The Truth Behind Direct Sales
On this episode of Martinis and Your Money, I'm talking to Brian from Lazy Man and Money about direct sales and multi-level marketing. Brian couldn’t believe a friend tried to sell him a bottle of juice for $45. He began looking into it, only to discover unusual sales techniques used by direct sales companies to get people into multi-level marketing opportunities. Over the past few years, he has written over 30 reviews of such companies, some no longer exist, and exposes the real methods behind the business. Thanks to listener Jamie for suggesting this topic!As a side note: the first Financial Gym location has opened in New York City at 226 5th Avenue, 5th Floor. Please stop by and have a drink with us if you are in the area or check out The Financial Gym online for its tools and resources to help you break free from your financial challenges and live a financially healthier life! We’ll kick your assets into shape!
What are we drinking?
Brian — Diet Coke with rum (maybe)
Shannon — Vodka & tonic
Podcast Notes
Brian started blogging in 2006 at Lazy Man and Money to create a community focused on early retirement while he was striving towards that goal.
In 2008, his blog started focusing on expanding awareness of Multi-Level Marketing (MLM).
Because “multi-level marketing” has a negative connotation now, direct selling and network marketing are used interchangeably to explain the selling technique.
Multi-level marketing companies use disinformation to generate profits.
Brian names some MLM companies—including some that are very well-known.
Beach Body—Shakeology
It Works!
Herbalife
Vemma
MLM companies don’t reveal that 99% of the people who become their sales people actually will lose money.
Some people compare MLM companies to cults.
The selling and sellers of skincare products from MLM companies are referenced as “lotions & potions.”
Shannon says she once purchased weight-loss products from an MLM company and did not see results at all.
Distributors of the products essentially own their own businesses yet have no control over the business.
Brian has written about 20-30 different MLM companies and the first company he wrote about is now out-of-business.
Anyone still considering pursuing this business needs to think about what they expect to get out of it and how they expect to do it.
Put parameters around it and if you are not making money, get out of it!
TAKEAWAY: Remember to always proceed with caution whether you are buying from a multi-level marketing company or selling for them. If you don’t feel really good about your investment, then it is a waste of your time and money.
Random Three Questions
What is your most recent financial indulgence?
What is a TV show you could binge on?
If you could live anywhere else in the country or the world, where would you live?
Connect with Brian
Website: Lazy Man and Money