PDA

View Full Version : How to Rebuff the MLM "Sales Pitch"



Emet
07-03-2010, 11:33 AM
Anyone who has ever been approached to join a multi-level marketing company, knows how persistent (and sometimes persuasive) these people can be.

Here's one good way:

I am a Certified Public Accountant and have done hundreds of tax returns for all types of businesses over the last 12 years. During that time, I have done many, many MLM business tax returns. Over that 12 years and hundreds of tax returns, how many of those MLM “opportunities” made money? Only one…and it wasn’t a lot. The best part is when they try and sell me the opportunity. No thanks, the people making the money are the ones who own the MLM companies
The perfect comeback to a MLM pitch is this. Tell them you are always willing to look at investment opportunities, but you treat all opportunities the same. What you require is three years of tax returns to verify the kind of income this business will generate. (If you were to buy a business, your banker would ask for the same thing before you were loaned money, so it is a perfectly reasonable request) Tell them if the tax returns prove they are making the kind of money that they claim, you will seriously look at the opportunity.

I have used this line many times, and no one has taken me up on it. I will stick with investing in real businesses and rental property thank you.

Now, they may tell you their tax returns don’t show the type of income because the opportunity is “tax efficient”. That means you lose money…..

Here's another (http://www.epinions.com/content_1108320388).

fastmoney
07-03-2010, 01:57 PM
Well that is hard to say.. Show me tax your returns is a negative way to answer.. Most people cannot do it..

I have been pitched pleanty of times in my life, I have always said the same variation of what I am going to tell you here.

Bob, I think that is a great opportunity you have there.. I can see the money in that.. Listen I am really tied up right now, but in about 6 months, come back to me, show me how you are doing, I bet by that time you will be doing real well.. As soon as I clear up this thing that I am working on, I will be happy to join you..

In my 20+ years of being pitched.. Not once has someone called me 6 months later.. NOT ONCE!

Sojustask
07-03-2010, 02:46 PM
Well that is hard to say.. Show me tax your returns is a negative way to answer.. Most people cannot do it..

I have been pitched pleanty of times in my life, I have always said the same variation of what I am going to tell you here.

Bob, I think that is a great opportunity you have there.. I can see the money in that.. Listen I am really tied up right now, but in about 6 months, come back to me, show me how you are doing, I bet by that time you will be doing real well.. As soon as I clear up this thing that I am working on, I will be happy to join you..

In my 20+ years of being pitched.. Not once has someone called me 6 months later.. NOT ONCE!

That's a great answer! I don't know of any that could even come close.

Live&Learn
07-06-2010, 08:45 PM
Well that is hard to say.. Show me tax your returns is a negative way to answer.. Most people cannot do it..

I have been pitched pleanty of times in my life, I have always said the same variation of what I am going to tell you here.

Bob, I think that is a great opportunity you have there.. I can see the money in that.. Listen I am really tied up right now, but in about 6 months, come back to me, show me how you are doing, I bet by that time you will be doing real well.. As soon as I clear up this thing that I am working on, I will be happy to join you..

In my 20+ years of being pitched.. Not once has someone called me 6 months later.. NOT ONCE!

Where were you when I needed this advice LAST year???

Your idea would have saved me months of internet rasslin' with Lenny. :RpS_lol:

iamwil
07-07-2010, 02:35 PM
Where were you when I needed this advice LAST year???

Your idea would have saved me months of internet rasslin' with Lenny. :RpS_lol:
#1...I'll gladly give anyone a call every six months and see when you are finished with your project and give you an update as to how I am doing with the business.

#2...Interesting CPA story...done thousands have you? You should talk to my CPA, he also is amazed when he completes my returns...

#3...and yes, if I were selling my business, I'd gladly show the revenues and the returns...as it would only increase the sales price...but to a prospect, no you'll not see my tax returns...especially not one that lied about his thousands of returns he's done for mlmers..

#4...easiest way to rebut a sales pitch...you could always say "No". That is what I do, it is actually quite simple. But for those that are persistent I ask them...With your company can I buy customers and affiliates to be placed in my organization to make it grow? No? Well will the company mail the clients I bring in a full color glossy catalog every month and a full color magazine every month to assist in creating a regular customer? No? Well than why should I join when that is what I have?... That usually works for me.

Seriously?
07-07-2010, 03:39 PM
#2...Interesting CPA story...done thousands have you? You should talk to my CPA, he also is amazed when he completes my returns...

Didn't say thousands, said hundreds.

iamwil
07-07-2010, 04:02 PM
Didn't say thousands, said hundreds. I would suggest you first be a CPA.

And then be truthful. How can you ask/expect someone else to be truthful with you if you aren't with them?

Emet
07-07-2010, 04:33 PM
Well, I read that statement from the CPA as saying that he had done "hundreds of tax returns for all types of businesses over the last 12 years. During that time, I have done many, many MLM business tax returns.Over that 12 years and hundreds of tax returns, how many of those MLM “opportunities” made money? Only one…and it wasn’t a lot."

So he didn't specify the exact number of MLM tax returns.

Of course, there is this:

I've never seen anyone make money in this type of business.
TaxAlmanac - Discussion:Mary Kay (http://www.taxalmanac.org/index.php/Discussion:Mary_Kay)

Now no one is claiming any final authority--just simply two accountants offering their experiences.

Then there's this:

A manager of H&R Block in northern Utah, told me that during his 25 years of doing over 12,000 tax returns a year between he and his group, they could not remember a single client who had reported a significant profit over any appreciable period of time in MLM! (One reported a sizable profit one year – but went bankrupt the next.)

Another accountant told me of a seminar company that trains tax preparers across the country. The topic of MLM’s often comes up in connection with "hobby losses," and the concensus is that it is extremely rare to see profits from MLM participation. And a tax software

developer, who dealt with thousands of tax preparers across the country, said he had asked about 100 of them if they had ever seen a profit reported from MLM participation. None had. This was out of a total of over a million tax returns.

To confirm this, I performed a telephone survey7 of the people who should know if profits actually occur from MLM participation—the persons who prepare taxes for the most concentrated population of MLM participants – Utahns. What I found confirmed what we have suspected for many years, but for which we had little objective proof— except in the case of a half dozen programs, like Nu Skin, Amway, and Melaleuca, for which we already had good data. A few TOPP’s are getting rich at the expense of a multitude of downline recruits, who invest in products to participate in the MLM program on the basis of misrepresentations regarding income potential. (See Table 1—and other reports cited in END NOTES.)

It was tricky to get tax preparers to give out the information I sought. Since it is considered unethical for tax professionals to divulge confidential tax information of their clients, I had to approach this survey very delicately. I began by sharing that I had learned from other tax professionals. I reassured them that I was not asking them to disclose information from specific clients, but simply wanted to know if their experience corresponded with what I had learned from others. Most of them had already observed the same thing – that almost no one was reporting profits on their taxes from participating in MLM. They could not recall anyone ever reporting a significant income from MLM (with the exception of Utah County, which will be explained later). Using this approach, only one Utah County tax accountant refused to cooperate.

Tax Professionals Tell the Truth on MLM (http://www.mlm-thetruth.com/tax_study.htm)

Now we'll sit back and wait for the response: Jon Taylor is an anti-MLM zealot who...

iamwil
07-08-2010, 02:00 PM
My response had nothing to do with the CPA's actual or reported results.

I believe the title and topic of the thread is "how to rebuff a sales pitch"

I was simply pointing out unless you are a CPA and have had those results it is ridiculous to use that as your rebuff.

And find it also quite sad that folks can't use the word "No"

fastmoney
07-08-2010, 02:59 PM
And find it also quite sad that folks can't use the word "No"

How do you tell your son, mother, cousin, NO.. It is unfortunate that mlmers go after family and friends first.. It is hard to tell your best friend of 25 years No, isn't it?..

And some dude at the book store pitching you, why be so curt? No reason to.. All you're going to get from the mlmer, is why? Don't you train your people in rebuttals? It is just not worth the time. The easy way is always the easy way.

Maybe for you iamwill, no is easy.. But for 90% of the population, it isn't..

Also I would like to add, you said you would call me after 6 months... well I would just tell you, man that is great you are doing so good.. Call me in another 6 months, as I am still really tied up here..

Chances are if you are one of the 99% of mlmers out there you will either not be in mlm or a different deal anyway..

But since it never happened, I guess the first one that gets there I will buy whatever starter package and that's it.. But it has never happened.. so I got the odds on my side.

iamwil
07-08-2010, 03:28 PM
How do you tell your son, mother, cousin, NO.. It is unfortunate that mlmers go after family and friends first.. It is hard to tell your best friend of 25 years No, isn't it?..

Also I would like to add, you said you would call me after 6 months... well I would just tell you, man that is great you are doing so good.. Call me in another 6 months, as I am still really tied up here. I have no issues telling family and friends no. But often tell them I have enough on my plate, and am not looking for an opportunity, but I'll be glad to try one of your products to help support your business venture. Why not, just like buying from the local kids lemonade stands...I'll give their product a try...for the kids and the adults for the ego boost...for the adults in whatever mlm also I'll tell them what I thought of the product, why I'll continue to buy or why I won't buy anymore.

I do find it interesting that so many folks are willing to give the real estate broker down the street 6% of their house sale but begrudge their friend or family member from earning a couple of bucks. People are funny that way.

Now whenever you PM me your info, I'll be giving you that call, you can say your busy and I'll give you a call again in 6 months...

Love calling folks' bluff....what are the odds?

fastmoney
07-08-2010, 03:44 PM
I do find it interesting that so many folks are willing to give the real estate broker down the street 6% of their house sale but begrudge their friend or family member from earning a couple of bucks. People are funny that way.

Now whenever you PM me your info, I'll be giving you that call, you can say your busy and I'll give you a call again in 6 months...

Love calling folks' bluff....what are the odds?


Bluff?? Did you pitch me? No.. Are you going to, NO...

1. Obviously you are a lifer in mlm.. 99% of people, aren't. That offer was not for you.I have never met a lifer (in one company). I have met plenty of mlm junkies..

2. I just told you I would not work it, so why would you sign me up?


For the ego boost?? By giving them false hope they can sway you? What you are talking about is pity sales, well I feel sorry for him, so I will buy some of his product.. That does not fly with me.. Sorry..

That may be OK for you, but I would never take advantage of my friends like that..

iamwil
07-08-2010, 03:50 PM
Bluff?? Did you pitch me? No.. Are you going to, NO...

1. Obviously you are a lifer in mlm.. 99% of people, aren't. That offer was not for you.I have never met a lifer (in one company). I have met plenty of mlm junkies..

2. I just told you I would not work it, so why would you sign me up?


For the ego boost?? By giving them false hope they can sway you? What you are talking about is pity sales, well I feel sorry for him, so I will buy some of his product.. That does not fly with me.. Sorry..

That may be OK for you, but I would never take advantage of my friends like that..Oh so now I take advantage of my friends by buying one of their products. I'm sitting down...go ahead explain how I take advantage by buying.

I'm not a lifer... I have been with the same one for the past ten years. It is my fourth company. First two, dismal failures, not them, me. Second one more results than most...this one I'm happy with.

So I would have called you 20 times by now...

fastmoney
07-08-2010, 04:37 PM
You give them false hope.. Are you playing a mind game? Of course you are.. You an mlmer...

So your not a lifer.. You're going to quit sometime soon? 10 years is about long enough..

Doc Bunkum
07-08-2010, 06:00 PM
I do find it interesting that so many folks are willing to give the real estate broker down the street 6% of their house sale but begrudge their friend or family member from earning a couple of bucks. People are funny that way.



You're comparing the sale of a house to the sale of a couple bottles of jungle juice? :RpS_confused:

For one thing, you don't have to give the real estate broker down the street 6% of the sale of your house.

You don't pay the sticker price on a new car in the showroom, do you? (Or do you?)

Everything is negotiable.

You always have the option of FSBO.

But what about that $30 bottle of jungle juice?

Suppose I offered you $20 for it.

Would you take it?

iamwil
07-09-2010, 07:25 AM
You're comparing the sale of a house to the sale of a couple bottles of jungle juice? :RpS_confused:

Suppose I offered you $20 for it.

Would you take it?Heck no the agents that sell the house make thousands on one sale.

And would I take $20 for a bottle, heck I often give it away in anticipation of continued sales....but only after some discussion to see if you qualify.

A Life Aloft
07-18-2010, 03:24 PM
And you wonder why people think so highly of MLMers with statements like that. lmao