Thank you for providing a space for mums and especially new mums to share and support each other. We think what you are doing is great.
There’s just one thing we need to talk to you about, and we believe it’s very important.
Right now, your site is like a mahoosive hunting ground for MLMs. It’s like the ideal MLM targets are just sitting there, caught up in a net, a net of mums.
Some people we know contacted you and asked you why you allowed so much open MLM recruiting. Thank you for replying, we were glad to get an insight into your stance.
We understand MLMs are, ostensibly, legal (though some have been found to be illegal after investigation).
However, we have a point that we’d like to bring up:
It’s really hard to identify a pyramid scheme pretending it’s a multi-level marketer.
Even the US FTC (Federal Trade Commission) says so.
“Identifying a pyramid scheme masquerading as an multi-level marketer requires a fact-intensive inquiry,” the FTC said in one report. It “entails a complex economic analysis including an in-depth examination of the compensation structure and the actual manner in which compensation flows within an organization.”
Also read below:
and this PDF we nabbed from the FTC (Federal Trade Commission) site:
Of the 350 MLMs I have analyzed for which a complete compensation plan was available, 100% of them are recruitmentdriven and top-weighted. In other words, the vast majority of commissions paid by MLM companies go to a tiny percentage of TOPPs (top-of-the-pyramid promoters) at the expense of a revolving door of recruits, 99% of whom lose money. This is after subtracting purchases they must make to qualify for commissions and advancement in the scheme, to say nothing of minimal operating expenses for conducting an aggressive recruitment campaign – which (based on the compensation plans) is essential to get into the profit column.
The upshot is this: MLMs were invented in the USA but even the US government can’t keep control over them. Why? As per the articles above, there are just too many, and investigations take too long and are too expensive.
Because of this, we would argue that you can’t afford to wait for the law to catch up to the exploitation that’s going on. Because of this, Netmums, we’re asking you to do the ethical thing: ban MLM recruiting from your site. We’ve noticed (and have much evidence of) the way MLMs deliberately target women at transitional periods in their lives: new motherhood, losing a job, etc etc and many of these women came to your site looking for support and companionship. Yes, we know some of these women claim to have made incomes through MLMs, but again, there is much evidence that shows most people lose money in an MLM. Our whole blog is dedicated to penetrating the lies told by MLMs to keep the scams going.
Please, please, reconsider your stance about MLMs on your site.