It might be good to be somewhat skeptical of skeptics

Multi-level marketing (MLM) (also called network marketing (NM)) exhibits a business model which exemplifies direct marketing. Typically, independent business owners (IBOs) become associated with a parent company in a contractor-like relationship. IBOs receive remuneration for shopping within their own business, for selling products and for expanding their network of people ("downline") doing the same.

An IBO receives a percentage of the profits generated by the network of all IBOs introduced to the system by him or her, and also of the profits generated by the people introduced by those IBOs, and so on. A points system, where the points represent the volume of products sold through the IBO network, tracks rewards.

Multi-level marketing has a recognised image problem because of difficulties in making a clear distinction between legitimate network marketing and illegal "Pyramid Schemes" or "Ponzi Schemes". Nonetheless, many NM/MLM businesses operate legitimately in various parts of the world.

When I use the term MLM, it's used in context of legal Multi-level Marketing Companies that are both public and privately held. Should you decide to research MLM in general or even particular MLM companies, you'll find many skeptics of MLM and defenders of MLM. There are tons of links to various articles that have been published about MLM.

One of my favorite articles, Anti-MLM Zealots - Do They Have a Point?, was written by Leonard W. Clements.

Mr. Clements seems to be very balanced in the article I'm about to cite, and he makes a very good point in his insightful analysis of various skeptics. Mr. Clements brings forth a very poignant observation about why it is that two people can review the same material or subject and come up with entirely different conclusions when he mentions the term "researcher bias".

Mr Clements writes, "Researcher Bias is a term used to explain why two opposing groups can study the exact same information yet come to completely contrary positions. People see what they want to see. If you have an agenda to debunk the MLM concept the "evidence" is not hard to find, if that's what you're looking for. It's no curiosity that when each of the three anti-MLM zealots mentioned above were asked to identify the number of happy, successful MLMers they surveyed, or to list the pro-MLM books or magazines they read, each refused to provide an answer (although Taylor claims to have interviewed "hundreds" of MLM distributors, he also claims the best information source are distributors who have failed). It's also no mystery why each describe in their writings the most notorious examples involving only a handful out of the thousands of MLM companies that have existed. The dozens of good, clean, mature MLM programs that have never had any legal challenge, or the thousands of hard working, professional network marketers who practice a conservative, honest approach to their business are completely ignored, as if to create the illusion they do not exist."

I would recommend reading Mr. Clements' materials for a more balanced pro-MLM view of Network Marketing.

Mr Clements suggests that of the various MLM Skeptic sites, MLM Watch, operated by Dr. Stephan Barrett, contains material that is the most difficult to refute. MLM Watch is worth a read if you are interested in doing your own homework. It's always a good idea to read contrasting opinions as you form the basis for your own informed point of view.

The MLM Watch Mission Statement page offers succinct information about MLM Watch. The following is a direct quote from their site as of 05/28/05.

MLM Watch is a project of Quackwatch, a nonprofit corporation whose purpose is to combat health-related frauds, myths, fads, and fallacies. Founded by Dr. Stephen Barrett in 1969 as the Lehigh Valley Committee Against Health Fraud, it assumed its current name in 1997 and has developed a worldwide network of volunteers and expert advisors. Our primary focus is on information that is difficult or impossible to get elsewhere. Our activities related to this site will include:

A long-term perspective is helpful when reviewing sites such as Dr. Barretts. Obviously, he is a well-educated professional (retired Psychiatrist) and no doubt, some of the material on his site offers helpful information. I personally have found some of the information posted on certain MLM Companies to be very helpful.

Let's start off with a casual critique of Dr Barretts web site by looking at his web site description that appears on any search engine. "the vast majority of people who become distributors do not make significant income."

That statement alone is somewhat troubling if it is meant to be an indictment of MLM. Here's a news flash about business Dr Barrett. Most people who start a business fail and many, in fact most, are not successful - especially those who start their first business. The fact that many business people (MLM or not MLM) fail is not a reason to indict business or MLM. Rather, the fact that business people fail and find the where withal to keep trying provides a reason to be proud of those who do succeed - to be proud of those who took risks and overcame the odds.

I for one applaud small business people and those who wish to make a better life for themselves and yet, somehow, this aspect of business and the aspiring business person is sadly overlooked or downplayed or misrepresented in the media today.

I suspect if I have an issue with quack-watch type sites, it relates to their tendency to throw cold water on everything that is not an AMA approved treatment or therapy or whatever. It wasn't that long ago, that Medical Associations refused to view Psychiatrists as legitimate practioners. It wasn't that long ago that Psychologists were viewed with disdain by MD's and Psychiatrists. As an example, it wasn't that long ago that hypnotism, even when used by professional practitioners, was viewed with total disregard by most of the medical community. Today, we can recognize the valuable contributions made to this field of study by Psychiatrist Milton Erikson, who had to deal with professional prejudice that was leveled against him by his peers. It took literally 30 years or so before his contributions were recognized and adopted in large part by the medical community.

So, the point is that many scientists and medical professionals have been proven to be wrong over time. It's somewhat easier to throw cold water on everything than to engage in informed analysis. Unfortunately, some skeptics today developed their opinions based on the experiences of the bad examples in MLM, and don't always base their opinions on first-hand knowledge or an exhaustive examination of all MLM companies, including successful cases as well as those that are unsuccessful. In other words, skeptics are often guilty of practicing the same slip-shod research or methods that they attribute to the subjects of their "articles."

So when reading information from a skeptic's point of view, it's helpful to realize that they have their own view of the world that has changed and is constantly changing, and many may be proved to have been wrong when all is said and done.

On the skeptics side, it is sometimes very helpful to look at various claims through the lens of science or reality and to review claims and companies and products through a disspassionate lens. Too often MLM Companies recruit people with emotional appeals and new marketers don't always have access to the big picture or an informed view of companies, products, or the MLM industry.

Again, you're encouraged to read all you can , both pro and con regarding the MLM industry. It is my feeling that the industry is healthy overall, the network marketing form of marketing is legal, and there are many good companies out there who need motivated people who want to make money.

Too often criticism concerning various companies, including MLM Companies, focus on the amount of money companies are making and the amount of money officers and top-level people are making as though that's a negative. In this author's humble opinion, it is very revealing that skeptics that publish various articles take exception to the fact that people are making money and living "lavish lifestyles" as though attaining financial success is something to be ashamed of.

I suspect that some of these so-called skeptics, or at least those who contribute articles to skeptic web sites, have an anti-capitalist philosophy. The last time I checked, freedom and attaining financial independence has been, is, and will always be the most important motivator for everyone in the world. The freedom we enjoy in the U.S. is in large part responsible for our country being the world leader we are in the world today. So my cautionary advice is to beware of critics who seem to be at odds with the idea and principals of capitalism. Capitalism is a good word. Socialism is not.

Here's a quick case in point. Most of us have heard of the Lasik Vision Institute. Where I live, a radio personality tried Lasik Surgery offered by a doctor associated with the Lasik Visison Institute. Both he and his wife were very happy with the results as are many others in this area.

Well, it just so happened that when I was researching material for this article, I read an article on abcactionnews.com in Tampa Florida. The article was listed as a footnote link on the Quack Watch Site. The reporter who wrote the article for abcactionnews managed to find someone in that area that didn't have great results form Lasik surgery and six people had eye infections.

The problem I had with the article is that the reporter wasn't content to criticize the results of the surgeries performed at one clinic nor did this reporter take the time to really check out results from all clinics or interview other patients or even come close to doing a well-researched piece that was statisically meaningful. No. The reporter had to launch into an attack of the Insitutes owner basically charging that he lived a lavish lifestyle. Give me a break. Here's a link to the entire article so you can read this for yourself. A quick excerpt illustrates the anti-money, anti-capitalism bias that is often found in mainstream media -

"With business booming, Musa has been spending his money, buying a Bentley and other luxury automobiles. He's also renovating a multi-million-dollar mansion -- prime property in Palm Beach County. Musa has a beautiful view of the ocean.

Meanwhile, Kathy Jasmin (the alleged victim of surgery) can barely see a thing, and she is certainly not making millions.

I know of quite a few people who have had excellent results from Lasik Surgery performed by doctors in the Atlanta area. If you're like me, it's clear that the reporter in the afore-mentioned article couldn't stick to critiquing surgery results in an objective manner. No this defender of free enterprise had to cast the owner of the company as a villian because he is successful and has money.

It all started innocently enough in that the Quack Watch site's article really focused on financial aspects of the company. However, the author couldn't manage to completely hide his apparent bias in the Quack Watch Article, as you can see in the following statement - "their promotional prices were set low to "lure" people into coming in for consultations."

Well, maybe low pricing was used to bring people in for consultations, I really don't know. Like me, you've probably heard that price sells. However, I am quite certain that the last time I heard the word "lure", it was not in connection with business but most likely on the Animal Planet Channel.

The abcnews article was listed in the footnotes area as a supporting reference for the Quack Watch piece. In fact, the title of the footnote piece was lurid and was listed as the number one link. This top most article link is entitled, Action News exposes Lasik Institute president's lavish lifestyle. ABC Action News, July 23, 2003. I guess you could say that I was "lured" into reading their lame and biased article.

This article skewered the owner for being successful financially, and attacked the company based on the complaints of a very few number of people from one clinic in just one state. The anti-capitalist bias of this so-called news piece is evident for all to see. The "reporter" was evidently compelled to assault the lifestyle of the Institute's owner? Perhaps skeptics and reporters have something in common - they don't seem to like successful business people or successful business.

It's clear for all to see that reporters in the mainstream media, more often than not, attempt to paint word portraits of business subjects using a brush that might be better used to paint Lennin's old domicle in old mother Russia.

Here's the bottom line. Nothing is perfect in life but the MLM Industry is legal and the majority of MLM Companies have basically good reputations, so perhaps the best way to use the skeptic sites is to research individual companies to make sure the company you are interested in is a good company with a good reputation.

It might be instructive to keep in mind that some of the skeptic sites and many of their cited "sources" appear to be at-best anti-capitalist, and at in the very least, guilty of lumping things together in a less than satisfactory manner. In other words, if you want to read the skeptics point of view, you may want to be slightly skeptical of the skeptics as well.

I could comment that MLM will benefit if their opportunities are conveyed realistically without inflating the ease of attaining success and make other comments that are appropriate to this theme, however that are plenty of people who are willing to offer their criticism of MLM and business in general.

Today, business is under assault in the mass media. Very few TV shows focus on the positives of business and the contributions that business people make to our society. This needs to change.

If anything deserves more scutiny, it's big government, corrupt politicians, and the mass media which seems to want to squelch free speech, commerce, and individual liberties. It has now become apparent that mass media has a clear and dangerous liberal bias which is clearly anti-business and anti-capitalism - this is not in the best interest of anyone nor it is in the best interest of our country. Self-serving to the last, big media along with big government are organizational entities that deserve a more critical focus that does small business.

I for one think the more important cause of freedom and liberty would be better served by skeptic and other watchdog organizations if they were to focus on the bias and corruption of mass media and encroaching BIG government rather than focusing on the small business owner, who in most instances, has managed to make money by providing legitimate and desired services to the best of his or her abilility in spite of the critics, excess taxes, punishing regulations and all the rest of it.

In general, we will all benefit if we take steps to support legitimate business and business people no matter how their business is classified (MLM or whatever). We will all benefit if we educate consumers about the positive role of business - especially small business, and the many contributions that business makes to our way of life, contributions to charity, and the many life enhancing achievments that businesses are constantly making available to consumers.

It's time to assert that business is good, Capitalism is a good thing and that most business people, including MLM Marketers are good people. The bottom line is that MLM has come into its own, and is here to stay.

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