Multi Level Marketing Protein Shake Meal Replacement Diets
Have you been approached by a family member, friend, or co-worker, who has tried to persuade you to lose weight or increase your health through the products offered by a Multi-Level Marketing (MLM) protein shake meal replace diet? If so, there are some serious things to consider about them BEFORE jumping on board.
 What you need to know up front
 First of all, letâs look at the facts and understand some terms before we go on:
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the high returns requires an ever-increasing flow of money from new investors to sustain the scheme. [1]
The scheme is named after Charles Ponzi, who became notorious for using the technique in 1920.[ Ponzi did not invent the scheme (for example, Charles Dickens' 1844 novel Martin Chuzzlewit and 1857 novel Little Dorrit each described such a scheme),but his operation took in so much money that it was the first to become known throughout the United States. Ponzi's original scheme was based on the arbitrage of international reply coupons for postage stamps; however, he soon diverted investors' money to make payments to earlier investors and himself. [1]
A Pyramid scheme is an unsustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public.[1]
A successful pyramid scheme combines a fake yet seemingly credible business with a simple-to-understand yet sophisticated-sounding money-making formula which is used for profit. The essential idea is that a "con artist" Mr. X, makes only one payment. To start earning, Mr. X has to recruit others like him who will also make one payment each. Mr. X gets paid out of receipts from those new recruits. They then go on to recruit others. As each new recruit makes a payment, Mr. X gets a cut. He is thus promised exponential benefits as the "business" expands. [1]
Such "businesses" seldom involve sales of real products or services to which a monetary value might be easily attached. However, sometimes the "payment" itself may be a non-cash valuable. To enhance credibility, most such scams are well equipped with fake referrals, testimonials, and information. [1]
The flaw is that there is no end benefit. The money simply travels up the chain. Only the originator (sometimes called the "pharaoh") and a very few at the top levels of the pyramid make significant amounts of money. The amounts dwindle steeply down the pyramid slopes. Individuals at the bottom of the pyramid (those who subscribed to the plan, but were not able to recruit any followers themselves) end up with a deficit. [1]
But wait you say. It is not a Ponzi Scheme or a Pyramid Scheme! It is Direct Selling, Network Marketing, and Multi-Level Marketing! Okay then, letâs look at what Wikipedia says about them. [1]
A Multi-Level Marketing (MLM) Scheme is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant's "downline", and can provide multiple levels of compensation. Other terms used for MLM include pyramid selling, network marketing, and referral marketing. [1]
Most commonly, the salespeople are expected to sell products directly to consumers by means of relationship referrals and word of mouth marketing. Some people use direct selling as a synonym for MLM, although MLM is only one type of direct selling, which started centuries ago with peddling. [1]
Companies that use MLM models for compensation have been a frequent subject of criticism and lawsuits. Criticism has focused on their similarity to illegal pyramid schemes, cult-like behaviour, price fixing of products, high initial entry costs (for marketing kit and first products), emphasis on recruitment of others over actual sales, encouraging if not requiring members to purchase and use the company's products, exploitation of personal relationships as both sales and recruiting targets, complex and sometimes exaggerated compensation schemes, the company making major money off its training events and materials, and cult-like techniques which some groups use to enhance their members' enthusiasm and devotion. [1]
In contrast to MLM is single-level marketing, where the person is rewarded only for the immediate income between the exchange of a product and monetary benefits. [1]
Network marketing and Multi-level marketing have been described by author Dominique Xardel as being synonymous, and as methods of direct selling. Â According to Xardel, direct selling and network marketing refer to the distribution system, while the term "multi-level marketing" describes the compensation plan. Â Other terms that are sometimes used to describe multi-level marketing include "word-of-mouth marketing", "interactive distribution", and "relationship marketing". Critics have argued that the use of different terms and "buzzwords" is an effort to distinguish multi-level marketing from illegal Ponzi schemes, chain letters, and consumer fraud scams. Some sources classify multi-level marketing as a form of direct selling rather than being direct selling. [1]
The Direct Selling Association, a lobbying group for the multi-level marketing industry, reported that in 1990 twenty-five percent of members used MLM, growing to 77.3 percent in 1999. Companies such as Avon, Electrolux, Tupperware, and Kirby all originally used single level marketing to sell their goods and later introduced multi-level compensation plans. By 2009, 94.2% of members were using MLM, accounting for 99.6% of sellers, and 97.1% of sales. The DSA has approximately 200 members while it is estimated there are over 1,000 firms using multi-level marketing in the United States alone. [1]
Independent non-salaried participants, referred to as distributors (or associates, independent business owners, dealers, franchise owners, independent agents, etc.), are authorized to distribute the company's products or services. They are awarded their own immediate retail profit from customers plus commission from the company, not downlines, through a multi-level marketing compensation plan, which is based upon the volume of products sold through their own sales efforts as well as that of their downline organization. [1]
Independent distributors develop their organizations by either building an active consumer network, who buy direct from the company, or by recruiting a downline of independent distributors who also build a consumer network base, thereby expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they purchased from the company at wholesale price.[1]
The United States Federal Trade Commission (FTC) warns "Not all multilevel marketing plans are legitimate. Some are pyramid schemes. Itâs best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products."[38] It states that research is your best tool and gives eight steps to follow:
Findâand studyâthe companyâs track record.
Understand any restrictions
Talk to other distributors (beware of shills)
Consider using a friend or adviser as a neutral sounding board or for a gut check.
Think about whether this plan suits your talents and goals
There exists a contention which claims MLMs in general to be no more than legalized pyramid schemes.[2]
The Connection to Meal Replacement Shakes and Health & Fitness.
Phew! Okay, so now we are through all of that! Most of these MLM shake companies are going to attempt to sell you on the idea that while you can lose weight and improve your health, you can âpotentially make a ton of money in the process.
The second thing you need to know about MLM meal replacement shake diet companies is that their products are not revolutionary nor anything to right home to mom about. In fact, their claims are not much different than what can be achieved with similar products from your local grocery store, drug store or favorite health food store. The major difference is that MLM meal replacement shake companies have to over price their products in order to pay their distributors and their multi-level compensation plans. Moreover, really take a look at their product labels. Most protein shakes are âblendedâ mixtures. Some like Herbal Life as soy based.
There is some research out there that suggests that soy can affect the male and female libido and thyroid. Personally, I can attest to that while I was using Visalus VI-Shape Nutritional Shake Mix, which they promote the saying of âA shake mix that tastes like cake mixâ, my urge to be intimate with my mate went downhill fast! I must throw in that you can achieve the same cake mix taste by merely buying any vanilla crème based protein and add a touch of sugar and fat free eggnog to your shakes.
When I switched to a 100% whey and or egg protein, the issues with my libido to want to engage intimately with my mate were resolved. Another thing that you need to be aware of is that blended mixes generally cause bloating and/or gas. This is what helps give you that âfull feelingâ along with a few other ingredients. None are really going to merely speed up your metabolism by just using these shakes. It all comes down to overall diet and exercise.
Cost and Distributorships
Most of these MLM meal replacement shake companies offer a âDistributorshipâ started kit for roughly $500. You will get your starter kit and a small quantity to get you started selling. Now, what they donât tell you is that to get around the proverbial schemes we started with, they are basically selling you a business opportunity or better yet a franchise. So BEFORE you get all gun-ho with the sales hype, consider that fact that are you a person that is self-motivated to start and run your own business? Also you need to consider if you need a business license or re-sellerâs license. You will also need to setup a business bank account that is separate from any other bank account(s) you may have. To do it right, you will also need to register your business with the state Secretary of State in which you live in. Wait, there is more! What about taxes and tax advantages of running your own business (Distributorship)? None of these companies offer any info on that and advise you to that this is your responsibility. They also claim that all you have to do is follow their material word for word and you canât fail! Bullshit!
I took on a Visalus Distributorship, but not for the same reasons most do. When I went to a few â90 day challenge partiesâ and the hosts /hostesses attempted to get me to watch the videos I objected. I spoke up and stated all I need to see is the âPolicies and Proceduresâ. This dumbfounded most and at first I had trouble getting this info. In fact I was asked to leave a few parties because I mess up the flow of things. Finally I attended a home party where I was able to obtain what I was looking for. While everyone else watch the hyped up sales videos and listening to the bullshit, I was reading the Policies and Procedures document, which caught the attention of a number of people who also attended this meeting. I was asked why. This is simple. This document explains the setup, the compensation plan and when checks are issued and most importantly, what you can and canât do.
With ViSalus, you are restricted as to how much inventory you can purchase at one time which if I recall was $3500. Plus if you have your own website, you are not allowed to sell their products on your own website. This is why they provide you a website⌠which I might add they charge you a monthly fee for. Other restrictions include not selling their products to a gym or fitness center where they end up selling the product retail. Instead have âhome partiesâ!
My sole intention with getting involved was to gain lists of others distributors as much as possible. I kept maxing out the monthly limit of what I could purchase and despite their policies and procedures; I was selling products everywhere I was not supposed to. I bought and paid for the product so it was now mine to do what I will with right? Not so quick! You do sign an agreement, if you want your commission checks. So the Michigan based company put me on probation I guess you could say. Basically they cut me off from buying anymore products for a while. No problem! I found someone else to be the name and face of my account. Most of these companies entice you with a luxury sports car like a BMW. Whippie ding dong! Give me a 4x4 turbo diesel truck! As you can see, that is not an option so how can a distributor sell me on joining?
Under the identity of a different person, I resumed my traditional marketing tactics. Let me stop here and tell you what actually happened with my up-line. Whenever I attempted to contact them for help, they were NEVER there. In fact the group I ended up in was in North Carolina. I offered the BMW up to my partner to get around ViSalus preventing me from buying for one year. I also followed the step by step and word by word instructions to host my first challenge party. No one ever showed up and that not only didnât surprise me, I didnât want them too. Instead I wanted to sell the products 24/7/356 on the internet just like everything else we offer. We donât want to be high pressure sales people.
One female model we were using to model our swim and fitness wear got her personal trainer certification the same time we did. She is a gym rat and already a fitness model BEFORE getting involved with ViSalus. So she took the 90 day and talk about false marketing! She already had killer 6 pack abs and used photos we took of her in our swimwear to help market her MLM shake distributorship business. So you canât always believe the photos you see. Another model we have worked with has also done the same thing, she too is in violation of copyright infringement.
Now, with the a huge list of people using Visalus and Herbal Life, it was only a matter of time before of these people hit a brick wall with running out of leads and facing frustration of countless problems. At that time, we were right there to show them what we have explained here and to buy 100% whey protein that is much cheaper than ViSalus or Herbal Life products. As for Visalusâ Nero energy drink, that is no different than Emergen-C powered drink you can get at any drug store or major grocery store, we quickly converted them to our customers. When ViSalus figured out (with the help of our nemesis) we were barred for life from purchasing products through them.  So for a $500 investment we were able to obtain hundreds and hundreds of names who we able to convert from ViSalus and Herbal Life to our loyal customers, who most are still with us today.
In short, BEFORE you jump on board to one of these MLM meal replacement shake companies, do your homework. Consider you skills and time available to engage in these and understand that after a period of time of going through a list of all of your family, friends and co-workers, you will experience frustrations of marketing your so-called business. Others you have recruited maybe busy friends an/or parents and give up as well. And despite the sales hype of all of the companies, you can achieve the same results of weight loss much cheaper and just as quick. Contact Devious Designs & Amped Fitness for more details!
