International Law

More on Lies told by MLM

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Tracy Coenen continues her examination of Dr. Jon Taylor's lies that prospects to MLM are told.

Some of these misrepresentations work because of the underlying psychology of influence.

Here is the one that I consider both deceitful and very effective.

"Unlike franchises, business startups, or sales of existing businesses, you can start an MLM business with very little capital."

Tracy correct counters that "MLM's typically bleed new recruits of their funds by inducing them to buy products on a subscription basis, to pay for ongoing training, and otherwise draining them of their resources until they run out of money or give up."

This insincere promise to the prospect engages two psychological tricks: a) the secular version of Pascal's wager, and b) cognitive dissonance.

First, what is the "secular version of Pascal's wager"?  Crudely, Pascal argued that if it didn't cost you too much, then you should act as if you believe in God because the possible rewards of doing so outweigh the possibility of being damned for all time.

This is a bad but seductive argument.  The secular version is: oh, what the hell do I have to lose, a couple of hundred bucks as the entry fee compared to a chance at becoming an independent business person.  

Never pay to sell someone's good, because as sure as the Sun rises in the east, two things will happen.  First, you won't be very good at selling - I mean after all you just go suckered.  Second, you will be told that you need to buy extra training.

Having made the small investment in the beginning, it will be easy for you to adopt new beliefs, slowly but surely, that convinces you to sink more time, more money, and more energy into a money losing venture.

If you want to be in sales, become a commissioned sales person - do not buy a job, even for a $20 starter kit. 

Full post as published by Misleading Advertising Law on August 14, 2008 (boomark / email).