The Good, Bad and Ugly of Multi-Level Network Marketing A lot has been written attacking and defending what is known as "MLM," or multi-level marketing, sometimes derisively called "pyramid schemes." However, prior to , many journalists, investors and analysts really didn't understand the business in detail enough to be able to comment on it fairly. Network marketing is a business model that depends on person-to-person sales by independent representatives, often working from home.
Stemtech is a multilevel marketing company that claims to use the power of stem how to change battery in nissan smart key to make a wide variety wbat nutritional supplements and products. That cell phone filter is called D-FUZE and consists of a small sticker you place on the back of your cell phone. Stemtech currently has all of the following products on the market.
The cell phone filter we mentioned above is the only member of the Eco Products lineup, while all other Stemtech supplements are part of the Stem Cell Nutrition lineup. D-FUZE promises to protect your body from the dangerous effects of cell phones. This technology purportedly blocks EMFs and directs them away from your body. D-FUZE comes in the form of a small thin disc.
You stick the disc onto the back of a cell phone, then use your cell phone as normal. Most research shows that the effects of cell phone radiation are minimal, if not mwrketing.
However, some studies have shown there may be minor health effects. It includes ingredients like astragalus, cordyceps, curcumin, and aloe to purportedly maintain and repair cell tissues in your body. Some of the claimed benefits of the supplements include the ability to promote youthful, healthy aging and an overall sense of wellbeing. StemFlo is a supplement what is network marketing vt claims to support healthy circulation and blood flow, helping you reduce stiffness and target oxidative stress throughout the body.
The supplement works using, once whag, a proprietary formula in which no dosages are disclosed. ST-5 with MigraStem claims to infuse your tissues with enhanced stem cells and nutrients. It also delivers 10 grams of fiber per serving. You add one scoop of the formula to a beverage of your choice, then drink it to support your overall health. The formula contains a protein blend It claims to boost mental clarity and help your body recover faster at the cellular level. Stemtech does cite another study where their formula led to an increase in stem cell activity.
However, that study was performed in vitro — which means it was performed on microorganisms instead of on the human body. You can read more about that study here. You place two pumps of the formula on your skin, then apply it netsork smooth it around your face.
StemPets claims to be a natural stem cell enhancer for dogs and other household pets. It claims to use stem cell-boosting ingredients to ease joint pain in your dogs or cats. Dosage varies based on the size of your pet. Dogs what is network marketing vt cats under 15 pounds take half a tablet, for example, while those above 60 pounds take 2 tablets.
StemEquine promises similar benefits to StemPets, but catered specifically to how do you stop retaining water. It promises to boost the number of circulating adult stem vf in your horse by 3 to 4 million. Pricing looks like this:. Stemtech, like most direct marketing and multilevel marketing companies, does not sell its products in stores.
Instead, it sells directly to consumers through a network of sales distributors. The company promises many of the same things as other MLMs, including increased freedom and the opportunity to earn residual income while working from home. You can view more about the Stemtech opportunity here. Stemtech maintains its international headquarters in Florida and has European headquarters in France. The company is based at the following Florida address:.
The company has switched names a number of times in the past and it even changed its headquarters. It appears to have been around — in various forms — since around the ndtwork You can view the complete management team here.
Stemtech appears to be backed by more research than other multilevel marketing companies in the nutritional supplement niche. Nevertheless, Stemtech is a relatively large international company with an active presence in dozens of countries around the world. Posts Likes Following About Archive. What is Stemtech? Stemtech Products Stemtech currently has all of the following products on the market.
About Stemtech Stemtech maintains its international headquarters in Florida and has European headquarters in France. The company is based at the ahat Florida address: NW th Avenue Pembroke Pines, FL You can contact the company by phone at or by email at info stemtech.
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All businesses must produce income to survive. This is done primarily with internal sales and marketing departments. Since the s, many firms have tried to use direct selling i. Products such as autos, furniture, musical instruments and even cosmetics have been sold directly. Included in the cost of selling for many of these firms was the expense of replacing at least some of their sales force annually, based on their effectiveness or lack thereof. The percentage of this replacement varied by firm.
In the middle of the 20th century, the MLM method started to take root. MLM took the cost of recruiting and training replacement salespeople and made it a responsibility of the sales department itself.
This new autonomy granted sales departments authority to grow their sales forces almost infinitely. What had been an expense previously could now be turned into a profit center, if each salesperson could effectively recruit and train their own subordinate salespeople, creating multiple tiers of a new sales force.
This in turn could generate new profits for the parent company. In the s, companies employing MLM produced better returns than traditional brand companies employing a single tier of direct selling; both types of companies faced the same economy and social changes, but the ones featuring multiple tiers of their sales forces fared better.
This is whereby they can earn rewards by getting their own recruits take on enough of the product themselves. This is in addition to their own buying of products for demonstration purposes. Therefore, two separate revenue streams for the parent company are created from the use of recruits — one from internally used products and the second from products that ultimately wind up in the hands of consumers when the subordinate tier of salespeople sell them.
This latter case is also known as consumer demand. It is this disconnection from reported consumer demand that gets companies into trouble. Therefore, direct sales companies that wish to wear the cloak of legitimacy must separate the two product audiences and establish and verify consumer demand independently of their sales forces. Another aspect to consider is that in traditional direct sales organizations, the selection of new sales recruits was done thoughtfully and carefully, due to the real costs incurred.
Success could be measured when sales to consumers happened. In most MLM companies, however, even unproductive salespeople can still result in income for the parent company, despite a total lack of selection in their sales force. In these salespeople-heavy organizations, internal sales numbers can actually start to become significant.
Unsurprisingly, many MLM companies report a great number of new salespeople becoming inactive and reporting no significant sales to consumers, inevitably halting purchases of products for themselves. This in turn can make sales force turnover and attraction of new recruits a top priority for an organization. And this is generally where the MLM model turns into a pyramid scheme.
The MLM model ends up turning the selling role upside-down. Traditional selling regards the process as difficult work, requiring particular skill sets and personalities. With MLM, however, recruitment inevitably results in sales, and this holds true regardless of the quality of the product. Many MLM companies prominently feature examples of salespeople with absolutely no sales experience. The bottom line becomes simply recruitment as a path to success, leading to the danger that an MLM company will resort to fraud and misrepresentation to sustain the pyramid scheme that is necessary for its prosperity.
Both legitimate investors and swindlers are equally attracted to MLM companies due to their income potential.
Avon, a company that sells directly but never followed through with an MLM approach it toyed with in the s, regularly reports in the range of 60 percent margins. Because recruits are both buyers and sellers of the products, product prices need to facilitate the recruitment process. The combined gross margins tend to attract inordinate attention, including that of regulators. In finding the firm to be a pyramid scheme rather than a mere MLM-based company, the BurnLounge court noted a lack of consumer demand.
This led regulators to re-examine the process of direct sales to consumers. Regulators need to look at margin employed to compensate for the recruitment process and its associated purchases in conjunction with the churning of recruits as red flags.
In these cases, the viability and economic purpose of such a company both need to be examined closely. But the time is ripe for regulators to make clear new rules for the MLM industry.
The MLM Origins In the s, companies employing MLM produced better returns than traditional brand companies employing a single tier of direct selling; both types of companies faced the same economy and social changes, but the ones featuring multiple tiers of their sales forces fared better.