” who joined members or purchased goods is an independent distributor) of 314 marketing entities (such as Anli, Ruxin, etc.) in 2020 generated a turnover of 98 billion yuan, a slight increase of 5% over the previous year. In contrast to the population over 20 years of age (more than 19.4 million people), about one in six people join the ranks of distributors.
Since all distributors replace all types of retail channels, they not only have the function of the channel, but also have the function of marketing, that is, word-of-mouth marketing, so whether they emphasize themselves as retail (sales) orientation, product recommendation (head-pulling) orientation, or emphasis on membership, they are ultimately based on "people" and "organizational hierarchy".
And the product channel and marketing costs saved by the marketing business are converted into the commission of the distributor.
Therefore, when we contact distributors and ask them why they are involved in the marketing industry, they will almost unanimously reply, "The product is great!"
Distributors continue to pay for new members by pulling down the line, expanding the organization and expanding the commission
That being said, it ’ s one thing to see how great a product is in the domain of a distributor, and constantly adding new blood is the highest goal for continuous marketing, expanding the organization, and increasing revenue and commission revenue.
Similarly, according to the Fair Trade Association report, the number of new entrants to the market in 2020 is about 1 million, and for the past five years, the number of new entrants has remained at around 1 million each year.
And in 314 marketing businesses, 96% of the joining system is to take "conditional join", of which, the most important is "order goods" (62%), "pay a deposit or membership fee" (59%), so "conditional join" is not only contributing to the marketing business and the top level of the sales (the one who pulls you in), but also contributing to the level of the commission.
In contrast, if someone joins, someone exits. The number of MLM merchants who quit in 2020 is about 450,000, and the number of exits in each of the past five years has been around 400,000 to 500,000.
The main reason for exiting is “non-renewal of contract ” (83%), which means no longer operating, no longer consuming, and the product is no longer considered“ great ”.
However, in this process, there will always be new blood distributors who will contribute to the expansion of the organization and the commission generated after the consumption of the product.
Whether old or new distributors, most are only supporting players who contribute commissions
As has been mentioned, the distributor at the same time with the product channel and product marketing (endorsement) people, their own recognition of the product, use, and purchase, to become a new member of the body and teaching.
Of course, once you can further bring in new members, new distributors, or offline, it is the beginning of expanding your business and crossing the threshold of receiving commissions.
It seems that the threshold is easy, but not everyone can climb it.
According to a survey conducted by the Fair Trade Association, 222 of the 314 marketing businesses (about 70%), and more than 60% of its distributors will make stable orders to the company; however, only 27% of all marketing companies (about 960,000 people) receive commissions, and the average commission per person is 45,000 yuan.
Therefore, most distributors who order goods either maintain their status as distributors by buying products, or sincerely recognize and continue to use the products; and by bringing in new distributors, order sales, and achieve a commission threshold, and can earn a stable salary or even become rich in this industry, not only are rare, but also the successful cases seen in various conferences or education and training survivors. "The Beautiful Misunderstanding We Have".
It doesn ’ t matter if the product is worth the price
In addition to the threshold, this kind of personal marketing and sales channels, to achieve the "multi-level" (that is, constantly expanding the organization down the line) of the business of distribution, not only eat personal interpersonal skills, "multi-level" commission distribution will indirectly increase product prices.
According to a survey conducted by the fair society, the import cost of the pyramid scheme business accounts for only 28% of the turnover, but the commission accounts for 44% of the turnover, in other words, the real cost of selling a commodity of $100 is only $28, $44 is used as the commission of the pyramid scheme business, and the remaining $28 is the administrative expenses and profits of the pyramid scheme. Whether the essence of a product is value for money is one thing, the marketing business will compress its own profits, expand its commission expenditure, and recruit and expand the organization with a strategy of large is beautiful, so that we can find: there are so many people who have joined the ranks of marketing!
Marketing has always been a very special industry, in which a small number of people have been able to earn their fair share of commissions, and become the mainstay of business operations, but the vast majority of people are only a supporting part of this multi-level marketing structure, and by paying membership fees, buying and using products, they become a part of the source of commissions.
Back to the intention of writing this article, no matter how difficult the job search for new people in society during the epidemic, I hope that by understanding the operation mode of an industry, I can assess whether to use the marketing industry as the first job to enter the society.
Through the Fair Commission report, we have gained a profound understanding, no matter how many of these people successfully earn high commissions and create successful careers, this data is hinting at us: if this industry is the main occupation, not only requires a certain degree of interpersonal relationships and skills, there may be a period of social novices can not understand life or career experience.
Source: Ministry of Labor “Youth Employment Status ”, Fair Trading Commission“ Multi-level Marketing Business Development Survey ”
Extended reading
Editorial responsibility: Ding Zhaojiu
Editor ： Weng Shihang
Tags:

Title:

Content: Living

How LuLaRoe cost some women their homes, cars, savings, and marriages

In 2015, Roberta Blevins was a busy hairstylist, traveling between San Diego and Los Angeles for work — and struggling to find balance between her career and co-parenting a four-year-old and nine-year-old.

Then she heard about LuLaRoe from a Facebook mom’s group. The California clothing company — known for its brightly patterned leggings and dresses — offered sales consultants a way to “earn full-time income for part-time work” from the comfort of their own homes.

For Blevins, it sounded like a dream come true.
 “I could sell leggings,” Blevins, now 40, remembers thinking. “It’s so easy. Everyone wears them.

“What I know now is that it was a scam,” she told The Post.

From 2014 to 2019, LuLaRoe leggings were pervasive on social media — slavishly peddled by women seeking the holy grail: setting their own hours and working from home, with the promise of big money. It was a classic multi-level marketing set-up — or, as the Washington State Attorney General’s Office claimed in a 2019 suit against the company, a “pyramid scheme.”

It’s now the subject of “LuLaRich,” a four-part docuseries streaming on Amazon Prime that offers a look inside the brand’s explosive growth and how it led to fraud accusations, lawsuits and, ultimately, consultants losing money, cars, homes and even their marriages.

Directors Jenner Furst and Julia Willoughby Nason also made “Fyre Fraud,” a Hulu documentary about the notorious 2017 musical festival, and say the subjects have a lot in common.

Both stories are filled with “delusions of grandeur — and this type of incessant entrepreneurship that is promoted from influencers to [strangers] on Facebook,” Nason told The Post.

By September  2017, just a little over a year after she signed on, Blevins — who hosts the podcast “Life After MLM” (as in multi-level marketing schemes) — had seen the light. LuLaRoe was a pyramid scheme selling empty girl-boss dreams. She quit.

“There were red flags from the beginning,” Blevins said.

LuLaRoe sprang from humble beginnings. Around 2012, DeAnn Stidham — who previously organized clothing parties for retailers — started selling homemade maxi-skirts from the trunk of her car.

Within five months, the vivacious Californian had moved 20,000 pieces, she says in the docuseries. In 2013, DeAnn met a woman in Utah who said she could unload a bunch of the skirts to her friends.

DeAnn called her husband, Mark. “[I] said, ‘What can I do to make it valuable to her?’” she says in the docu-series. His advice: “You sell them to her … and she gets to make double the money [selling them to her friends].

“It was instant cash and instant opportunity,” she added.

That woman became the first sales consultant for LuLaRoe, which is named for  the Stidhams’ granddaughters Lucy, Lola and Monroe.

While old-school multi-level marketing brands like Tupperware or Amway were all about women — often, stay-at-home moms — hosting parties to push product and recruit other women as sales people under them, recent counterparts such as the skincare line Rodan + Fields  rely on social media. Even the actress Ione Skye got into multi-level marketing a few years ago, selling Doterra essential oils with her singer husband Ben Lee and promoting them on Instagram and YouTube.

Consultants took to Facebook to advertise LuLaRoe leggings parties and flaunt the financial freedom, big homes and fancy cars their new gig provided.

The message spread like a wildfire. By 2016, LulaRoe had raked in more than $70 million.

It worked like this: Once a woman’s — or, sometimes, a husband-and-wife team’s — application was accepted, they paid the start-up costs (as much as $15,000) and started hustling the clothes. Typically, they marked the leggings up to $25, after having bought pairs for $10.50 each wholesale.

When Blevins joined in February 2016, buying in for an initial fee of $9,000, there was a leggings shortage — so she had to shell out more money to buy them off other consultants.

At the time, eager wannabe consultants were waiting anywhere from 90 to 100 days for approval because the company didn’t have enough manpower to keep up with demand.
LaShae Kimbrough, 43, was part of the onboarding team. She’d collect new consultants’ money — which desperate women raised by any means necessary, including taking out loans, opening zero-interest credit cards and even selling their breast milk.

Kimbrough 43, told The Post that her team was bringing in at least a $1 million dollars a day.

Consultants were compensated for recruiting new sales people to their teams. They received a cut of onboarding costs paid by their protégés who, then, brought in people under them.

In the docuseries, married couple Tiffany and Paul Ivanovsky said that, at one point, they had 1,100 people on their team and raked in anywhere from $22,000 to $42,000 a month in bonuses over the course of a year.

While the gospel of LuLaRoe spread coast to coast, the company at large was flying by the seat of its pants. The Stidhams, who have 14 children between them, installed their inexperienced offspring in executive roles.

“Did any of them have a clue how to run a company of this size? No,” former employee Derryl Trujillo says in the film.

Blevins grew skeptical when she started receiving shipments with damaged leggings — including wet pairs that she described smelling like “chlorine and death.” On Facebook, more customers were posting about how their LuLaRoe clothing was ripping on the first wear.

Sources in “LuLaRich” say it was emblematic of larger issues  — like inexperienced leadership and growing too big too fast, which led to shoddy production.

“It was like flying the plane while you’re still building the plane. And you don’t even know how all the pieces of the plane work. And you don’t even know how to fly the plane. You’re not a pilot,” said Sam Schultz, DeAnn’s nephew and former employee. He was hired to produce company cruises and retreats where acts like Katy Perry and Kelly Clarkson performed.

On one cruise for top sellers, Blevins complimented a fellow consultant on how good she looked in a swimsuit. “She said she had gotten ‘the weight loss surgery’ in Tijuana,” Blevins recalled. “She called over a mentor leader who told me all about it.”

According to former consultant Courtney Harwood who appears in “LulaRich,” DeAnn pressured top performers to travel to Tijuana and undergo gastric bypass surgery performed by her own doctor.

For Blevins, who was growing wary of a culture that was similar to religious fanaticism, it was another reason to defect. “I was like, ‘How do I get away from this conversation? Do you really think I need [the surgery]?’. That whole trip was very culty.”

Kimbrough believes DeAnn was feeding off other women’s money, hard work — and their adulation. “[DeAnn] was able to come up with a recipe to have people groveling at her feet. I give them credit for it because it happened for a long time, and they made damn good money.”

Eventually, there were more consultants than interested buyers. The market was too flooded  to turn a profit.

And the lawsuits had started pile up — numerous ones over copyright infringement, claiming LuLaRoe stole artwork to print on leggings. A 2017 class-action lawsuit challenged the company’s return policy, with customers alleging the leggings were poor quality. The brand was also sued by a former supplier  over unpaid bills

As morale started to wane, the brand implemented a policy where consultants could send back stock for a  refund of their wholesale costs. The change led to an exodus.  “I believe LulaRoe paid over a hundred million in refunds during that time,” Blevins said.

She added that the cancellation of that policy, in late 2017, led to her breaking point because she couldn’t handle people on her team saying they were going to lose their homes if they couldn’t get refunds.

In 2019, the attorney general of Washington state filed a suit against LuLaRoe saying it was a pyramid scheme that bilked thousands of people out of millions of dollars. The case was settled in 2021, with the brand paying $4.75 million.

When all was said and done, Blevins shelled out over $78,000 for inventory and sold about $83,000 — a $5,000 gross profit. She earned about $65,000 in bonuses for signing up other women, something she now regrets. But she also took out a loan to buy the clothes and still has credit-card debt.

Harwood, who was one of the top consultants, had purchased a new house and matching Chevy Tahoes for her and her husband — all to keep up appearances and look successful on the LuLaRoe food chain, and because she believed the money would keep rolling in. When she left in 2018, she had to file for bankruptcy, losing her home, vehicles and even her marriage.

“I thought I was better than everyone else,” she tearfully says in the series.
Consultant Ashleigh Lautaha, who left the company, says in the doc that she got so wrapped up in the LuLaRoe culture that she only had time for either her family or her job. Her marriage broke up.

“The company got bigger than [the Stidhams], and what they could keep up with,” co-director Willoughby Nason said of the couple. “They were putting out fires left and right.”

But she also sees how desperate women got caught up in the drive for success.
“There was a corrosive element of greed that was beyond them.”

These individuals are often targeted by MLM companies because they have limited financial knowledge and may be more susceptible to promises of high monthly income.

Title:

Content: Can a monthly income of 100 thousand? Public housing man to find quick money to borrow 80 thousand rich boy to be a marketing girlfriend to persuade me not to listen to the end of the breakup
Author: Anzuna
Published: Updated:
Making money to make a better life for your family and partner is certainly something to appreciate, but it ’ s also the right way to do it.
A Hong Kong woman earlier issued a message in the forum, saying that her boyfriend, who came from public housing, felt inferior to his background and was determined to make money so that she and her family could get a better life.
However, in order to make quick money, her boyfriend joined the marketing company, and borrowed 80,000 yuan from the financial company, convinced that he could build a team and make a lot of money. The landlord decided that it was a pyramid scheme, but she did not listen to her boyfriend in any way, "he thought that he was not good at this opportunity". Public discussion.
A Hong Kong girl earlier posted that her boyfriend borrowed money to join a marketing company in order to find quick money. The two eventually broke up due to disagreement.
Download “Hong Kong 01 ” App to see what ’ s happening in the city
The Hong Kong woman posted on the Dcard forum with the title "I know I have to step on it", saying that her boyfriend feels inferior to his background in public housing, and from time to time, he has worked hard to make more money in order to make a better life for her and her family, "Because he is not good at school, his job is very difficult to get to the top."
Early ex-boyfriend introduced by a friend to join the marketing company, was told that "into the go can slowly rise up, about 4 months will be a monthly income of 100,000", but to pay the entrance fee 80,000 yuan.
In order to make quick money, her boyfriend went to the finance company to borrow money to build a team. "He said that he must have money to make, but he wanted to recruit a team, and with a team, he could sit around and have money, and he thought that he was missing this opportunity to develop."
The Port Confession Full Text:
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The Hong Kong woman said that "stupid first heard that it was a fraud case", thinking that her boyfriend had fallen into the stratospheric sales trap, "I am really stuck after listening, why do people really believe in people's things, and also want that is the important person in me".
She admitted that it was difficult to accept that her boyfriend had been cheated, saying that the other party had repeatedly persuaded him not to listen, and asked her to support him, "He said that he would definitely do something to show me."
In the end, the two people broke up because of disagreement, and the Hong Kong woman could only send a message saying her heart and blessing each other. "I understand that you will do these things first because you love me and your family, and I also understand that because of you, there is no income at home, so you want to do something to not let me die."
She stated that she is now maintaining a friendship with the other person, and said that she has found a lot of evidence, hoping that the other person will understand that she has fallen into a scam, "hoping that she can really come out, and will not come back together and see what she knows."
Hong Kong Girl refers to her boyfriend who is convinced of the marketing business, and even went to the finance company to borrow money to build a team, and the two people did not agree to the final break up.
Some people think that the boyfriend alone believes in the promotion of money, has proved that he is difficult to rely on, suggesting that the landlord should forget the other person, "It is not because of stupidity, but because of greed. Greed blinded him, greed makes him feel that he is not one of the smart people to find money", "Everyone values are different, in fact, good. It ’ s hard to see what ’ s wrong with him, but he can ’ t do anything about it, and he really hates steel, so don ’ t be kind to be soft. ”
Recommended reading: Hong Kong woman inculcates boyfriend after making insurance sex change
In a recent interview with the BBC, she said that her boyfriend, who had recently entered the insurance business, had changed his temperament in the course of training, and that he only wanted to make money, and even worshipped the boss of the company, and that he was worried that his boyfriend would be too trusting or would be cheated, and even break up his six parents.
Hong Kong woman 's complaint ▼ ▼ ▼ ▼
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In the same scene, the old classmates suddenly contacted and invited to listen to the marketing seminar, eye-catching tai men a move to counter and earn a lot of business
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Recommended reading: 5 years did not see the sudden message: good to hang you Hong Kong men found the old goddess into insurance broker! 【 Click the picture to enlarge to see the story through ▼ ▼ ▼ ▼ 】
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The majority of individuals who join MLM companies are often motivated by a desire for quick money and a better life, and they may feel inferior due to their background.

Low-income individuals are also more likely to join MLM companies, and they may borrow money to pay entrance fees.

The top 1% of MLM participants receive most of the commissions, while the average commission per person is relatively low, at around 45,000 yuan.

MLM companies often use psychological manipulation to recruit participants, and they may target individuals with certain personality characteristics, such as depressive and restless individuals.

The use of social engineering methods and deception is also common in the MLM industry, which can lead to financial difficulties and poor decision-making for participants.

Some MLM companies have been sued for being pyramid schemes and have faced lawsuits over copyright infringement and poor product quality.

Despite the challenges and risks associated with the MLM industry, some companies have reported significant revenue and growth, such as QuiAri, which operates in over 200 countries worldwide.

Title:

Content: Top Industry Leader, Hanh Tran, Joins QuiAri

By Nicole Dunkley

For working parents, time freedom is the one benefit that is, without a doubt, the most valuable to them. Before having children, QuiAri Champion Promoter, Hanh Tran from California, used to work 12-hour shifts as a Manicure Specialist in a local salon.

She was mentally and physically exhausted all of the time but never once complained. Even as a child, she had a strong work ethic and was willing to do whatever it takes to help her family.

After giving birth to her first daughter, she struggled to keep up at work. After giving birth to her second daughter, she could no longer work such long hours and quit. To make matters worse, the nail salon shut down due to the pandemic.

“To be honest, I was terrified. I had two children, no job to help support my family, and very little savings.

I had heard a little about Network Marketing and QuiAri. I was at such a low point in my life, I had nothing to lose by joining.

I couldn’t believe what happened next. I went from unemployed to a Champion – one of QuiAri’s top ranks – in less than one year. My kids are happy, healthy, and with me 24/7,”

stated QuiAri Champion Promoter, Hanh Tran.

Her success at QuiAri continued as she started taking the products she had been enthusiastically promoting. Before QuiAri Shake and Energy, Hanh suffered from health challenges that affected her weight, sleep habits, and caused painful inflammation.

“I have to thank QuiAri Diamond Promoter, Cindy Hong Thy for introducing me to QuiAri. I had read all of the testimonials on QuiAri’s social media pages.

After just 3 days, My husband and I started feeling better. The delicious shakes and powerful Energy tablets were providing me with relief, and they made us look and feel at least 7 to 10 years younger!

My husband lost 22 pounds and I got my pre-pregnancy body back! We’ve both been frustrated in the past by other products not working, so you can imagine how elated we were to see results,”

said Hanh Tran.

She credits QuiAri Founder & CEO, Bob Reina for creating these amazing products with the help of Dr. Juan Hancke, the #1 Maqui Berry Expert in the world as well as QuiAri’s Scientific Advisor.

She also said Bob is the reason she has climbed to the high rank of Champion. Hanh has been tuning in to Bob’s weekly live broadcasts for inspiration, motivation, and mentoring.

QuiAri is well-known for their industry expertise and abundance of resources available to all Promoters for free.

“The Executive Leadership Team has a combined 250+ years of MLM experience, and it shows. Our innovative Compensation Plan is full of industry-firsts.

We have the fastest-paying Compensation Plan in industry history (5 minutes worldwide), one of the highest paying Compensation Plans, we are the first company in the industry to launch in over 200 countries worldwide, and I would put our Marketing and Support Teams up against any multi-billion-dollar company in the industry.

My friends in other Network Marketing companies envy our social media content and sales and marketing materials we get for free to help support our QuiAri businesses,”

said Hanh Tranh.

In the next 5 years, Hanh plans on achieving financial freedom. She hopes her success with QuiAri will allow her to buy a house and send her children to the best private schools in California.

“I have big dreams, just like everyone else at QuiAri. California has some of the most expensive real estate in the world, but I’m prepared.

Once I reach QuiAri’s top rank of Purple Diamond, I’ll be able to live the life I deserve and give back to the people that helped me get to where I am today – that includes my family, my friends, and even my team.

I know that day is coming soon, and I simply cannot wait,”

said Hanh Tran.

To learn more about QuiAri, their products, and the opportunity to become a Promoter, visit https://quiari.com/en, or follow them on social media @QuiAriOfficial.

About QuiAri

QuiAri is the #1 health and weight loss movement in the world today. Featuring exclusive, breakthrough products (QuiAri Shake and QuiAri Energy) featuring the world’s new #1 superfruit, the Maqui berry, people everywhere are losing weight, boosting their energy levels, and improving their health. What started as an idea has now become a worldwide phenomenon, gaining a passionate following in over 200 countries. But that’s not all! We boast an exciting opportunity to promote QuiAri products and earn commissions within 5 minutes after each sale through industry-first, state-of-the-art payment technology. Combining unrivaled products with the fastest payout, the fastest cycling binary, and one of the highest-paying compensation plans in the industry, there’s no doubt QuiAri is helping people live healthier, happier lives. To learn more, please visit quiari.com.

Income Disclosure Statement

Please note the QuiAri business opportunity offers unlimited income potential. However, QuiAri makes no guarantee of financial success. Success with QuiAri results only from successful sales efforts, which require hard work, diligence, skill, persistence, competence, and leadership. Your income will depend upon how well you exercise these qualities.

These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.

The post Top Industry Leader, Hanh Tran, Joins QuiAri appeared first on Direct Selling Facts, Figures and News.

Source:: https://www.businessforhome.org/2022/06/top-industry-leader-hanh-tran-joins-quiari/

However, success in the MLM industry often requires hard work, diligence, and leadership skills, and there are no guarantees of financial success.

The MLM industry has also seen a shift towards online sales and retail stores, with some companies offering hybrid models that combine traditional MLM with direct sales.

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.

Overall, the MLM business model has been criticized for its focus on recruitment over sales, and its potential to exploit vulnerable individuals, highlighting the need for critical thinking and caution when evaluating investment opportunities.

Many people who participate in MLMs ultimately experience financial losses, with some estimates suggesting that up to 99% of participants lose money.

As a result, some experts have called for greater regulation of the MLM industry and more transparency around business practices and potential earnings.

In recent years, there has been a growing trend towards simple direct sales models without a recruitment component, as consumers become increasingly wary of MLMs and their tactics.

However, it is unclear whether this trend will continue, or if MLM companies will adapt and evolve to changing consumer behaviors and regulatory environments.

The potential negative psychological consequences of participating in an MLM company include financial stress, decreased self-esteem, and emotional distress.

Title:

Content: Media release

Young Aussies’ mental, physical health worsening amidst rising financial stress

80% of financially stressed young Aussies are experiencing mental health impacts according to new ubank research.

New YouGov research commissioned by ubank has returned a number of concerning insights around the ways financial anxiety is impacting the mental and physical health of young Australians.

Amidst consecutive RBA interest rate rises and increasing costs of living, 4 in 5 (80%) financially stressed young Aussies have reported impacts on their mental health.

The report also uncovered:

  • Financial stress is impacting the physical health of nearly 2 in 3 (64%) financially stressed young Aussies
  • 7 in 10 (69%) financially stressed young Aussies agree that financial stress is impacting their relationships with family and friends
  • The top 3 reasons for financial stress amongst those surveyed are difficulties in budgeting and juggling everything with the rise in living costs (36%), savings running low/running out (34%), and not having enough savings for emergencies or unexpected expenses (33%).

Andrew Morrison, Chief Product and Growth Officer at ubank said, “This data is a really important reminder that financial stress is a significant risk factor for poor mental and physical health. It does not discriminate, and is widely felt by many young Aussies, leading to difficulties maintaining personal wellbeing as well as relationships with friends and family.

“During times of financial stress, it is important that Aussies are equipped with the right tools — whether that be apps which help people better manage their money, financial advice or counselling — to navigate the situation financially and emotionally.”

Dr Peter Baldwin, Head of Clinical Research and Clinical Psychologist at the Black Dog Institute said, “Financial stress is a double-whammy for mental health. Not only does it increase the likelihood of experiencing a mental illness, it restricts that person’s access to mental health care, especially for young people who already struggle to access support.”

“These data are yet another reminder that we need to make high-quality mental health care affordable to all Australians, regardless of financial situation.”

If you or someone you know is experiencing financial stress, there are resources to support: https://au.reachout.com/articles/how-to-deal-with-financial-stress

About the research

  • This study was commissioned by YouGov in consultation with ubank
  • It was conducted between 3 – 8 November 2022
  • Over 1,000 Australian Gen Z and Millennials (aged 18-41) were interviewed
  • These Australians are referred to as “young Aussies” in the research

Participating in an MLM company can lead to decreased self-esteem, as people may experience negative attitudes from others, requiring stress-resistance in the network business.

Title:

Content: Network marketing: build a business without risks!
Moderators: more, bot, translate
Network marketing: build a business without risks!
by sonnick84 » 12 Mar 2022, 12: 35
Network business is a great opportunity to leave an unloved job and organize your own business without significant cash investments.
But is this true in reality and what nuances should be aware of those who just decided to participate in some project?
In this article, we will discuss the main points, as well as write some important recommendations!
Own business is first of all freedom and network marketing, the shortest and easiest way to it.
Think for yourself, in order to sell services or goods, you do not have to open a physical store, hire workers.
Basically, there is no need to go anywhere and absolutely all workflows are made directly from the PC.
The initial costs are small, if we are talking about goods, you will have to buy the initial batch.
However, after a few sales, this is no longer a problem.
But there are also such MLM projects where investments are not needed at all.
We recommend you to read: on this site MLM reviews and not only.
Absolutely all routine business is handled by the company itself, and you should only sell the product!
Which is usually of high quality and at an attractive cost.
It is difficult to implement only at the first stage, after the buyers themselves call and make new orders.
It is no longer necessary to go to apartments, there are many sales channels on the network, for example, social networks.
Income is unlimited, the more effective you act, the higher the profit will be, everything is simple!
In words it looks beautiful, but not everyone will suit the MLM business.
In any case, you need to try, besides the risks are minimal.
The worst thing that can happen is that you will have the goods purchased for sale.
Of the shortcomings, we can distinguish the fact that sales directly, this is the ability to qualitatively submit goods and cause the desire to buy from the person who was not going to spend money on it.
Many people have a negative attitude to the network business, in this regard, you need to be stress-resistant.
Income is floating and it will depend on many factors.
In some cases, you will need to get an IP, and this is already taxes and some responsibility.
But again, you do not need to do this immediately only after you know that you are ready to make money!
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Some MLM companies, such as LuLaRoe, have been accused of being a pyramid scheme, leading to financial stress and decreased self-esteem for their participants.

The business model of MLM companies can generate revenue by multiplying salespeople, but it can also lead to debt and financial loss for the salespeople themselves.

Inexperienced leadership in MLM companies can lead to shoddy production and quality issues, making it hard for participants to turn a profit.

The market can become flooded with products, making it difficult for participants to sell them and leading to financial stress.

Some MLM companies, such as LuLaRoe, have paid millions of dollars to settle lawsuits related to their business practices.

Participants in MLM companies may experience verbal abuse and emotional collapse due to the training courses, which can lead to dramatic changes in self-worth and normal social identity.

Title:

Content: People 's Network > > Education
Dangerous training: trainees verbally abuse each other for five days and four nights to become "youth leaders"
September 01, 2021 08: 17 | Source: China Youth Daily
Small number
Title: Dangerous Training
Before the start of the course, Hu Ding received a "love letter" from the training institution.
Control begins with oppression and verbal abuse. Xue Ying ’ s experience is to pick faults from the students ’ past experiences and criticize them – “you are too selfish ”,“ you are indifferent ”, “you are self-righteous ” … He often uses this phrase.
According to his observation, at this stage, some students will feel heart discomfort, gasping for breath, and some students will vomit halfway.
These memories have been hidden in the shadow.
Until recently saw the 32-year-old female investor Wei Meng in Beijing who fainted in the LEGACY course and then died, he remembered the news that from 2016 to 2017, he had done a similar course in Beijing, and the teaching content was very similar to the course content of Wei Meng.
Some media reports said that on the LEGACY course, the students verbally abused each other, resulting in Wei Meng's emotional collapse, and the family denied this statement.
At present, the Beijing Tongzhou District Market Supervision Administration is investigating the institutions involved in Wei Mengsheng's visit.
According to the reporter of the China Youth Daily, there are many such training courses in China that include verbal abuse of trainees.
Chen Tianjia, an associate professor at the School of Marxism at the University of the Chinese Academy of Sciences who has long been concerned about such phenomena, said that the source of such courses was in the United States, and after they were introduced to China, they were called "coaching skills" courses.
Such courses nominally help students to break through themselves, in essence, through interlocking training courses, the mind of the participants, and for different user groups, with different terminology packaging, spread variation in many places.
For a long time, such courses have been covert and confusing under the guise of various trainings. The news of Wei Meng ’ s death has reignited the discussion of “coaching skills ” courses.
A victim support group of more than 400 people also followed the news.
Most of the friends met in the stickers against "coach technology", and engaged in industries including finance, foreign trade, construction, Internet, and insurance.
Some are college students who have just graduated, some are retired elderly people, and teenagers to consult, whether their own courses are "coaching skills".
Among them, a small number of friends have attended classes and left training institutions after becoming aware of problems.
Most people, in order to save their families who are in class, communicate in groups and find ways to dissuade their families from attending classes.
Like riding a roller coaster, controlling the mood of the trainees
As a tutor of the "Coach Technology" course, Xue Ying has no professional background in psychology.
He had attended such training courses, and later, in order to become a teacher, he quit his original job to study film in college and spent 100,000 yuan on training courses.
It wasn ’ t until 2017, when his family discouraged him, that he stopped being a mentor.
According to his recollection, absolute obedience and discipline are the characteristics of many "coaching skills" courses. In the classroom, he asked students to wear uniform uniforms, shout neat and loud slogans, and keep their emotions high. The purpose is to unite the students and "let the students collectively unconscious."
Students also need to turn in their mobile phones, and the content of the course is not allowed to be transmitted outside.
In the recollection of the interviewees, the most common sentence appeared is "they let me do what I do."
In the first stage, students are asked to embrace each other to increase their sense of belonging and trust.
Before the end of the first phase, he also invited the students' families to "secret" to the graduation ceremony site, with music and lights, family members holding a bouquet of flowers or holding a gift suddenly appeared, to celebrate the graduation of the students, so that the students "more grateful platform, thank the teacher", and then encourage students to register for the second phase of the course.
In the second stage, Xue Ying will break the students' psychological tolerance by cracking down, accusing and picking up problems.
At this stage, many participants will experience physical discomfort.
In order to ensure safety, Xue Ying will learn about the mental state and pregnancy of the students before the class.
Xue Ying concluded, "The second stage of the game is physically exhausting, and the brain is empty to listen to."
He also asked students to share privacy, trauma, role play into the most hated people, such as prostitutes, old ladies who pick up garbage, etc., and encouraged students to "go out" and "break through themselves."
His cadets once wore beggar's clothes and went to the amusement park for a round.
A role play that attracted attention on the Internet is that in 2018, a female student engaged in insurance work appeared in Mong Kok subway station in Hong Kong, China, wearing a three-point bunny dress and taking the subway.
She participated in a “life improvement course ” in Hong Kong, China, where the instructor asked female students to wear revealing clothes in public places to break through themselves and enhance their self-confidence.
It was not until the last day before the end of the second stage that Xue Ying began to praise the trainees. "It is like riding a roller coaster, pressing down at first, and then slowly lifting up, and when lifting to the highest, people are easily excited and happy."
In the third stage, the training organization will guide the trainees to randomly form a party with the opposite sex in the class and go out to invite the new trainees. For example, Xue Ying, the trainees find new trainees to come to the class to help the new trainees, just like picking up a starfish washed ashore and throwing it back to the ocean to save the life of the starfish.
In such training courses, "starfish" has become a synonym for new students.
Sending "starfish" is a compulsory lesson for students.
A student engaged in foreign trade work, one by one invited WeChat friends, and finally only pulled one person, she once felt depressed, "Why don't you believe me".
Xue Ying will also organize students to participate in public welfare activities, to leave behind children's schools, nursing homes to give love, to increase the sense of collective honor.
Li Cheng, who was born in 1997, has been involved in such public welfare activities.
In junior high school, he and his father participated in a public welfare event jointly organized by his school and entrepreneurs as representatives of students and parents.
He also remembered that at that time, the school hung a red banner that read "Together lift up the sun of tomorrow", and the students took turns on the stage to say thank you to their parents.
Only after his father participated in the "Coach Technology" course, did Li Cheng know that the original public welfare activities were actually free publicity for the "Coach Technology" course, and the purpose was to tap parents to become potential students and shape a good social image of the training institution.
According to public reports, many schools across the country have held similar activities, in the school hung red banner or background board, the organizer of the "coaching skills" class to organize the public welfare activities.
Their usual class code begins with the letter “TA ” and“ LP ” followed by a number, such as “TA57 ”, referring to the 57th class.
These public welfare activities were published in local newspapers, calling for the endorsement of the "starfish" for the students.
Five days and four nights as a youth leader.
"Coaching psychology" and "coaching technology" are similar names, the former is a branch of psychology, focusing on exploring potential, improving people's happiness and work performance.
As early as the psychology of coaches is widely known in China, there have been training courses under the name of "coach technology" to implement new MLM methods.
The three-stage training routine of the "Coach Technique" course can evolve into many forms.
In Shandong, in order to recruit shop owners in the county, training institutions have launched "entrepreneur training" and added the content of national science on the basis of "coach technology".
In Shenzhen, in the face of corporate executives and factory owners, training institutions focus on training students "leadership skills" and enterprise management.
There are also "coaching skills" training institutions that set up registration points in the university's continuing education college.
In the face of teenagers, it has become a five-day four-night summer camp, "Youth Leadership Class" and "Awakening Talent Leadership Camp".
Compared with adult classes with classes lasting for several months, the youth classes are held more in winter and summer, and the time is shorter.
Under the network videos related to "spiritual marketing" and "coaching technology", many netizens commented that they had participated in such courses during their youth.
"Southern Weekend" reported in 2019 that some training institutions, in order to recruit more people, require students to bring children in, and some even run courses for children aged five or six.
The reporter of China Youth Daily, China Youth Network, in the capacity of parents, consulted two institutions suspected of offering such courses.
One said that new students must be recommended by students to attend classes, and another said that parents must attend two days of classes before they can accurately select lessons for their children.
In a written introduction to one of these institutions, such courses can translate (the student) into a belief in “forced ” behavior.
The course counselor explained to the reporter that the teacher through subconscious hypnosis, let the child do what they are not willing to do, "every day to listen to repeated words is also a kind of hypnosis."
Fifteen-year-old Hu Ding once participated in a course called "Youth Leadership Training Course", which has had a painful impact to date.
The course was held in July 2019. The five-day four-night course is worth tens of thousands of yuan. The class is located in a hotel in Baiyun District, Guangzhou.
Hu Ding's parents heard that other children "suddenly opened up" after class, and the grades in the top 10, specifically let Hu Ding from Foshan to Guangzhou to attend classes.
In the class, Hu Ding had to shout a slogan repeatedly, “I want to be a responsible leader! ” echoed in the hotel conference room. There were about 36 students in the class, and whoever stopped first lost. Hu Ding ’ s voice was hoarse, and“ Throat treasure ” became a necessity for the students.
The course also has game sessions, which often last until more than 10 p.m. and sometimes end at 12 midnight.
Hu Ding recalled that each student needed to share their own mistakes, a group of six people, and criticize each other.
He shared that he often quarreled with his parents, and the team members, led by the old cadets, surrounded him and called him "hypocritical", "unfilial" and "irresponsible" until they called him and cried.
Some students did not want to participate in the game, and were criticized in public by teachers and old students.
Teachers and students are the absolute authority of the classroom.
They asked all the students to stand on their chairs and follow the teacher's instructions to turn left and right.
The first mistake is to punish the student to kneel in the chair; the second mistake, the student has to get down from the chair and stand on the ground; the third mistake, the old student will drag the person out of the conference room and wait outside the door for the game to end.
The teacher said that the old students are "your parents", every mistake will make parents hurt, can not do wrong. Hu Ding recalled, "The whole process is very guilty, half of the people are dragged to the door."
By the end of the course, two years later, he had become timid and always afraid of doing something wrong.
Every time he helps his parents buy food, or helps his classmates buy milk tea, he is afraid of buying wrong, always call each other and confirm it over and over again.
He also wanted to change it and become more convinced of himself, but it was “hard. ”
He later learned about the "coach technology" course, and found that the youth class is more relaxed than the adult class management, the first stage of the adult class and the second stage of the game together.
But he did not tell his parents about the "youth leadership class", because parents trust such courses, and if the truth is revealed, it may cause more quarrels.
In the summer of 2021, 14-year-old Li Hua also participated in a similar course.
She had wanted to "vacation" in this five-day summer camp, temporarily escape from online classes and homework, but ushered in high-intensity training.
She has to sing, practice dance, play games and complete her homework every day, sometimes getting up at five or six in the morning and not getting enough sleep, "more tired than studying at school."
Many games on the course, no matter what the players play, will be criticized by the instructor.
Some games make up extremely dangerous game scenarios.
Li Hua encountered the fictional game scene is in a lightning night of rain climbing mountains, in this link, Li Hua obviously felt the breath accelerated, cold sweat.
She cried every day, “No crying, no crying. ”
After finishing the class, Li Hua slowly recalled the details of the course, found that many games have no practical significance, just set an extreme scene, guide the students into the situation, students cry during the game, emotional collapse, and finally teach a "everyone knows" truth.
She asked relatives, compared to the adult class, the youth class only lacks the link to call "starfish".
Shen Cheng, from Jiangsu Province, has been focusing on “coaching technology ” since 2016 and is one of the core members of the Victim Support WeChat group.
An 18-year-old girl once asked Shen Cheng for help, and her aunt reported her to a summer camp of “cultivating future leaders ”, repeating the slogan“ I want to be a leader ” in class.
When Shen Cheng talked to her mother about the dangers of "coaching skills", her mother replied, "You think things too seriously" "I believe that the child will gain through this training."
Shen Cheng concluded that most of the parents of young students are confused by the propaganda skills of such courses, and will only enroll young people in the class, and many young people are difficult to detect the problems of such courses, and even if they find it, it is difficult to oppose the parents' decisions.
Finding an "antidote" to life's problems in training classes
Shen Cheng found that some students who are addicted to “coaching skills ” encounter difficulties in life and feel confused, hoping that the course can help solve problems, such as couples who do not want to improve their relationship, introverts who want to improve their eloquence and improve their bad emotions.
A girl who works in an Internet company, has been invited by her classmates to join the course many times, and has refused.
Until she fell in love, this classmate pulled on the "coach technology" course of two students, the three accompanied her to the cafe, comfort her for more than an hour.
She felt the "kindness of others" and promised to take classes.
This introverted girl alone in the big city, she said, in the "coach technology" classroom, she can feel the rare "big family" connection in daily life, "very touched."
The tutor will guide the students to communicate privacy, share secrets, and embrace each other, and when they graduate, the old students smile and send blessings and flowers to the new students.
She even had an expectation that after class, she could have a girlfriend, "a girlfriend will share a secret."
Later she learned that the friendly conversation in the cafe was just one of the methods used by the old cadets to pull people's heads.
These students who hope to find an "antidote" in the training course are more harmed in the course of the class.
A family member of the victims' mutual help WeChat group said that this course is specially designed to pick others when they are vulnerable and confused, and invite them to classes, which is "quite unethical".
It is difficult to count how many people, how many families, because the “coaching skills ” curriculum is affected.
Since 2016, about 2,000 people have joined the Victim Support WeChat group.
Among them, Shen has been in contact with at least 200 couples who have divorced because of “coaching skills ” courses.
In 2011, the owner of a domestic service company in Kunming, in the "coach technology" training class, on the spot mental disorders, and then in Yunnan Province psychiatric hospital treatment, judicial identification, suffering from schizophrenia.
After the illness, the domestic service company closed down, the patient's life can not take care of itself, and needs special supervision.
Her family sued the training agency for civil liability.
In the judgment, the family members provided evidence that the training institution had two previous jumping incidents.
Professor Chen Tianjia introduced that the source of the "Coach Technology" course is an organization called Lifespring in the United States, which has also caused controversy in the United States, some students enjoy the class, think that psychological problems have been solved to a certain extent, some students are weak or have basic diseases, can not bear the pressure of the course, some are mentally disturbed, some people commit suicide.
According to the data, there are more than 30 lawsuits against Lifespring in the United States, including involuntary servitude and unlawful death.
These victims kept filing lawsuits, forcing Lifespring to shut down.
Poison wrapped in chocolate.
Chen Tianjia concluded that the psychological manipulation technology of "coaching technology" made the participants' thoughts extreme.
The participants' personalities were reconstructed, and there was a dramatic change in self-worth, self-esteem, and normal social identity, which was essentially psychological abuse.
In his view, these abused participants risk becoming ardent defenders of “coaching techniques, ” believing that they have come to“ save ” others.
Moreover, the impact of the training course will be with the trainees for the rest of their lives.
For example, when hearing specific music and seeing some scenes, students will recall scenes from past training sessions, and they will have painful feelings.
This pain needs to be shared with their families.
Many trainees and their families recalled that in the first phase, trainees had a significantly positive change, but soon, the situation was bad by the turn for the better.
Lin Qing and her husband opened a lighting company in Shenzhen, her husband is a professional in science and technology, and the husband and wife work together to buy a house in Shenzhen.
Lin Qing recalled that her husband did not do housework, and after the first stage of training courses, he went home to help Lin Qing wash his underwear, write love letters, fold his clothes, and mow the floor at home at 3 a.m.
But in the second stage, during class, the husband was beaten on the ground and the collar of his clothes was torn.
Lin Qing found that her husband became extremely excited and had the idea of making quick money, and planned to list the company with only 10 employees, requiring all the family members to listen to him.
Li Cheng also found that his father can quickly enter a state of hyperactivity and is irritable and irritable.
When he met his family, Li Cheng's father slapped him directly.
Li Cheng repeatedly advised his father not to attend classes, his father described Li Cheng with "inverse son" and "arrogance", refused to provide Li Cheng's living expenses for college, and beat Li Cheng's head with an iron rod.
Among the victims' mutual help groups, many families are distressed and how to persuade their families to not attend training courses.
In order to prevent her husband from taking classes, Lin Qing deleted the WeChat of her husband's teachers and classmates in his mobile phone.
Husband determined that Lin Qing did not give his man face, the two sides of the most fierce confrontation, husband closed the kitchen door, took up a kitchen knife to threaten Lin Qing.
Some people in the process of persuading their families to leave the training course, they were "called".
A master of science and engineering in Beijing, because his girlfriend took classes, once called the police to deal with the training institutions, and then his girlfriend paid for his tuition, he went to audition for a few classes, and also fell into it.
A former student told the reporter of the China Youth Daily that the evaluation of "coach technology" courses should be "as neutral as possible", which has advantages and disadvantages.
She recalled that 10 years ago, she was reluctantly "inducted" to class, and the instructor asked her to change her mentality, "not the problem of the classroom environment, it is your problem".
Learning to look for problems in her own body is the harvest of her class.
This kind of neutral perspective is prevalent in the old cadet group.
They are aware of the dangers of the course, but claim to be confident that they can master the course and learn only the positive.
Shen Cheng countered that the "coach technology" course is like a poison wrapped in chocolate candy, normal people know that the poison will choose not to eat, but when someone patted the chest and said that only licking chocolate candy, never poisoning, this person either recognized the problem, or is selling poison salespeople.
Difficulties in regulation
It's not easy to crack down on "coaching techniques" classes.
Such courses are often accompanied by the spread of Christian heretics in the United States, and the mainstream society in the United States calls it a pyramid selling cult.
Chen Tianjia told the China Youth Daily reporter that in China, the "coach technology" course does not deify the ringleader, the degree of organization is loose, and there is no evidence of obvious dissemination of superstition and heresies, which does not meet the definition of "cult organization" in Article 300 of the Criminal Law.
Moreover, students need to hand in their mobile phones before class, and the signing of agreements does not allow the disclosure of course content, which is difficult for law enforcement agencies to grasp the course content.
It is also difficult to define such training institutions as pyramid marketing organizations.
According to the Anti-MLM Law of the People's Republic of China, after the successful development of "new people", the organization will provide "old people" with material rewards and other rewards, "new people" to join the organization also have to pay fees, "new people" and "old people" will form a line of relationship.
However, in the "coach technology" course, the trainees called "starfish" without remuneration, the trainees "feel that doing these things is worth more than how much money they get, are happy", "starfish" payment belongs to the "training fee", the new and old trainees do not constitute a subordinate relationship.
In 2019, the Shenzhen Municipal Public Security Bureau filed a case to investigate the Shenzhen Zhongding Business School, which became the first new type of marketing case in China to implement mental control through illegal and harmful training in the name of “coach technology ”.
In an interview with the Southern Metropolis Daily, the police handling the case introduced that as a new type of training mode, "coach technology" has become a vacuum zone of supervision, and daily supervision is still lacking.
After the case, such courses continued to be disseminated throughout the country.
Shen Cheng found that some students woke up and called the police, but could not produce clear evidence.
Shen Cheng concluded that the cost of running a "coaching technology" course is very low, only need to register a company, recruit one or two instructors, rent an office, you can recruit students.
As for training funds, venues, and props, it is entirely possible to summon veteran trainees to provide them.
Among the victims interviewed by the reporter of the China Youth Daily, some are about to enter the third grade, some recent graduates are invited by the boss to participate in the course, and others have just graduated for 3 years, and they have deliberately made the first credit card in order to pay tuition.
Liang Yi, a psychological counselor with 10 years of participatory training experience, believes that the benign psychology course will not have personal judgments, accusations, and attacks on the participants, and will protect the participants, and if the participants have bad emotions, they must refuse in time, ask for help and leave.
He said that in the context of profit-seeking, the prosperity of "coaching technology" courses has allowed people who have no ethical bottom line and psychological knowledge to start classes as long as they have a set of methods.
In fact, the mentors who organize psychological group activities have a high threshold and need to take care of each participant ’ s inner world, be patient, understand psychology, and have long-term experience.
Chen Tianjia suggested that victims could follow the example of those victims in the United States in the last century and bring legal proceedings. "There are more cases, and then there will be experience." (reporter Wei Wei Wei intern Lu Siwei)
(At the request of the interviewee, Li Hua, Hu Ding, Shen Cheng, Xue Ying, Lin Qing, Li Cheng as aliases)
(Editor: Wen Lu, Xiong Xu)
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The impact of these training courses can last a lifetime, causing painful feelings and physical discomfort.

To mitigate the negative psychological consequences of participating in an MLM company, it is essential to be aware of the potential risks and to have a support system in place.

Title:

Content: What is important for mental health? .. Answer in two words

According to the American Psychological Association, pleasure Self-esteem The high is important Positive mental health and well-being, This is because it helps individuals develop coping skills, deal with adversity, and put negatives forward.

High self-esteem is also associated with social behaviors such as generosity, empathy, regression and supportive family relationships. The decision-making process In individuals, by having a positive view of themselves and their potential.

A study of college students with higher self-esteem and more loving relationships with their families found that they were more successful at school and better able to live in a new environment.

But what factors affect low self-esteem and self-esteem for many?

This is one of the basic human motives behind the hierarchies of needs explained by the famous psychologist Abraham MaslowRather, it is an inherent need within every human being to receive compliments from others with inherent self-esteem, which can lead to self-realization.

However, factors that affect self-esteem vary from person to person, including age, illness, physical abilities, and socioeconomic status, but clinical psychologist and psychiatrist David Sussman views life experiences as the most important factor.

“Our experiences often form the basis of our overall self-esteem,” he says. “Those who continue to receive high ratings from negative reviews from family and friends tend to have lower self-esteem than those who receive unconditional positive reviews.

The most important symptoms

One of the most common symptoms of low self-esteem in people is the feeling of losing control and control over their lives or what is happening to them, to the extent that they are unable to make any change in their lives.

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On the other hand, they are overwhelmed with anxiety and self-doubt after making any decision, fearing that they have made the wrong decision, and questioning their opinions to the extent of accepting what others think rather than sticking to their own choices.

In a study published in the Journal of Experimental Social Psychology, low self-esteem was directly related to the inability to accept or benefit from the compliments of others because they did not have a positive opinion of themselves because they were over-focused. Flaws rather than their strengths.

Another common symptom of low self-esteem is pleasing people at their own expense in order to attract attention from the outside.

Self-esteem techniques

To improve self-esteem, Drs. According to David Sussman, people need to practice some strategies that will help them raise their self-esteem and self-esteem, the most important of which are:

Reward yourself for achievements.

Self-forgiveness for mistakes.

Accept yourself with all the flaws and imperfections.

Think of yourself as a friend.

Replace negative internal speech.

Accept compliments.

Use Thanksgiving Blog to document positive things.

Keep a plan to implement small changes.

Finally, seek the support and help of others.

Moreover, it may take a long time to practice what has been mentioned before, highlighting the positive difference, which reflects the improvement in the quality of the relationship that binds man to himself, which gives him flexibility, hope, compassion, encouragement and love. For the rest of his life.

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About the Author: Cary Douglas

Cary Douglas is a reporter who covers everything from oil trading to China's biggest conglomerates and technology companies. Originally from Chicago, he is a graduate of New York University's business and economic reporting program.

Seeking support from others, practicing self-acceptance, and rewarding achievements can help improve self-esteem and reduce the risk of negative psychological consequences.

However, some MLM companies may use subconscious hypnosis to control participants' behavior, making it difficult for them to seek help or leave the company.

Regulations struggle to crack down on such companies due to loose organization and lack of evidence.

It is crucial to approach MLM companies with caution and to do thorough research before participating in them.

Some experts warn of accidental psychological trauma from MLM courses, and participants may experience insecurity, pessimism, and low self-esteem after attending these courses.

Title:

Content: [Mental Health] 32-year-old CEO suspected of mental control brainwashing, abuse, emotional agitation, fainting and rescue
Health 16: 11 2021 / 08 / 19
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The 32-year-old CEO suspected of being mentally controlled, fainted while participating in a processing workshop, and died.
A 32-year-old managing director of an investment company in the Mainland recently fainted while participating in a processing workshop and died two days later.
The Internet reported that she was mentally controlled during class, and was emotionally agitated during the abuse session, and unfortunately passed away, but her family denied the news.
Sare Wei, a 32-year-old managing director of venture capital firm DCM, was included in the 2019 Forbes list of countries under the age of 30. On August 14, he participated in the LEGACY workshop course organized by Beijing Chengquan Cultural Development Co., Ltd., and passed away on August 16.
Some students said that Wei Meng participated in the LEGACY mileage class, in the interactive session of four people insulting one person, resulting in an accident due to emotional agitation.
Wei Meng, the 32-year-old managing director of an investment company, fainted while participating in a processing workshop recently and died two days later.
(Online Photo)
Students said that the course brainwashing caused emotional negativity
According to the trainees, many investors are also forced to participate in the mileage course, this "horror" course, and are required to keep the content confidential.
He pointed out that the curriculum model is "insulting you, destroying you, saving you" and "using psychological experience and field advantage to attack the students, which is very immoral."
Another student said that one week after completing the first stage of the "exploration" course, he continued to feel excited and inexplicably happy; to the second stage of the "transformation" course, because it will magnify his own shortcomings, people's dark side, will be "brainwashed", resulting in negative emotions, become insecure, pessimistic, low self-esteem, lack of identity, need to prove themselves to others.
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Call for help from brain and cardiovascular experts
On August 15, LEGACY Chengquan Beijing official microsignal issued a letter of help, saying that the student of the flying ability workshop accidentally fainted in the classroom and was rescued in the ICU, which was later confirmed to be Wei Meng.
In the letter, the company solicited expert resources on brain and cardiovascular issues, as well as experts on accidental psychological trauma in the elderly, infants and young children.
The letter revealed that the trainee was an outstanding professional woman and the mother of two children, and that the family members of the workshop rushed to the scene that night. "The trainees, all the group leaders and instructors have been working together with each other and the family of the patient until now, and are looking for more medical resources."
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According to LEGACY ’ s official website, LEGACY is a consulting firm dedicated to personal growth and corporate sustainability, serving the Chinese community with offices in Hong Kong, Beijing and Shenzhen.
After the death of Wei Meng, LEGACY Chengquan Beijing released the obituary on August 17, but it was deleted soon after, and released a statement by Wei Meng's husband in the circle of friends in the early morning of the next day.
The statement said that the network news was seriously false, which caused great misunderstandings to Wei Meng and caused secondary damage to his family.
According to data, DCM, a venture capital firm founded in 1996, manages more than US $4 billion in capital and has offices in Silicon Valley, Beijing and Tokyo. Meng Wei worked as a management consultant at Accenture and became Managing Director of China after joining DCM. The youngest member of the team.
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In some cases, participating in an MLM company can even lead to the breakdown of relationships, with at least 200 couples reporting divorce due to "coaching skills" courses.

Overall, the potential negative psychological consequences of participating in an MLM company can be severe, and it is essential to be aware of these risks before getting involved.