This post is part of a series of posts about THRIVE Life (formerly Shelf Reliance), pyramid schemes and MLMs. Read more here: THRIVE Life: Is it a pyramid scheme, MLM, or something else?
Concern #1: Aren’t MLMs just “legal” pyramid schemes?
Yes, some MLMs are very similar to pyramid schemes and are barely legal. For example, they may offer a high quality product, but the money you make is based primarily on the number of distributors you recruit and / or your sales to your team, rather than on your sales to people outside your team who intend to simply use the products. This creates a situation where the main goal of each distributor is simply to enroll more distributors without a lot of focus on selling a beneficial product to the general public. That type of business model is very unsustainable and was not something I wanted to be involved with.
My trainer at THRIVE Life calls this the DCIUSSTTROIMBEURTOR ailment (every other letter spells “Customer” and the other letters spell “Distributor”) b/c in some companies it is hard to tell which you really are! (-: There are many MLMs that offer an extra discount to customers who decide to become distributors. This is a BIG clue that their focus is on recruiting, NOT on selling product.
When considering joining THRIVE Life, I was absolutely certain I did NOT want to join any company with the DCIUSSTTROIMBEURTOR ailment!
Answer to Concern #1:
The vast majority of the products that THRIVE Life sells are sold to those who are not consultants or in other words those who simply want to purchase the product and not worry about selling it. As an example, of all the product I sold last month, 90% of it was to those who are strictly customers, not consultants. Those customers all paid the same price for their products I pay as a consultant.
In addition, while you can build a team of consultants with THRIVE Life, your commission is not based on the number of people on your team. Instead commission is based on two things: (1) A percentage of the product you sell yourself, and (2) A percentage of the product your team sells. You could have a small team that sells a lot and make great commission!
Since your commission is based 100% on product sold and not just number of consultants, it is necessary to train your team well. If you don’t help your team sell, you will not earn much from them! I don’t feel bad at all when I earn income from my team’s sales because I spend hours each week training and supporting them. That income is simply my “salary” for that training!