In my 15 years of studying the multilevel marketing [MLM], network marketing industry. I have seen many different kinds of companies come and go.
In the case of companies that sell commonly available commodities like gold and silver, I have never seen one last long term.
Just to make sure I wasn’t exaggerating, I checked with a respected peer to see if he could think of any exception. His answer confirmed it …
On Jul 26, 2011, at 6:31 AM, Lou Abbott / MLM-theWholeTruth.com wrote:
To your considerable knowledge, has there EVER been a precious metals MLM that has succeeded for any length of time?
Do you have an article I can link to on that topic?
His reply was rapid and clear …
And for reasons that are irreparable. Gold bullion will always be a
commodity that has a set value and cannot be marked up (an ounce of
gold is worth an ounce of gold), and it will always be another form of
currency (like selling Susan B. Anthony silver dollars for $1.00).
Therefore, trying to network market such a product will always create
an illegal pyramid scheme.
There is a chapter in my book called “MLM Programs That Never Work,
But Won’t Go Away” that deals with gold and silver schemes, but I have
no stand alone article on the topic.
In the case of American Gold Reserve (AGR), a new MLM in “pre-enrollment” as of the date of this post and the example I use in the video to explain this important lesson that also applies to ANY MLM where the products have similar mark ups, I think AGR has created a company that is not an illegal pyramid scheme.
Even so, I think it can’t possibly succeed long term in our industry.
The video (in the upper right corner of this page) explains why. It’s a matter of simple arithmetic to understand.
I urge you to take the few minutes and learn the lesson.
Then, I would appreciate your comment below.