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!

Other helpful MLM educational sites

Here are some links to sites with additional information about Multi-Level Marketing (MLM).

www.falseprofits.com An expose and analysis of the MLM industry. Pay particular attention to this article, entitled “A Disguised Pyramid Scheme.”

www.mlm-thetruth.com Dr. Jon Taylor’s extensive research on the MLM industry. There is a 5-step evaluation you can do yourself to test that business opportunity you’ve been thinking about.

www.pyramidschemealert.org Lots of information about the deception and harm of multi-level marketing and pyramid schemes. Be sure to read The Ten Lies of MLM.

www.rickross.com The Rick Ross Institute is a nonprofit group that studies destructive cults and controversial groups. There is a huge databaseof articles, court documents, and essays on hundreds of groups.

www.quatloos.com An educational website run by the Financial & Tax Fraud Education Associates, Inc., a non-profit group. Lots of information here and a great forum.

www.vandruff.com “What’s Wrong With Multi Level Marketing.” Recommended reading.

www.ftc.gov The Federal Trade Commission has an entire section dedicated to educating and informing you about business opportunities and MLMs. Be sure to read The Bottom Line About Multilevel Marketing Plans.