#6: Multi-Level Marketing Part 1: LuLaRoe
Picture this: you’re on facebook, scrolling through your feed, when a message from an old high school acquaintance messages you out of the blue. He/she asks you about your family, how you’ve been since high school, what you’re doing for work, etc.
If you’re a stay-at-home-mom, you might be met suddenly with an invitation for you to host a “party” or “pop-up shop” to bring your friends over to sell this acquaintance’s product.
Does this sound familiar?
This is usually how “independent consultants” introduce their direct sales product. First, they ask you if you’ll host an event where do the hard and usually awkward work of inviting your friends to either a real-life or virtual sales party. Eventually, after hosting this party, the consultant may invite you to join their team and achieve your dream of becoming financially independent.
MLMs have been around for a very long time. While many are lured in with promises of rising into the upper echelons of a company’s direct sales team, only about 2% ever make it there. 98% of direct sales participants either break even or lose money. Many MLMs have been compared to cults, been sued by consumers/participants, and have earned reputations as pyramid schemes.
Listen to this episode to learn about a recently popular (for good and bad reason) MLM: LuLaRoe.