How MLMs Use the Psychology of Influence

Multi-Level Marketing (MLM) is a very popular business method. It relies on “distributors” who use the power of influence to purchase the products—and ultimately, to sign up as a distributor in their downline.

MLM companies continue to grow in popularity. The products and services they provide are endless: cosmetics, essential oils, weight loss shakes, health foods, kitchen gadgets, jewelry, wine, and more Most MLMs are in the Health & Wellness Industry; you can find a comprehensive list of all health-related MLM companies here.

Unfortunately, the Direct Sales and MLM business model is very troubling, because it causes tremendous financial, mental, emotional, and social damage (see my previous posts).

Today, I’m going to give examples of how Direct Sales and Multi-Level Marketing companies use the 6 Principles of Persuasionand a Devil’s Advocate perspective to make sure you recognize and avoid predatory tactics.

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The MLM Persuasion Tricks That Convinced Me to Join

How do Multi-Level Marketing (MLM) and Direct Sales companies persuade so many people to join?

I will explain which 6 Principles of Persuasion were used to lure me into signing up… twice! …and what you can do to recognize the signs of a predatory company.

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What’s in a Name? Why Business Owners Have the Gift of Choice

We dont get to choose our first name, at least not for the first 18 years of life. It’s something our parents pick; their first gift to us, so to speak.

While we do have the option to change it once we reach adulthood, most of us stick with our given name for life.

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What Does it Take to Develop a Triple Niche?

When you pick a narrow business focus, it can make a world of difference.

There are many ways to niche a healthcare practice, but I believe the best way is by isolating at least three areas in which to specialize.

Keep reading to find out what they are.

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Analysis of the Disclaimer from a Direct Sales Company

Direct Sales companies, also known as Multi-Level Marketing (MLM) and Network Marketing, are growing exponentially. (Check out a list with hundreds of MLMs around the world.)

But despite their popularity and far-reaching impact, the MLM business model is often predatory, unethical, and at times illegal.

In this post, I want to evaluate the Disclaimer of one MLM company to shed some light on how this model works, how these organizations view risk, and why you should proceed with caution.

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Examples of the Sneaky Promises MLMs Use to Attract New Reps

Multi-Level Marketing (MLM) and direct marketing are very popular. The rate of growth of direct sales companies is staggering, especially in the healthcare industry.

Unfortunately, the MLM business model is predatory and takes advantage of people who are in vulnerable situations. Health and Wellness products sold by MLM companies are often unregulated, overpriced, and exaggerate the results.

In this post, you will see why MLM companies take advantage of our basic human needs, and actual statements they use to influence unsuspecting people into signing up.

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Which Titles to Use if You’re an MLM or Direct Sales Rep

We use job titles to communicate our knowledge and expertise.

A job title conveys who we are, what we do, and how we do it… summed up in a few words.

I have noticed a trend in the MLM and Direct Sales community, where reps portray themselves using inaccurate or even deceptive titles. This can be especially destructive in the healthcare industry, because unsuspecting patients are tricked into believing the MLM rep is a qualified healthcare provider.

Sure, it can be fun to design an attention-grabbing title that sets you apart from the crowd (I use the title Strategic Risk Expert); but when it goes too far, your potential customers may be confused at best… and be harmed at worst.

When MLM reps use deceptive titles to diagnose, recommend, or provide medical care, it can result in broken trust, lawsuits, damage… and even death.

In this post, you’ll read a list of titles that are Accurate, Ambiguous, terms that Misrepresent, and some are just plain Ridiculous for MLM reps to use.

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199 (Potentially Dangerous) Titles Used by MLM and Direct Sales Reps

Multi-Level Marketing (MLM) products are everywhere. They are particularly common in the healthcare industry.

While some products may provide some relief when used properly, I believe the biggest problem created by the MLM industry is their blatant misuse and disregard for job titles.

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11 Ways Multi-Level Marketing is Like a Cult

We have the power to exert tremendous influence on others.

Sometimes, people use this power to take advantage of those who are vulnerable by exerting tremendous control on their choices and behavior.

Today I want to share some insights about why Multi-Level Marketing companies operate exactly like a cult and how to build risk intelligence to keep yourself safe.

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