In the United States, we're in the middle of a cannabis revolution. Our nation is slowly waking up to the truth that cannabis, what was once dubiously considered a dangerous psychoactive substance, is not only safe but extremely versatile in its medical benefits. This has been reflected in the sales of legal cannabis products, which is expected to grow from $6.6 billion in 2016 to $24.1 billion in 2025.
Daria M. Brezinski Ph.D, a practicing psychologist and former marketing director for a multi-level marketing magazine, echoes these sentiments. “Many people don’t realize that multi-level marketing companies are successful because they help people satisfy a number of important human needs, including feeling significant, having connections, learning something new, and making a difference. I have heard people in network marketing say again and again, ‘I’m doing this because I’m meeting amazing people … making so many connections … and I feel so good about myself.’”
The difference between a MLM and a pyramid scheme can be blurry, both legally and practically. It’s never been legally defined in the US by a statute, but the FTC defines it as whether a consultant can make an income by selling to the public alone without having to recruit consultants underneath them. “Not all multilevel marketing plans are legitimate,” the FTC states in its literature on MLMs. “If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan. If the money you make is based on the number of people you recruit and your sales to them, it’s probably not. It could be a pyramid scheme. Pyramid schemes are illegal, and the vast majority of participants lose money.”
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The human body also produces cannabinoids, known as endocannabinoids, in a bodily system known as the endocannabinoid system (or ECS). The ECS promotes homeostasis by regulating a wide range of functions, including motor skills, mood, appetite, and sleep. As we age, our ECS produces fewer endocannabinoids; they may also decrease due to physical injury or disease. Replenishing depleted endocannabinoids with phytocannabinoids like CBD can help restore balance to the body.
For most MLMs, the product is really a mere diversion from the real profit-making dynamic. To anyone familiar with MLMs, the previous discussion (which focused so much on the fact that MLMs are "doomed by design" to reach market saturation and thus put the people who are legitimately trying to sell the product into a difficult situation) may seem to miss the point. The product or service may well be good, and it might oversaturate at some point, but let's get serious. The product is not the incentive to join an MLM. Otherwise people might have shown an interest in selling this particular product or service before in the real world. The product is the excuse to attempt to legitimate the real money-making engine. It's "the cover."
In his book, According to Kotler, Paul Kotler defined this subject as follows: "Multilevel marketing (also called network marketing), describes systems in which companies contract with individuals to sell a set of products door to door or office to office. It is called multilevel because a contractor can also invite others to work and earn money on their performance." The sales representative thus has incentives to enlarge the sales force and to earn added commissions on the sales of his or her recruits.
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Even when consultants wake up to the fact they’ve been hoodwinked, many don’t warn their friends to stay away. That’s because if you speak out against any of LuLaRoe’s rules or mishaps, the community could publicly shame and harass you for being negative. “I can’t believe you call yourself a Christian,” one retailer wrote to someone trying to sound the alarm. “Where is the Jesus in you? I have to block you due to your constant-gross-delusional-uneducated opinions of LLR.” If you reveal you are struggling to make sales, you might be told to stop playing the victim, that you’re not putting in enough effort, to be more enthusiastic, and, of course, to buy more inventory.
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