The other day my insurance agent introduced me to VenturEra, an MLM company.
So the pitch was “$70 in exchange for $400, no strings and effort attached”.
So I got suspicious, is it an MLM?
“No,” she said.
Fine, I’ll go and have a look.
So, I’m introduced to her up-line to do the sales pitch.
Basically, this person is an outright liar and a lousy spin doctor.
“So, if I put down $70 now, will you give me $400 as promised?”
“No, that can’t happen.”
“Then why did you make that statement in the first place?
Was it your intention to lie to your prospects?”
“In the past, MLMs sells a product, now you are selling a concept?
From the tangible product to the intangible concept today.
What are you trying to prove?
I might at least have a good impression of you and your company if you came clean about your ‘business’ and not put all these spin into your pitch.
Now, what do you expect me to feel about you?”
Then he tries to explain that the business concept is going to be similar to that of NTUC, involving itself in a spectrum of businesses.
“So how much reserves you have?
You claim your company rolled out 12 BMWs and has a turnover of $2mil.
You are then obviously slapping yourselves in the face. Do your own math, how can your $2mil provide for your company overheads, the 12 BMWs, each costing an estimated $300k? Bear in mind all this is after all your ‘profit sharing’ and ‘product’. You have mentioned, only $150 out of $1500 goes back to the company. This is 10%. Assuming VenturEra is profitable, what can you do with $200k? What can you do with $200k for VenturEra’s great business plan and vision? It’s Only enough to start one mini-mart. Why do I want to invest in an empty shell?”
A very “buay song” face can hardly keep his cool.
Then another ‘partner’ enters the conversation, rants on and on and cracks many jokes along the way.
“Even if I do join you, I’m not even sure if I’m joining for the entertainment value of what you’ve just said or just for the sake to shut you up.”
The morale of the story: MLM is a system designed for the majority to fail so that the minority can succeed. Are you the minority that might succeed?
Maybe I should go back to tear them down with the math they are so proud of. $2mil turnover – bear in mind the term, turnover, means the total amount of money that comes in. There is no consideration of the money that goes out. They conveniently omitted the expenditure, which includes their 12 BMWs.