Expert: Dr. Joseph de Beauchamp - 8/2/2005

Question
Sir, i guess you already know what is MLM all about. Basically MLM is also known as direct selling.So many companies that runs MLM business eventually close down because of the "pyramid system" But i am just curious how companies like AMWAY, USA is still active until today and what is their survival recipe!!
When we join a MLM company we are told to buy the products and at the same time recruit friends to join the club.Such,i see some successful members of AMWAY are getting big sum of money.My second question is can I believe in this MLM programs. Is it a general view that millionaires are produced each year thru MLM program? Sir, i shall be honoured to get your answer soon on this subject.

Answer
Lokman,

I never managed money for a MLM. Take a look at their tax returns. I have not found a high level of MLM person to have any real cash money. If they make money, then they must spend it as fast as it comes to them. I have never found any of them to have any liquid cash, and any real net worth. My advise is to avoid this form since your friends and neighbors will start to avoid you. You might apply for a IRS agents position or life insurance salesperson with the same results of respect from you friends.

Dr. Joseph de Beauchamp