Residual Income

I guess it depends on how you define the word Moral. Websters defines moral as “right or wrong”, but of course they don’t define what right is or what wrong is. That of course is the problem.

The bottom line is that it’s a matter of opinion.

Some say **** in not a moral way to make money.
Others say that it is.

Some say gambling is not a moral way to make money (I mean for the casino owner or the state who is running a lottery).
Others say that it is.

If it is legal, then is it moral? To some yes, others say no.

How about abortion? Moral? It’s certainly legal. Many people think it is very immoral. Others think it’s just fine.

So the answer is that it’s all up to your opinion. There will always be some who think it’s immoral and others who think it’s perfectly moral.

If you want my opinion I say MLM is moral as long as the MLM company is “honest” about “all” of the details on how it works. Many MLM companies only give you sugar coated information and hide the down side. This in my opinion is immoral. It’s not the MLM that’s immoral, but the dishonesty about the MLM.

MLM is in my view “semi” legitimate for the reasons I just gave above.

I think MLM is a terrible way to make a living.

I think MLM is generally a bad idea all the way around and I would heavily advise anyone to stay away from it all together.

Good luck to you.

By Darren on Feb 17, 2009

Minkow,

I’ve had very few experiences with MLMs and have never been a member of such a network. However, what I’ve observed leads me to believe that they are not legitimate businesses (and therefore not morally acceptable ways to earn a living). That’s not to say that they aren’t legal, but that’s a separate issue.

First off, let me draw a distinction between MLM and direct sales. There are plenty of legitimate companies that employ a direct sales force in the field. What distinguishes an MLM in my opinion is that new members are required to purchase goods for resale from someone upstream in the organization.

The new members then try to recruit others and sell them product for further resale. The product gets marked up each time it passes hands (with a share kicked back upstairs), so before long it doesn’t make economic sense for anyone to buy into the scheme. (Nobody wants to buy a no-name bottle of shampoo for $10 when you can buy a name brand at Target or Wal-Mart for $4.) The person at the bottom of the pyramid usually ends up with a whole garage full of boxes full of product that he or she can’t use and can’t sell to anyone else.

The reason these are not legitimate businesses is because they are not built around the idea of creating value for the end customer. The “products” are usually overpriced and inferior compared to common brands you can get at any store.

That’s why these organizations are all about recruiting. They never want to face the moment when they actually have to sell product to a real customer. What they are really selling are memberships in a pyramid scheme with inflated promises of instant wealth and “passive income.”

By gimmesome on Feb 18, 2009

MLM’s are legal whereas pyramids are not. I see here that there is some rather distinct opinions so I want to try to clarify some of this.

There are some MLM’s that are better than others in huge extremes so what I always suggest people do is to first off, check them out with the BBB. Find out how long standing they are, what their history is like because any MLM that is a scam or treats people horribly will not last long as MLM’s are about people moving product.

So, the people moving the product is definitely where the money is coming from….no question there as there has to be an end product being sold to make the money, yes?

The reason it’s not sold “in the real world” is that it’s marketed differently. Instead of being advertised on TV, MLM’s use (or should I say pay) people to do the advertising and in much better detail than any other media can do. Those people specialize in that product or line of products. For example:

You walk into a health store and want a multi-vitamin. Which one is best? You hope the clerk knows but yet the next time you walk in and it’s a different clerk who suggests a different brand. Confusing? You bet. Id’ rather get a product from someone who has come to know me and my needs without having to go to the store to purchase it.

Whether you’re looking to join an MLM or purchase from one, always do your research on that company, find out everything you can about them before you commit to them in any way. Feel free to check out my profile if you’d like more info.

By Diva on Feb 20, 2009

An MLM or networking company works similar to any other retail. Think about it. If you were a franchise owner and you owned 10 franchises of a fast food restaurant, but you never stepped into one to actually work. Would that be moral? Sure, that is how the business works. That is how MLM’s work, well kind of. I am currently in an mlm and I still have to recruit people and sell our service. The great thing is, it gives others and affordable opportunity to make their own money and own the own piece of the business. I actually would recommend them to people because of the flexibility. Of course, I would also recommend researching a company before getting involved. Some companies one will not make a great profit, others you will. Good luck and I hope this answers your question.

By gatorgirl on Feb 21, 2009

MLM or network marketing is an acceptable way to make money. To help you choose a company with integrity, though, and to enable you check out other important aspects, you need to be trained in what to look for.

There is an organisation that offers free MLM training to you (and your downline) and will answer any questions you have.

There is even a free e-book for people interested in MLM that you can download.

By bob.gill39 on Feb 21, 2009