While doing my time with blowhard Bob, I had to do a lot of research into multi-level marketing. Most people have a distaste for MLMs becuz they equate them with pyramid schemes. Since I was writing to promote the mlm industry, I tried to play up their advantages. It wasn't long into this project that I could definitely see why people don't like mlms.

Most every company I looked at had some warning signs. Blowhard Bob liked to say that mlms aren't pyramid schemes, cuz pyramids are illegal. That's a rather ignorant view. Many mlms operate just this side of the law, and in fact, blur the line. Here are the things to check:

1. Money up front. Do you have to pay a lot of money, under the guise of inventory or business tools?

2. A legitimate mlm will buy back unsold inventory.

3. Does the company want to establish a market for its products?

4. Does the company want to sell the product, or is it more interested in signing up other distributors?

5. Do you make more money recruiting than by your actual sales?

6. Are you given commission for recruiting others?

Most every mlm I had to research (which was about 500) had some of these above warning signs. I've always wondered why a manufacturer goes the route of multi-level marketing anyway, rather than going the retail route. Are they trying to hide something? If their product is so great, why on earth don't they get it out to the masses? Where's their so called magnanimity, when they're hiding it through an mlm plan? I can't tell you how many of these mlm companies all said the same thing: they want you and everyone on this planet to have a better life, so that's why they've made their products and this one of a kind business opportunity. Um, okay...but why hide it in an mlm? Why not try to retail it? And why are there so many rules against business owners putting the mlm products in their stores? So many mlms don't even want their distributors blogging about them, which I think is really strange. That just doesn't make sense; if they truly believe in their product and want the world to know the latest and greatest miracle cure/miracle service, why not give it publicity!?!

My theory on multi-level marketing is this: the companies are founded upon insecurity and avarice. They're insecure in their product in that it won't hold up to scrutiny in the regular market place. They can't use the excuse that it's an alternative health product so they have to try alternate routes. Balderdash! Do you know how many alternative health stores and websites there are!?! Heck, I regularly shop at many of them - lol! These mlm companies are also rife with avarice. If they have to sell to retail stores, the stores would laugh them out the door if they offered the so-called wholesale prices that they charge their distributors. MonaVie charged me $37 for one bottle their acai juice, but if you add the shipping and handling, it equaled about $40 a bottle. They say you can only sell it at $45 retail. $5 isn't much of a profit AT ALL! Who wants to spend all that time haranguing (and alienating) your friends into purchasing a VERY expensive bottle of juice that you can get at a vitamin shop for about half or a quarter of the price, for just a measly $5 profit? Who wants to have to knock down doors trying to earn $5 a bottle? True, you can purchase Mona Vie in bulk, but I think the cheapest wholesale price was $29 a bottle. However, at that price, you're having to put out a few hundred bucks to get that "deep discounted" rate. In retail, stores generally mark up products at least 50%. If they did that with Mona Vie, you'd be talking bottles that cost close to $75 to $100. The last I checked, flecks of gold weren't in my MonaVie - just weird slimey green floaters.

So, that's just my little theory on why mlms go the route of multi-level marketing: their products can't stand the scrutiny retail would bring, nor can the greed of the companies' executives be adequately fed.  MLMs prey upon people who want to get rich quick, or at least have financial freedom, a Mercedes, and world travel.  It's something we all want, and if you look at several (or several hundred, in my case) of their presentations, they're all interchangeable:  preying upon the fears and insecurities of people in a fearful economic climate.  I was just so amazed at how similar, and almost word for word, their snake oil sales pitches were.  But hey, as P.T. Barnum said, "There's a sucker born every minute."