Webzine Article Re: Direct Sales (Mlm's)

[Addie4TLC]

My Director just shared this article with me and it is a HUGE eye-opener!!! It is very long but worth the read. The best thing about it is that although it puts some popular DS companies in a bad light it is really POSITIVE when mentioning Pampered Chef (whoohooo). One more reason to be proud of what we do.

Quote from the article:

"In truth, not every single MLM is regarded as problematic by industry watchdogs. On his website, mlm-thetruth.com, Jon Taylor goes out of his way to highlight one company he feels operates aboveboard: Pampered Chef. “Fair and equitable distribution of income in compensation plans for participants who focus on product sales are extremely rare in MLM/network marketing,”

http://brainchildmag.com/essays/summer2008_schultz.asp

 

[erinb]

Yeah! That's awesome:thumbup:

 

[Addie4TLC]

Duh, I left out the rest of the quote, but you can read the whole thing. It's like the 4th paragraph from the end (I know it's long- but wow!)

 

[Humble Beginnings]

This was very interesting to read. Thank you!

 

[chefmeg]

thanks Addie~gotta love Doris for being so moral in her business practices.
Something tells me that Mary Kay Ash was, too. I have no way of knowing for sure, of course, but who knows what happened after her death............has MK always been as dishonest as this article portrays them?

 

[Addie4TLC]

thanks Addie~gotta love Doris for being so moral in her business practices.
Something tells me that Mary Kay Ash was, too. I have no way of knowing for sure, of course, but who knows what happened after her death............has MK always been as dishonest as this article portrays them?

I think that in the mad rush to make it to the top some develop a "what-ever it takes" attitude and don't mind bending the rules or stretching the truth. It can get ugly from what I see. Maybe it didn't start off that way.

I spoke to a lady this weekend about the opportunity and she told me that she made $12,000 a month at one point with MK and drove the car. She told me it was really stressful to get that high up and it took a toll on her family. She said her daughter told her once that she really hoped she was enjoying her car, when her son was heading down the wrong path. (Ouch!) She said she ended up losing it all shortly after.

 

[cathyskitchen]

Very interesting - thanks for sharing!

I know Mary Kay is not set up the way that it is portrayed in the article - you don't HAVE to buy inventory, but you are strongly encouraged to by many in the co. It's the people who push and abuse the system that give MLMs and Direct Sales a bad name - thank goodness PC is still above board - I for one will always strive to keep it that way!!

 

[AnnieBee]

All I can say is... WOW!!

I was EXTREMELY relieved to read the part about PC though (especially being a very new recruit - don't want to think that I'm that much of a sucker!! Although it is pretty obvious that PC doesn't operate the same way in terms of inventory).

However, I do agree with Cathy's comment about it really depending on the individual person... And I have to admit, it bugs me a little that my recruiter/director shows her paycheck at shows without mentioning that alot of it (I'm assuming) is not from her personal sales, but from having a large downline.

 

[Addie4TLC]

I agree with the above posts. As individuals we have to strive to keep our business aboveboard. Honesty is the best policy. My Director shows her paycheck from when she was a consultant then Director (maybe the "Advanced' one now) just to show the difference, but only at trainings. Making exaggerated claims to potential recruits makes a person look dishonest even if it's true and we give a Nancy Jo example with no disclaimers. Biz potential can not be stated a fact as it depends on a lot of factors.

 

[cathyskitchen]

I like showing the "No Risk" flyer for that reason - it shows what you can TRULY make without even recruiting anyone - just selling products. I'll see if I can find it and post it.

 

[chefmeg]

I agree that we each have to uphold the standards of our company....but it sure helps for our company to have good standards!

 

[Addie4TLC]

I like showing the "No Risk" flyer for that reason - it shows what you can TRULY make without even recruiting anyone - just selling products. I'll see if I can find it and post it.

Great!! I was trying to figure out how I'm going to use this. I wont at shows but will find a way to incorporate it at the end of the interview.

 

[Addie4TLC]

I agree that we each have to uphold the standards of our company....but it sure helps for our company to have good standards!

YES!! The fact that it's brought up by third parties is Awesome!! We can tell them till we're blue, how we're different but this is better....

 

[Kitchen Diva]

I like showing the "No Risk" flyer for that reason - it shows what you can TRULY make without even recruiting anyone - just selling products. I'll see if I can find it and post it.

Please do!

 

[cathyskitchen]

Here it is - I got it from here, so I can't take credit (THANKS CS!)

 

[Kitchen Diva]

LOL- thanks Cathy!

 

[PChef_ang]

This was a great read. Another reminder why PC is a great company to be a part of!!

I had actually had a conversation with another DS consultant and they have actually signed up people they know and do the shows themselves and submit them alternating between the people they've signed up. The thought had never crossed my mind. I was told you need to know how to work the system, I was kind of shocked...

 

[cathyskitchen]

OMG, Ang - I would NEVER do that, either! I wouldn't even dream that up!! If I don't earn Directorship honestly, then I don't really EARN it, right? Unfortunately people like that give us a bad name. All we can do is hold our heads high.

I actually had 2 women join my team this year b/c they like the way I run my business and they wanted to learn it from me the RIGHT way - that meant a lot!!

 

[byrd1956]

Boy the article sure can scare a person. I have recently become involved in BeautiControl and although they suggest having an inventory it is not mandatory. I was told that your upline does not make anything off of you. I have not found any information in everything I was sent that tells me they were wrong. My sister and I just love the products and how they work; I have not done any in-home shows yet, just catalog shows. I guess I'll see how things goes with BC. I do like PC (the company) and of course the products. (it amazes me how Doris began and what has become of that small beginning) I do not have a director that is on me and so far I have been able to keep active w/o making a purchase myself. After what our tax lady told us in March I really thought about quiting, but decided to wait and see how it goes, too. Sometimes I have felt resentful of PC (the amount of time spent on the business is way more than the amount earned....at least in my case). My DH has complained about the amount of time I spend online or on the phone, but he has not complained too much about me leaving when I have a show. (of course I have no young children at home) He does show dissappointment at the low sales of most of my shows, but he has not encouraged me to quit. He knows I love my day job and do enjoy doing PC and so far it is ok w/him.
Cathy, thank you for the no risk flyer. I have always been totally honest w/anyone interested in the business. I tell them how I do and I also tell them that my director put 2 kids through college via The Pampered Chef.

 

[JAE]

Very interesting article. It's a shame that people are unethical. Anyone can ruin even The Pampered Chef's reputation. Hopefully, there are enough of us out there doing the right things to off set the few who are deceptive.

 

[Addie4TLC]

Boy the article sure can scare a person. I have recently become involved in BeautiControl and although they suggest having an inventory it is not mandatory. I was told that your upline does not make anything off of you. I have not found any information in everything I was sent that tells me they were wrong. My sister and I just love the products and how they work; I have not done any in-home shows yet, just catalog shows. I guess I'll see how things goes with BC. I do like PC (the company) and of course the products. (it amazes me how Doris began and what has become of that small beginning) I do not have a director that is on me and so far I have been able to keep active w/o making a purchase myself. After what our tax lady told us in March I really thought about quiting, but decided to wait and see how it goes, too. Sometimes I have felt resentful of PC (the amount of time spent on the business is way more than the amount earned....at least in my case). My DH has complained about the amount of time I spend online or on the phone, but he has not complained too much about me leaving when I have a show. (of course I have no young children at home) He does show dissappointment at the low sales of most of my shows, but he has not encouraged me to quit. He knows I love my day job and do enjoy doing PC and so far it is ok w/him.
Cathy, thank you for the no risk flyer. I have always been totally honest w/anyone interested in the business. I tell them how I do and I also tell them that my director put 2 kids through college via The Pampered Chef.

I can relate to your post as I felt like that after my 90 days. I had an awesome start over $15,000 in my super-starter months. I was doing way too many shows and with a full time job was away from my family a lot. I had not recruited a single person, my focus was selling. Then someone from HO contacted me and explained what the potential was in my area, had I kept up that pace I would have burnt out. I focused on recruiting after that and became a Director in 4 months. Now my paycheck is about the same with less time away from my family. I love my day job too, there is no stress I know it like the back of my hand and there are great perks. I would never have thought that I could even consider quitting to do something like this full time but I do have small children and my goal now is to do just that.

Hang in there, even if you just want to do it part time. Enjoy it and have fun with it.... that's contagious no deception necessary. People will be attracted to that and you never know later on...

 

[Addie4TLC]

Boy the article sure can scare a person. I have recently become involved in BeautiControl and although they suggest having an inventory it is not mandatory. I was told that your upline does not make anything off of you. I have not found any information in everything I was sent that tells me they were wrong. My sister and I just love the products and how they work; I have not done any in-home shows yet, just catalog shows. I guess I'll see how things goes with BC. I do like PC (the company) and of course the products. (it amazes me how Doris began and what has become of that small beginning) I do not have a director that is on me and so far I have been able to keep active w/o making a purchase myself. After what our tax lady told us in March I really thought about quiting, but decided to wait and see how it goes, too. Sometimes I have felt resentful of PC (the amount of time spent on the business is way more than the amount earned....at least in my case). My DH has complained about the amount of time I spend online or on the phone, but he has not complained too much about me leaving when I have a show. (of course I have no young children at home) He does show dissappointment at the low sales of most of my shows, but he has not encouraged me to quit. He knows I love my day job and do enjoy doing PC and so far it is ok w/him.
Cathy, thank you for the no risk flyer. I have always been totally honest w/anyone interested in the business. I tell them how I do and I also tell them that my director put 2 kids through college via The Pampered Chef.

I can relate to your post as I felt like that after my 90 days. I had an awesome start over $15,000 in my super-starter months. I was doing way too many shows (some high some very low) and with a full time job was away from my family a lot. I had not recruited a single person, my focus was selling. Then someone from HO contacted me and explained what the potential was in my area, had I kept up that pace I would have burnt out. I focused on recruiting after that and became a Director in 4 months. Now my paycheck is about the same with less time away from my family. I love my day job too, there is no stress I know it like the back of my hand and there are great perks. I would never have thought that I could even consider quitting to do something like this full time but I do have small children and my goal now is to do just that.

Hang in there, even if you just want to do it part time. Enjoy it and have fun with it.... that's contagious no deception necessary. People will be attracted to that and you never know later on...

 

[byrd1956]

Thank you for the positive comments. I do have fun w/it and I think people at my shows can tell I do. It just amazes me that some of the consultants I know consistently have over $1000 shows. I sometimes think it is the economics of the area they live and work in compared to where I live.

 

[Addie4TLC]

Thank you for the positive comments. I do have fun w/it and I think people at my shows can tell I do. It just amazes me that some of the consultants I know consistently have over $1000 shows. I sometimes think it is the economics of the area they live and work in compared to where I live.

Oh YES!! That plays a big part. I found that with the shows where I sold very little people were more in need of or interested in the opportunity. At the shows where I sold more they would make comments like "I could never do this, you must have a lot of patience." The trick is to find the good in every scenario and work it. The 1,000 shows will come your way when you least expect it, the host coaching and preparation will pay off and sometimes you're just at the right place at the right time. Don't be afraid to venture out.

 

[missmindym]

I have to say I found the article interesting, at times scary, and a lot of times untrue. I grew up (from the time I was 12) with Mary Kay. My mother was a Consultant, she went to Seminar (NC) every year except for the 2 or 3. She worked hard, she became a Director, she drove a free car. Never once did she give up her morals or values to do things the wrong way or the "easy" way. She really believed, and still believes to this day that it is a wonderful opportunity for women. I learned my customer service and many of my other skills helping in her office. She had to get quit for personal reasons, but misses it and talks about it all the time. Mary Kay Ash was a hero in our house. I have a great deal of respect for the woman and the company. I don't know a lot about how they do business anymore, but I still buy all of my cosmetics through them. I refuse to put anything else on my face, I've tried, lol, and it's always a disaster.The only reason I'm not doing Mary Kay is because I'm not that into make up anymore. I use their product, but don't feel that I would represent it well. And besides it was my mom's thing. I wanted something of my own, that I could do part time, and to give me something else to keep me busy while my dh is in Iraq for the second summer in a row, and because I love the product and wanted to be able to get it cheaper/free. I do like that I don't need to worry about having inventory, I don't have the space for it. I don't think the blame is all on any of these companies. I believe it's on the individuals who want to make that $$ anywhere they can, and they will tell people anything to get there. If someone is naive enough to think that making hundreds of thousands or millions is typical and can be done just a couple of hours a week, they need to re-think. I'm not saying it's not possible because there are people making it, but it's not typical, and they didn't do it by doing 1 or 2 shows a month.

 

[Addie4TLC]

My mom sold MK as well when I was younger and Tupperware and I have fond memories of helping her fill out order forms and explaining things to people when my mom was not available. Like someone said here it's how each individual choses to do the business that determines the outcome and if they use questionable tactics to move up and grow.

I heard on the radio today that there is a better chance of becoming President or being in an airplane accident than there is winning the Lottery, but it doesn't stop people from thinking and hoping they can. Some people play to other peoples' insecurities, hopes and dreams for their families and exploit that, that's the sad thing.

 

[chefmeg]

Addie, that is a great way to put it! If enough people start to be dishonest and pass that onto others, it won't take long for any company to have problems.

 

[chefann]

Excellent point! That's why it's important to follow the policies and not try to bend the rules regarding host benefits, etc.

 

[Addie4TLC]

Excellent point! That's why it's important to follow the policies and not try to bend the rules regarding host benefits, etc.

I thought about that when I read that. It starts out with a little bending until you have a pretzel on your hands.

 

[jrny2001]

Boy the article sure can scare a person. I have recently become involved in BeautiControl and although they suggest having an inventory it is not mandatory. I was told that your upline does not make anything off of you. I have not found any information in everything I was sent that tells me they were wrong. My sister and I just love the products and how they work; I have not done any in-home shows yet, just catalog shows. I guess I'll see how things goes with BC. I do like PC (the company) and of course the products. (it amazes me how Doris began and what has become of that small beginning) I do not have a director that is on me and so far I have been able to keep active w/o making a purchase myself. After what our tax lady told us in March I really thought about quiting, but decided to wait and see how it goes, too. Sometimes I have felt resentful of PC (the amount of time spent on the business is way more than the amount earned....at least in my case). My DH has complained about the amount of time I spend online or on the phone, but he has not complained too much about me leaving when I have a show. (of course I have no young children at home) He does show dissappointment at the low sales of most of my shows, but he has not encouraged me to quit. He knows I love my day job and do enjoy doing PC and so far it is ok w/him.
Cathy, thank you for the no risk flyer. I have always been totally honest w/anyone interested in the business. I tell them how I do and I also tell them that my director put 2 kids through college via The Pampered Chef.

I had a BeautiControl Spa party last fall. I liked the stuff too, But the consultant kept telling us how many THOUSANDS she makes a MONTH and if anyone showed an interest in a product she was on them to sign up "for the discount"
I couldn't believe it. I felt so bad for inviting people to my house for that.

 

[Addie4TLC]

Like they tell us "we're not in business to sell kits", it seems that with other companies it is encouraged just for the discount. It's very tempting to do that especially if it's something you like but we have to be careful.

 

[pampchefrhondab]

I actually did a recruiting talk last night and I was so proud of myself. I ran the numbers of what I have made so far this year. I asked if anyone would like to get rid of one of their bills a month. They acted like they knew where I was going, but I went on. I said I just had to let them know if they ever thought about doing something like I do now was the time to join (went on to explain the 50% rebate - had them look at the kit on the back of the catalog). I then said, "Before I came tonight I looked at my average for the year." I said, "I have averaged 2 shows a month and brought home $300/month." "If I worked a part-time job at $6 and hour I would have to work 50 hours." That got their attention and they were shaking their heads saying, "wow." I didn't recruit anyone, but it's giving me more confidence to talk at my show again Thursday!

I can't take credit for these ideas, I've gotten them from different places, but I was really glad I did it. It's like that waitress offering dessert!

 

[Addie4TLC]

Good for you!!! You broke it down for them and didn't exaggerate. Who knows you may get some referrals!

 

[AnnieBee]

Just wanted to add that I totally agree with missmindym, and also chefmeg and chefann have great points too!

One thing that I thought of as I have mulled this over since yesterday, was that this is a piece of journalism. I have no reason to doubt that it was all true, but I would guess that the reporter used the worst examples she that found to write about. Who knows how many of the MK (and other company DS reps) are like that, and how many are not?

Let's just all use integrity in how we portray our business opportunity! The truth is much more believable anyway! And as Rhonda pointed out, even bringing home $300 a month is nothing to be sneezed at, there's no need to exaggerate . And I would guess that most people are more attracted to shows/selling than recruiting anyway!

OK, off my high horse, and I'm going to try to cut back on the !!!!'s (!)

 

[byrd1956]

I had a BeautiControl Spa party last fall. I liked the stuff too, But the consultant kept telling us how many THOUSANDS she makes a MONTH and if anyone showed an interest in a product she was on them to sign up "for the discount"
I couldn't believe it. I felt so bad for inviting people to my house for that.

Boy, I can't imagine making thousands of dollars a month. If there is a benefit for BC consultants to sign someone under them, I have not been told what it is. I know I'll do some spas and I will let people know how great the products are, but why be pushy? I just can't do that and I am way honest about how things are going w/me and the business to be a good recruiter.

 

[PChef_ang]

My director likes to have 2 people come up and have 1 person work at the mall for $8/hour and the other be a PC consutant. She has laminated play money and pays each person for their time spent. It's a really good visual...