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Share your dilemmas and get honest opinions from other Mumsnetters.

To be confused about friend’s Maldives holiday

245 replies

Jacobijake · 02/11/2021 11:44

A friend of mine had a ‘proper’ job but also sells FM cosmetics on the side. I know this is an MLM and so I’ve muted all her posts and she doesn’t try to sell to me so it doesn’t bother me and I don’t think about it.

However she’s recently (last week) been to the Maldives on a work trip which looked amazing, she said she didn’t have to pay for it it came through her ‘side hustle’ Hmm I guess I’m just wondering if that’s true? I always thought MLMs were a complete con and no one made money etc but I’ve seen the holiday pics and it’s a 5* resort! Also pictured are loads of other sellers of her particular thing (FM cosmetics).

To be clear I have no intention of buying products/joining/ and I genuinely think all MLMs prey on the vulnerable.

OP posts:
MrsMcCluskeysCat · 07/11/2021 07:33

Hopefully one day FM will join the list of MLM's who publish inform disclosure and we will see in their own words how many people make a big fat £0.

MrsMcCluskeysCat · 07/11/2021 07:42

I'm a tax adviser and I've just remembered a tax return I did for someone last year. It was a young mum who had to complete a return as she received dividends from her husbands company, she rang me up saying she was now an ambassador for an MLM and did she need to declare the profits. I said yes you and got her to send me details of everything she had early and all the products she had bought. Across the year she made a loss of £3k. When I had originally spoken to her she thought she had made quite a sizeable profit and was actually worried about how much tax there would have to pay (as she was 'skint', which was surely a tell tale sign she wasn't making as much as she thought!).

I decided to stick the figures into a mini set of accounts for her so she could see exactly how much commission she had earned and what she had paid out for. I sent them to her and she rang me in disbelief claiming they couldn't be right. She had never actually sat down and really looked at whether the commission she was getting in was covering the products she was buying and just assumed she was making a profit because he up line was telling her how well she was doing! She told me she was going to leave the MLM straight away but I've not spoken to her since then so it will be interesting to see whether she has or not when I coke to do her tax return this year.

Siriisatwat · 07/11/2021 08:37

@NJF2021

Would you ever knock back car payments monthly if you got the chance?? 💗💗
Yes, if I could see that it wasn’t actually a good deal.

My dh could have a company car on a scheme, but after looking into it, it worked out far better in the long run for us to use 5k savings to buy and older and much smaller than the choice he was. given, car of our own outright.

Sometimes “perks” (and I use that term very loosely in terms of MLMs aren’t actually worth it financially.

Siriisatwat · 07/11/2021 08:38

(Sorry, punctuation all over the place due to a very wriggly baby).

Dochas121 · 07/11/2021 18:23

I just finished reading that blog posted before. Fascinating read. What’s so interesting is that the vocabulary and style of writing of the girls in her MLM group is nearly identical to what the MLM supporters on this thread have posted - if you don’t support it you’re jealous / a hater etc.

Puzzledandpissedoff · 07/11/2021 18:47

It seems to be a sort of groupthink thing, Dochas, and certainly a hallmark of MLM. For reasons which defeat me, a "team leader" will post loads of "Eeeeeeks", "Huns", "Smashing its" and so on, and everyone else immediately latches on to it

It's almost as if they're afraid to be the "odd one out", but whatever happened to originality of thought? Sad

EinsteinaGogo · 07/11/2021 19:57

@Puzzledandpissedoff and @Dochas121

Don't forget 'thank you for supporting my little business " etc.

Puzzledandpissedoff · 07/11/2021 19:59

Good point, Einstein Grin

YouokHun · 07/11/2021 21:51

@MrsMcCluskeysCat

I'm a tax adviser and I've just remembered a tax return I did for someone last year. It was a young mum who had to complete a return as she received dividends from her husbands company, she rang me up saying she was now an ambassador for an MLM and did she need to declare the profits. I said yes you and got her to send me details of everything she had early and all the products she had bought. Across the year she made a loss of £3k. When I had originally spoken to her she thought she had made quite a sizeable profit and was actually worried about how much tax there would have to pay (as she was 'skint', which was surely a tell tale sign she wasn't making as much as she thought!).

I decided to stick the figures into a mini set of accounts for her so she could see exactly how much commission she had earned and what she had paid out for. I sent them to her and she rang me in disbelief claiming they couldn't be right. She had never actually sat down and really looked at whether the commission she was getting in was covering the products she was buying and just assumed she was making a profit because he up line was telling her how well she was doing! She told me she was going to leave the MLM straight away but I've not spoken to her since then so it will be interesting to see whether she has or not when I coke to do her tax return this year.

Excellent post @MrsMcCluskeysCat. I run a website called mlmtruth.org and we are forever advising people that if they won’t simply walk away from MLM they need to at least keep a very close eye on what they are spending to get the profit they think they are making. It’s quite shocking how often people are dazzled by the faux empowerment and toxic positivity, all designed to distract people from critical thinking and 20 minutes with a calculator. MLM is an ‘industry” in which 99.6% of the total number of sign ups make no money at best - it’s a real scandal. Often they are cushioned from the reality by a partner’s job, or another source of money which stops them realising how much money they’re haemorrhaging. We’ve seen plenty of relationships blown apart by MLM because of the outcomes for household income (as well as the distancing that happens if a loved one is critical of the MLM).

There are of course those who make a great deal of money and they can be found in that top

BonesInTheOcean · 08/11/2021 17:52

@NJF2021

Your friend would have made it to the Maldives free of charge if she posted that, I was on the trip & FM covered everything, the only thing I had to do personally was boom a flight that suited me eh at cost £836 & within 24 hours FM paid £850 into mr bank account to cover it…. I have proof if all of you people that don’t believe need it! & as for you even questioning your pal……. She’s clearly made it huni & done so well that she made this trip….. maybe you should congratulate her rather than starting a thread in mums net in absolute disbelief that your friend could smash this…….. 💪🏻 Just saying!! 💪🏻💪🏻💪🏻
FM covered everything, the only thing I had to do personally was boom a flight that suited me eh at cost £836 & within 24 hours FM paid £850 into mr bank account to cover it….

Really, how does that work for their accounts department then? Surely if they have paid you more than you paid for the item??

UsedUpUsername · 08/11/2021 18:31

I wonder if the friend is still doing that MLM ….

Dizzy6700 · 09/11/2021 12:30

They have to qualify for the "free holiday". It usually consists of selling (i.e. buying yourself) a large quantity of products over a short window of time. Also signing up a number of new reps, who in turn have to purchase a large quantity of products. So in actual fact, you pay for the holiday via product purchases and other qualifying criteria. Even then, only certain aspects are free (like accommodation). In addition it's always a short stay like 2 or 3 days.

So in fact you buy £2000 of products over 3 months, get 5 others to buy a couple of grand of products, and they'll pay your accommodation and a drink on arrival for 2 days hahaha

Siriisatwat · 09/11/2021 12:34

@Dizzy6700

They have to qualify for the "free holiday". It usually consists of selling (i.e. buying yourself) a large quantity of products over a short window of time. Also signing up a number of new reps, who in turn have to purchase a large quantity of products. So in actual fact, you pay for the holiday via product purchases and other qualifying criteria. Even then, only certain aspects are free (like accommodation). In addition it's always a short stay like 2 or 3 days.

So in fact you buy £2000 of products over 3 months, get 5 others to buy a couple of grand of products, and they'll pay your accommodation and a drink on arrival for 2 days hahaha

Fuck me. Now that sounds like a load of hassle.

Easier to get a real job and save up for your own holiday, eh? Grin

Dizzy6700 · 09/11/2021 15:04

So technically they're correct, the MLM covered the cost of the holiday (i.e. brainwashing convention).. however the rep has paid quadruple that price in the form of personal volume, sales to themselves / stockpiling and recruiting in the months leading up to it.

Dizzy6700 · 09/11/2021 17:46

So I’ve found the rules and conditions that the reps have to meet in order to go on this FREE trip – (travel and accommodation only). There are a couple of different options – but in essence it’s as follows:

• Obtain 300 personal volume points each month for 6 months (April 2020 – September 2020) and maintain that volume every month. That’s £300 a month for 6 months = (£1800). Many reps will be buying the volume themselves or fiddling the system by using techniques like rank buying for each other, getting downlines to buy from them, illegal Facebook raffles, pressuring friends and family etc…
• Between April and September; Recruit 150 new people who each attain 200 volume points in their 1st 30 days = £30000!!!!!
• You cannot be active in any other MLM

*1PV = £1 approx

So based on NJF2021s example - £850 flight and let’s say the same for the room. That’s £1700 paid for by FM. In return NJF2021 must bring over 30k into FM world hahahahahahahahaha

Then there’s the sunken costs of those reps who tried their best, brought in loads more doe than usual, but sadly missed out by not maintaining their volume and their recruits – that money will go into the FM coffers.

So basically NJF2021 paid for her 3 day trip herself; as well as getting her 150 new recruits to contribute £200 each; as well as all the sunken costs from those who tried but missed out AND all the downlines helping their uplines to qualify.

You generate 30 thousand pounds and FM will throw you some scraps to the tune of 2k for a 3 day brainwashing event!!!

No fanks hahahaha

FM are quids in tho!

P.S. Correct me if I'm wrong JLM and NJF2021 - this is what I found on FMs comms from last year!

youvegottenminuteslynn · 09/11/2021 22:03

@Dizzy6700

So I’ve found the rules and conditions that the reps have to meet in order to go on this FREE trip – (travel and accommodation only). There are a couple of different options – but in essence it’s as follows:

• Obtain 300 personal volume points each month for 6 months (April 2020 – September 2020) and maintain that volume every month. That’s £300 a month for 6 months = (£1800). Many reps will be buying the volume themselves or fiddling the system by using techniques like rank buying for each other, getting downlines to buy from them, illegal Facebook raffles, pressuring friends and family etc…
• Between April and September; Recruit 150 new people who each attain 200 volume points in their 1st 30 days = £30000!!!!!
• You cannot be active in any other MLM

*1PV = £1 approx

So based on NJF2021s example - £850 flight and let’s say the same for the room. That’s £1700 paid for by FM. In return NJF2021 must bring over 30k into FM world hahahahahahahahaha

Then there’s the sunken costs of those reps who tried their best, brought in loads more doe than usual, but sadly missed out by not maintaining their volume and their recruits – that money will go into the FM coffers.

So basically NJF2021 paid for her 3 day trip herself; as well as getting her 150 new recruits to contribute £200 each; as well as all the sunken costs from those who tried but missed out AND all the downlines helping their uplines to qualify.

You generate 30 thousand pounds and FM will throw you some scraps to the tune of 2k for a 3 day brainwashing event!!!

No fanks hahahaha

FM are quids in tho!

P.S. Correct me if I'm wrong JLM and NJF2021 - this is what I found on FMs comms from last year!

👏👏👏👏👏👏👏👏
Siriisatwat · 09/11/2021 22:10

You generate 30 thousand pounds and FM will throw you some scraps to the tune of 2k for a 3 day brainwashing event!!!

Yikes.

The very definition of a mugs game.

dickiedavisthunderthighs · 10/11/2021 12:04

@Dizzy6700

So I’ve found the rules and conditions that the reps have to meet in order to go on this FREE trip – (travel and accommodation only). There are a couple of different options – but in essence it’s as follows:

• Obtain 300 personal volume points each month for 6 months (April 2020 – September 2020) and maintain that volume every month. That’s £300 a month for 6 months = (£1800). Many reps will be buying the volume themselves or fiddling the system by using techniques like rank buying for each other, getting downlines to buy from them, illegal Facebook raffles, pressuring friends and family etc…
• Between April and September; Recruit 150 new people who each attain 200 volume points in their 1st 30 days = £30000!!!!!
• You cannot be active in any other MLM

*1PV = £1 approx

So based on NJF2021s example - £850 flight and let’s say the same for the room. That’s £1700 paid for by FM. In return NJF2021 must bring over 30k into FM world hahahahahahahahaha

Then there’s the sunken costs of those reps who tried their best, brought in loads more doe than usual, but sadly missed out by not maintaining their volume and their recruits – that money will go into the FM coffers.

So basically NJF2021 paid for her 3 day trip herself; as well as getting her 150 new recruits to contribute £200 each; as well as all the sunken costs from those who tried but missed out AND all the downlines helping their uplines to qualify.

You generate 30 thousand pounds and FM will throw you some scraps to the tune of 2k for a 3 day brainwashing event!!!

No fanks hahahaha

FM are quids in tho!

P.S. Correct me if I'm wrong JLM and NJF2021 - this is what I found on FMs comms from last year!

WOW.

Also the thought of travelling 12-odd hours each way in Economy for 3 days of taking Insta-worthy photos and then travelling home again makes me want to cry.

SophieKaczynsky · 10/11/2021 12:38

12 hours? One of the MLM Huns I follow on FB said that the journey was 24 hours each way door to door.

Dizzy6700 · 10/11/2021 13:30

@SophieKaczynsky

12 hours? One of the MLM Huns I follow on FB said that the journey was 24 hours each way door to door.
Like what on Earth! How can they reconcile this in their heads!
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