Did Bill Clinton Endorse Network Marketing?
A reader sent me a video that has been making its rounds onFacebook. Apparently all the network marketers are promoting this one in an attempt to add validity to the MLM business model.
The thing is, Bill Clinton DIDN’T endorse network marketing. He endorsed direct selling. There is a difference.
On the video, when Bill Clinton says the words “direct sales,” the words “network marketing” appear. No doubt the person circulating this version of the video wants those two phrases to be interchangeable.
But direct selling means just that: selling directly to the consumer outside of a retail location. Think AVON. Think Tupperware.
That said, it is true that most of the organizations that are members of the Direct Selling Association have a multi-level component to their business, meaning if you recruit others into the business you make commissions from the sales those recruits make in addition to your own sales.
The endorsement of direct selling is not an endorsement of the pyramid-like structures of network marketing companies, although many of the people envolved in these MLMs are really trying to make it so.
Here’s the video. Enjoy!
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Well written LJ! Thanks for posting the article. I agree with all that you are saying. He did endorse Direct Selling but not Network Marketing. I don’t know what the original title of the video was, but I am pretty sure that it was changed by the person who posted it when you look at the video and think about. I think that it is sad that whomever put the words network marketing in the video even though he didn’t mention the words. I tell you this is going to cause more harm than good because some aren’t going to realize the difference.
Thanks for posting this!
When direct sales has a payment structure to give incentive to train others to sell the same product, it is network marketing. There’s not a huge leap from one to the other. When BC talks about “offering opportunity to others” he is talking about Network Marketing, make no mistake about it.
Amen Blaze. On point with that one. Network marketing is the business of using a product or service to help people develop the leadership, teaching, and management skills necessary to be successful in any work place. It just happens that they are rewarded for teaching others to lead and develop those same skills. That’s the “opportunity” that one direct sales person can offer to another who is interested in doing the same, hence networking.
“When direct sales has a payment structure to give incentive to train others to sell the same product, it is network marketing. ”
Network Marketing is a business where you receive a commission on the sales of the others that you bring in to the company. It doesn’t automatically mean you’re training them. It just refers to the structure. If you receive some sort of benefit, monetarily, from recruiting, then you’re in an MLM or Network Marketing company.
I would guess that Bill Clinton never heard of Network Marketing or MLM before, like most of the population. I believe when he speaks of opportunity, he is talking about the opportunity of the individual being able to sign up with these companies in the hopes of making money. It doesn’t automatically translate into the recruiting part of the business at all. But millions of people wrapped up in these MLMs sure want it to validate them.
“Network marketing is the business of using a product or service to help people develop the leadership, teaching, and management skills necessary to be successful in any work place.”
Gobbledigook!
If you want to learn leadership, teaching, and management skills, there are DOZENS of legitimate ways to do so.
Many people join Network Marketing companies because they think they are really going to make money (usually lots of it) with very little time and effort. And why shouldn’t they think that: it’s how these Network Marketing companies portray their businesses. They make people think that they can make thousands of dollars per month.
LJ, are you kidding? Many people join Network Marketing companies because they think they are really going to make money (usually lots of it) with very little time and effort. And why shouldn’t they think that: it’s how these Network Marketing companies portray their businesses. They make people think that they can make thousands of dollars per month. REALLY? What makes you think people are not making thousands a month? Its people like you that make it hard for new people, I am glad I did not give up like the rest that do from people like you getting in there weak minds!
LJ, what is this comment all about? **If you want to learn leadership, teaching, and management skills, there are DOZENS of legitimate ways to do so. *** The only Real pyramids out there that make MLM look bad are the mailers that make everyone send money, or when you get paid to recruet without a product or service, And yes you do need to train your new person, there success is yours! You want to talk about pyramids, CORPORATE AMERICA IS ALL A PYRAMID! OPEN YOUR EYES!!!!
I would not be taking this personal if I myself was not changing peoples lives! I should have my group on here!
Robert, I think you’re protesting a bit too much! We know how Network Marketing changes lives…those at the bottom get taken and those at the top are the takers!
That’s right, Robert. Pretty much EVERY Network Marketing company out there makes great claims about how much money you can make. It’s always something like $5000 in 2 hours a week.
So why WOULDN’T people think that it’s easy money? That’s exactly how it’s portrayed.
But then they sign up for these “opportunities” and are faced with the realities. Hardly anyone in these “businesses” are making money. Many of these companies aren’t even around a year or two later. It’s a great way to make money — for the people who start the companies!
So people are lead to believe that with little effort and time they can make a great income. BUT…then when they join, and find out what it’s really like, and DON’T make that income and realize it’s practically impossible (and is impossible the way it’s presented), suddenly they’re LAZY?!
I hear it all the time. One day you’re a great prospect. The next day you’re a lazy loser. Wonderful.
Some people are indeed getting thousands of dollars a month. But usually there’s no mention of the accompanying expenses or the time put into these “part-time businesses.”
Are YOU making thousands of dollars a month Robert, or are you so worked up and defending MLM blindly like so many people? If I had a dime for every angry Mary Kay consultant, for instance, who defends the company yet is making less than a few hundred dollars a month, I’d be pretty happy!
Oh…and Robert…people who have to cut people down and call them names, like your “weak minds” comment, just reveal their immaturity, insecurity, and lack of basis for their argument.
I’ve heard the “corporate America is a pyramid” line so many times, and it still makes me laugh. Of course there isn’t a business out there that is “all chiefs and no Indians” (to paraphrase the old saying). In corporate America, there is a structure of managers, supervisors and workers. But all these people have jobs and are making money. They have a salary. An actual income that goes with their position.
Structure doesn’t make a pyramid. Practices do.
Yes, I agree that Bill did not use word ‘Network Marketing’…..BUT
(1) All people who have a slight knowledge/experience (good/bad) in NWM knows that Network Marketing is ALSO very well known through out the world by many other names like MLM, Referral Marketing, Word-of-Mouth, one-to-one, B2C, Direct Selling etc.
(2) Only saying that Bill did not use WORD Network Marketing, is out of context of the whole message. If you listen again, you will find all the other lines/words/explanations by him CLEALRY describes the mode that is the essence of Network Marketing.
Network Marketing and Direct Sales are NOT the same thing. AVON was the original direct seller, if I’m not mistaken, and there was never any “Network Marketing” involved in that company until relatively recently.
Network Marketing, MLM…whatever you want to call it this week so people think it’s something else…involves recruiting others under you to sell the products.
Direct Sales is a term that has been warped by the inappropriately named Direct Selling Association and the fact that most of the industries who join this semi-bogus association are MLMs doesn’t help the confusion either.
It’s abundantly clear that LJ merely thinks she knows what she is talking about, when in reality, she is ignorant beyond belief regarding this business model.
So, everyone that works gets a salary. That comment in itself is laughable. Ever heard of commissioned sales people? There are Tens of MILLIONS of them in the world that only get paid based on THEIR performance and efforts and production. I can understand if this particular business model isn’t for you. For most it isn’t. They need the security in knowing that know matter how much or how little they do that they’ll receive a paycheck at the end of the week. I here it all the time about why someone can’t or won’t enter into a business based strictly on their performance and it quite frankly boils down to one simple thing, self confidence! I harbor no animosity towards these people. There is something to be said for the security of an hourly or salaried job. However, in doing so, I realize what they either don’t, or do and are perfectly content with, that they have effectively restricted their growth, both personally and financially. I can only present them with my product and opportunity. If they want the product or are interested in pursuing the business opportunity I am more than happen to sell it to them or bring them on board and teach them everything I know. Because as they grow, so do I. If not, no harm, no foul. NEXT!
I’ve been in all aspects of the corporate world, from straight Salary (Talk about potentially abusive corporate practices. No matter how many hours you put in, your pay check doesn’t change a bit.), to hourly (But only the people at the top are REALLY making the money, RIGHT!), to commission only (Which can be good or bad depending upon the compensation structure.) that is SOLEY based on your individual skills, abilities, and performance and work ethic. This can be Great for the company and Great for the commissioned sales person. Why, because your income potential is unlimited. You’re bound merely by your ability to actually make things happen. You see, regardless of what you think about Direct Sales, and yes legitimate Multi Level Marketing falls into this category, Direct Distribution, Network Marketing, Commission Only, One – on – One, B2C etc… The company wants you to succeed and do well. Why, because your growth and prosperity directly correlates to their growth and prosperity. How great can that be for anybody wishing to increase their income and define their own lifestyle?
I’ve personally received checks of over TWENTY THOUSAND Dollars from 1 commissioned sale and I’ve also received painfully small commission checks. All the while knowing, it wasn’t the company’s direct efforts that caused either.
Regarding your remark about only the people at the top make the GOOD money. Once again, your ability, performance, skills and work ethic dictate your compensation level. You see, I’ve either owned or been a part owner in several businesses, only ONE has anything to do with direct marketing. So I’m quite aware of the PYRAMID structure of businesses. If in your utopian views ALL people should be compensated the same from the CEO to the lowest person on the totem pole, I can do nothing more than laugh. The absolute truth is ALL businesses follow a pyramid structure. Look at the hierarchy in any business and you will easily see the offensive pyramid you speak of. Will all make great money or make it to the top? NOPE!!! Will all fail abysmally? Absolutely Not!!! I would say that you chances of becoming the CEO of a major company in a few short years are greatly less than your potential to become a well paid distributor for a good Network Marketer / Distributor.
In fact, the ONLY difference between legitimate MLM and any other Commission Only sales opportunity is that with Direct Distribution, or if you will Network Marketing, you have the ability to recruit a Sales Team to work with you to legitimately move a products or services and receive compensation for your efforts in doing so based on their production, in addition to you own. Now, for the life of me, I can’t see how any logical mind could find fault with such a fair compensation plan. But there’s always HATERS. Always has been, always will be.
Now Pyramid Schemes on the other hand, are when there is NO Product or Service being offered, period! Those are and should be illegal in all 50 States. But please don’t paint a legitimate business model with the broad brush of an illegal activity.
Another pertinent FACT, MLM, Network Marketing, Direct Sales, Direct Distribution, etc… IS and should be legal in all 50 States. You see, the Government, ALL Governments (Federal, State, and Local) frown on illegal business activities. That’s why they’ve enacted laws to prohibit them.
I also find it absolutely amusing and quite frankly idiotic regarding the statement about the cost and time requirements. At least with my business, it’s perfectly clear what it costs to get set up and running. You would have to be seriously delusional if you think that ANY business requires NO monetary or time investment to be successful. But if you find that legitimate business model please let me know, I’d love to emulate it. I mean, how could one possibly lose at it? If there is no monetary or time commitment and you get paid for it. The only thing I can think of the fits those parameter is WELFARE! But then again, that’s not a business model or very successful is it.
I’ll part with these words; there are very legitimate Network Marketing, Direct Distribution / Sales opportunities available that one can be successful at. Pay no mind to the nay sayers but do go into it with your eyes wide open. Look at the company, the product(s) and the overall opportunity. Ask many questions and be willing to invest in yourself and your business. With the right product, opportunity, Company, upline, and attitude, you can take advantage of one of the least expensive mechanisms left for the average man or woman to ultimately BE YOUR OWN BOSS and achieve YOUR dreams.
I can be reached at REMOVED BY ADMIN for comments or questions.
Wayne,
Do these businesses you mention state that you can make executive income working part time, as little as 10 hours per week, as Mary Kay does? Do they tell you to basically lie to your spouse, take out credit cards for inventory without discussing it with your spouse, that you can ask foregiveness as easy as permission, as well as other shady ideals? The presentation of the “opportunities” is inaccurate, to say the least.
Personally, I don’t doubt that you can be successful at some of these type businesses - I just don’t think you can earn “executive income” on 10 hrs per week. The lies and manipulation used in Mary Kay are extreme and borderline cultish. These are not “accepted business practices.”
I agree with LJ, “So people are lead to believe that with little effort and time they can make a great income. BUT…then when they join, and find out what it’s really like, and DON’T make that income and realize it’s practically impossible (and is impossible the way it’s presented), suddenly they’re LAZY?! I hear it all the time. One day you’re a great prospect. The next day you’re a lazy loser. Wonderful. ”
Just my $ 0.02
Well said, Tam and worth a lot more than $0.02!!!!!
Tam,
I can’t speak for Mary Kay, have no desire to and have never had a desire to self anything in that product line.
Is that your personal experience with that company?
Are you saying that people can’t make good money in Network Marketing? Is this because you’ve failed, therefore all others will?
You said;
“Personally, I don’t doubt that you can be successful at some of these type businesses - I just don’t think you can earn “executive income” on 10 hrs per week.”
So what you’ve actually suggested to the world with this comment is that in reality, you don’t know what you are talking about. This is where I have my problem.
As I said before, will all people be highly successful or an abysmal failure, NOPE!!!!
But then again, show me anything in life with guaranteed success.
EDITED BY ADMIN
Have a nice day all:-)
Thank you for the insult Wayne!
I love it when people put words in my mouth and then tell me I’m ignorant. That’s fun, especially when the words are all written and hence can be referenced.
When talking about the tired line about corporate America being a pyramid, I said that people in corporate America had a salary. I will clarify that not EVERY position in America has a salary. Sure, there are sales people who work strictly on commission. I would say, thought, that they aren’t the majority. The point I was trying to make, however, was apparently lost on you.
Where the heck did I ever say that everyone should be compensated equally? That’s just stupid, Wayne. Businesses have hierarchy but that’s not the same as a pyramid. Do you think businesses should be comprised of all executive level or all employees? That would be dumb, wouldn’t it?
Absolutely, positively FALSE. Pyramid Schemes are such because of their structure.
If you’re even remotely paying attention to the things going on with the economy and the “legal” business practices that are coming to light right now, you realize how ridiculous this statement is. There a lots of things that are legal that get through only by the skin of their teeth. But again, it’s the practices, the stretching of the truth, that these MLMs use to lure people in that get me the most. Then they chastise the people who join when the easy money the companies lured them in with isn’t there.
Most of your rantings are just angry garbage. I know you really want to show that I’m some uneducated loser who is just mad because I was a failure. Too bad. I wasn’t a failure in MK and I’m not in other aspects of my life. I’m not whining. I’m trying to give people info so they go in to these things with their eyes open.
MLM is not your business. It’s a nice business for the companies who start them. They make a lot of money. But if you want a business to call your own, it isn’t an MLM. How can it be your business if you can be tossed out of it or if your existence depends on the company itself? If the MLM company goes under, “your business” is gone as well. At best, MLMs are home-based franchises.
Instead of insulting people here, why don’t you provide something besides YOUR experiences as testimony that MLMs are so great?
Most people won’t be highly success or a great failure. No, that’s not how things usually shake out. And yes, lots of people won’t put in the time.
But guess what, Wayne? In a REAL business, you don’t pay to “join.”
In a “real” business, you don’t try to recruit your customers to sell the same thing you are.
Have fun selling your B.S. chocolate product though. I’m sure that company will be around for at least another few months. By the way, if you like the fact that the government doesn’t let illegal practices exist, then perhaps you’d be open to the FDA being able to regulate all these “health supplement” companies like the one you tout, so that their health claims could actually be verified before they started peddling their miracle products!
Apparently my previous statement was unclear. Yes, I have had personal experience with MK. I said, “Personally, I don’t doubt that you can be successful at some of these type businesses - I just don’t think you can earn “executive income” on 10 hrs per week.”
Quoting Wayne, “So what you’ve actually suggested to the world with this comment is that in reality, you don’t know what you are talking about. This is where I have my problem.”
Wayne, I’m sorry you didn’t understand what I said earlier. I have a problem with people who post threads to their business on sites and then throw insults, repeatedly, at regulars to this site. If I knew what I was talking about, in reality, I might suggest a better PR campaign. If you’d taken any time to review this site, you would realize that we appreciate differing views and discussions, if posted with respect.
Quoting Wayne, “Are you saying that people can’t make good money in Network Marketing? Is this because you’ve failed, therefore all others will?”
No. I am saying there are some people who can make what is considered ‘executive income’ in these type businesses but they will work more than part time hours. Since you’ve never sold Mary Kay you may not realize that it is repeatedly told that you can make executive level income with part time work.
Again, LJ said it beautifully, ” … people are lead to believe that with little effort and time they can make a great income. BUT…then when they join, and find out what it’s really like, and DON’T make that income and realize it’s practically impossible (and is impossible the way it’s presented), suddenly they’re LAZY?! I hear it all the time. One day you’re a great prospect. The next day you’re a lazy loser. Wonderful. ”
Hi all, very interesting thread. I was originally involved with Amway but then stopped when they had to hault all business in the UK when our office of fair trading investigated them due to complaints about the training systems. Amway (as they historically did in the US) won their case, but only by changing practices back to what it traditionally was so that people were not being misled and were actually selling to customers and not self using to make their bonuses each month. It wasn’t Amway directly that was operating unethically – it was all the training systems set up to recruit and train distributors, but Amway should have monitored them better – they have learnt theor lesson though – they have restructured completely now and closed down the training systems.
Now my partner and I are busy setting up our own network marketing business – with the aim of making it the most honest, fair and transparant one available.
I agree that many network marketing companies do put out false claims to get people to join and once you have joined rather than training you properly to build your confidence and get you to a stage of competence with regards to the products you are selling , you are told – get more people! It turns into a business purely about recruiting. It is true that a network marketing structure is supposed to work with your upline training, teaching, and developing their team – but once again this does not happen in many companies.
I do believe that network marketing, when done properly is a great way of earning a substantial income and quicker for most then trying to earn the same additional income through their jobs. What I would say is yes – there are many many bad companies out there where they do operate like a pyramid and you just have to check out the business as much as you can and ask lots of questions.
The reality is that to become a success in anything you have to put in the time and effort, so absolutely you are not going to earn a substantial income with 10 hours a week. The more time you put in the more successful you’ll be – this is the truth that does’t come accross in a lot of presentations – I’ve seen that many times – the worse ones are in a week I made thousands or where you have to have a small coutry in your downline to earn any money! Sad really as these businesses are tarnishing the industry really badly.
Anyway, hope you all don’t mind me jumping on this forum, very interesting read
) Oh and I agree, being rude is NOT necessary to make a point. All it does is weaken it. I don’t respect anyone really that has to insult people to state a case – not needed.
That’s my £0.02 worth.
Regards
Lisa
If you want to set up an honest, fair business…I’d suggest you look at something besides network marketing!
Lisa,
Thanks for your very polite post (a refreshing change!)…just an FYI, since I’ve been burned by one MLM…I refuse to have anything to do with any MLM….even if I like the product I will not support MLM’s. Hopefully you will keep that in mind as you grow your business. Best of luck to you and cheers!
Hello Everyone. I understand the resentment and misunderstanding. Is it not ok to ask what the differences are. Being in the Army it was a total pyramid. Some people say start a business of your own. Unless you grow, mine,or invent you control nothing. As a farmer i try to be a business person but then some say we only make our money throught government moneies. Then ther is the bail outs of the Savings and Loans during the 80’s. Now we have the banking world and they are the best businesses in the world. Or GM. People getting bonuses yet company is in chapter 11 protection. Or a company is in one country so they slow down or just out right close the doors to protect the workers or the home plant till things change. Remember business is just doing business. When a government allows myself to deduct expences on tax forms please tell me how something is illegal. It maybe gray but everything can have a down side. Yes I am looking at a couple of these MLM’s as a farmer they say I am a cash cropper. Most years I see the crop but not the money. The money comes from tax laws and direct from the government. I feel you take a chance as they say buyer beware. If it seems too good to be real and they promise it has no work well for sure run the other way. I do see MLM’s do have a place.
Thanks for your time to read this
R.J
Wow!!! There certainly are a lot pf people out there with network marketing misconceptions!
”I’ve been burned by one MLM and refuse to have anything to do with MLM” is like having a bad cup of coffee and swearing off the stuff or not buying another piece of clothing for TJ MAXX because 1 item was flawed!!!
Our government system as well as every other business in America is based on a pyramid. there is on ly 1 president… Anyone out there work for Walmart? How likely do you think you will be to become the next Walmart president.
MLM is a method to move products through the market place. These products are generally of higher quality than over the counter prodcuts because the companies put their $$ into R&D and product quality, then sharing the “advertising” revenues with people who use the products and share them with others.
Pyramid schemes are illegal. There is no product movement because there is no product to sell – Danger, Roger Rabbit – Danger!!!
As far s the time commitment…. 20 yars ago I owned several furniture stores. I was lving the American nightmare! I was introduced to a company whose products were phenemonal – So much so that I couldn’t keep my mouth shut! 6 months later – working very part-time, I surpassed my net incmoe my 4 stores were creating. I closed up, moved to the beach and the rest they say is history. I now live a life most people dream about. I sitll use and share the products and teach others how to do the same.
Don’t discount MLM. It is a huge part of our economy. And don’t get me wrong. I’m not here to try and convert any of you, I just want you to keep an open mind.
And MLM certainly is not for everybody. It, like anything else you may want to do successfully takes focus and commitment.
One final interesting fact… The CEO of our company (MLM) is the President of the Direct Selling Association.
Ho hum. How many times have I heard this lame-o line? I lost count.
Just because there are levels of management and levels of workers in a business, it does not make them a pyramid. DUH. A pyramid scheme is distinguished by several characteristics, a main one being that it needs new members to survive.
Pyramid schemes ARE illegal, but there are lots of “businesses” that are basically product-based pyramid schemes. They DO have a product to sell, but most sales are to new recruits and/or there are few real customers. Most MLMs have product to sell, but the sales figures are misrepresented. For instance, in Mary Kay, directors often tout the 2 Billion annual sales and most people are envisioning all of these customers buying MK, when in reality the customer is the MK consultant and the sales are the money the company has made from consultants purchasing products from the company to resell.
I have seen NO EVIDENCE that MLM products are of higher quality in general than over-the-counter products. Absolutely none. There’s also no evidence that these companies put as much or more money into research and development than retail companies. In fact, given that MLM businesses are notorious for people starting, making money from signups and then disappearing in the night, I’d be surprised if the research and development was even equal to retail companies.
And here’s a question: If, as many MLMers cite, the MLM products are “generally of higher quality” than over-the-counter products, then why don’t they sell their superior products in stores? Why, consumers would soon realize the superior quality of their products, surely. Why is it that instead, MLM products have to be sold to people only door-to-door or at home parties? Hmmmm….
Well gee…no conflict of interest there! Most people have recognized that the Direct Selling Association (DSA) is simply a way to give credence to the businesses who are members, most of which are MLMs. Just the name of the association is a euphemism. And looking at the board of directors, it’s easy to see its design as a vehicle to give some validity to these MLM schemes. The vice chairman of the DSA is with Shaklee. Shaklee?! Oh brother! The immediate past chairman is someone with USANA and another was with Mary Kay.
It’s a great idea…get all your companies together and put them under an umbrella association that makes it seem as if these companies aren’t MLM.
The impression most people get, the one the DSA wants you to get is that somehow the DSA oversees these companies in a way that ensures that consumers won’t get taken but that isn’t true. I see no evidence that the DSA does anything for the consumer. They are there to promote these businesses and make them seem like a good risk for consumers to take.
LJ, as usual “You Rock”!