Anti-MLM Zealots
Part V - Ruth Carter
By Leonard W. Clements (c) 2005
If you haven't been following this series you should really get the
back issues and study up on your opponent. Not your opponent who's
trying to enroll your prospect into their opportunity, but your
opponent who's trying hard to make sure no one ever enrolls anyone into
their opportunity!
For what ever reason, there are a number of
folks out there who are anti-MLM. In my experience, I've found most
have a negative opinion of this business because they've been told to.
Someone else they know, usually someone who has failed at it, formed
this negative opinion and they've chosen to adopt it as their own. And
when they gain the strength of mind to form their own opinion, based on
their own investigation, the negativity usually evaporates.
Then there are those more passionate Anti-MLM Zealots, like Robert
FitzPatrick (author of the books "False Profits" and "Pyramid Nation")
who at least try to go beyond just anecdotal evidence in making their
case against network marketing. I explained why he was wrong in the
last three issues. And then there's guys like Dean Van Druff (author of
the article "What's Wrong With Multilevel Marketing") who openly admit
they've performed virtually no investigation into the subject matter at
all. His was a "theoretical" analyses. In other words, he guessed at
it. I explained why he guessed wrong in the first segment of this
series. In a future segment I'll deconstruct the prolific anti-MLM
efforts of Dr. Jon Taylor. Dr. Jon's case is an odd one. He actually
claims he was "successful" in MLM, yet still claims none of you will be.
Behind The Smoke & Mirrors - Ruth Carter
So now we come to Ms. Ruth Carter. Ruth is a rare breed of Anti-MLM
Zealot in that she not only, God forbid, actually participated in MLM,
she was genuinely burned by it. As her story goes, which she's
chronicled in her book "Behind the Smoke & Mirrors," she joined
Amway back in 1982 after being invited to a few meetings. She recounts
her feelings of curious apprehension, and how she had wondered why the
speaker at one meeting was driving such a beat up old car when he was
supposed to be so successful? Why was he serving store bought cookies
and drinks in Styrofoam cups? Why was his wife, who was obviously home,
never present? Why was there such "ludicrous" passion and excitement
over a company that just sold some "basic household and personal care
items, and supplied name brand product through a catalog"? However, it
was not until about seven years later (of her 13 "core" years in the
business) that she finally "neglected to leave my brain at the door"
and started to look critically at her experience.
This followed
years of doing everything by the book: attending all the meetings (at
first a 600 mile round trip), spending thousands of dollars on all the
tapes and books she was told to purchase, attending all the major
functions, showing the plan, recruiting people, and selling some
products. Yet, she also describes her arduous financial struggles,
debilitating bouts of depression, and poor social life (one date was
"thoroughly appalled" after attending one meeting with her, and another
claimed he had just lost his marriage over his wife's Amway involvement
- Ruth doesn't elaborate, but I suspect that date didn't go well). Six
years into the business, with two children from a previous marriage,
her savings depleted, no regular job, and a new husband who had tried
in vain to get behind her Amway business, but who was now "questioning
everything" about it causing constant arguments, she decided to have
another child. Her husband wanted children, and she announced that she
wouldn't even consider having another child unless they were building
the business so she could be a stay-at-home mom. He agreed to "do
whatever it takes." She then became pregnant - and their business
"ground to a halt."
Several months later, Ruth's loyalty and
efforts finally attracted the attention of an upline Diamond who wanted
her to come to work in his office. Understand, in the Amway world, such
an offer is analogous to a real estate agent being asked to intern for
Donald Trump, or a Catholic priest being asked to work directly with
the Pope. Amway Diamonds are more than just edified by their downlines,
they're practically deified. However, this is when, as the story goes,
Ruth was exposed to the inner workings of an AMO, or "Amway
Motivational Organization" (better known as the "tapes & tools"
business). She alleges a lucid moment occurred when she discovered that
only 5% of the Diamond's income came from his downline overrides. The
rest came from tools and functions. She said she felt sick that she had
"helped him steal from his distributors." Actually, steeling would be
offering them motivational tools, taking their money, then not sending
motivational tools. Offering them, taking their money, then sending
them exactly what they willingly ordered would be the opposite of
stealing. But this is Ruth's story.
So, after seeing this
"evidence" that was "right in front of (her) nose" for so long, and
after visiting several anti-Amway web sites, she decided to turn
hostile witness - and launched her own web site. It's called
MLMSurvivor.com.
This is probably a good time to address a
common question I receive regarding this series: Why do I mention the
Anti-MLM Zealot's material by name? Doesn't that increase the exposure
to their work? Fair question. The answer is simple. I have no fear of
you being exposed to their side of the story. I firmly believe this
industry can stand up to any scrutiny. Only the side with the weakest
argument doesn't want you to compare both sides. Only the side that
bases their case on anecdotal, theoretical, sometimes even completely
fabricated arguments doesn't want you to be exposed to all the facts.
Like Ruth and her cohorts at MLMSurvivor.com, for example. We'll get to
her web site later.
But first, what about this book? It does seem
to paint a pretty compelling, dissuasive story against, well, at last
Amway (now operating under the name of Quixtar and their parent company
Alticor - however, her book was written in 1999 and she refers to them
as Amway throughout, therefore I will as well). Indeed, the subtitle of
her book is "Amway Motivational Organizations." At least 90% of the
material and discussions on her web site directly or indirectly pertain
to Amway. Robert FitzPatrick, who's testimonial consumes the entire
back cover of her book, congratulates her for her "courage" to put the
truth in print regarding the Amway business (an ironic accolade
considering "Ruth Carter" hides behind a pseudonym - that's not her
real name).
For the record, I also dislike the manner in which
some AMOs operate. I am within the much larger MLM camp that believes
you don't have to spend thousands of dollars on books, tapes, videos
and numerous meetings and functions. What is offered to distributors
should be sold at, or even below cost. This would allow more
distributors access to the material so the producer of the material
makes their money by the resulting increased sales activity. That way
the seller doesn't make money by simply selling the tools, they only
make money if the tools actually help the buyer make money.
Having said that, let's be clear about a few things. First, these
tools Ruth is referring to are not offered by Amway, but by Diamond
distributors (which she does acknowledge), and are not sold on a
multilevel basis (in fact, Amway has terminated Diamonds who tried to
do this). Amway corporate makes very clear these tools are totally
optional and have no barring on any qualification in the compensation
plan. Thousands of Amway reps are not involved in an AMO. Also, the
Diamond distributor she uses as a case study in her book did, in fact,
have gross income from Amway bonuses less than 5% of his total gross
income, but this Diamond also incurred $2.6 million in expenses while
operating his extensive tools and training business. His Amway income
was actually 30% of his total net income. While I agree it should
certainly be more, citing the 5% figure seems disingenuous. Also, Ruth
provides a breakdown of the suggested training event costs for a year
and it totals $1,040 - for forty-two events! That's about the same cost
as two Tony Robbins seminars. At an average of $24 per event, it's
actually not a bad deal - as long as you don't go to all of them!
Carter states that the training tapes are repetitive. "After
you've heard a dozen or so teaching tapes, you've pretty much heard all
the information they offer. So why subscribe to a Standing Order Tape
(SOT) and buy a tape per week?" Good question - so why did she? She
tries to make a case that the AMOs are cult-like in their use of
brainwashing tactics. She devotes 36 of her 157 pages to a discussion
of cults and "mind control". This explains her devotion for so many
years to both a financially and emotionally draining experience. This
also explains why, when told to spend thousands on motivational books,
tapes, videos, and meetings, she couldn't simply say, No thanks (a
perfectly valid option). This rationalizes her commitment to a program
that allegedly encourages the shunning of friends and family who are
unsupportive, and so severely damages such relationships. Yet, she
paradoxically claims there are "millions of distributors who have
walked away" from their Amway business. Millions. By Ruth's own
accounting (based on published data), 59% of all current Amway reps are
inactive (that is, somehow found the will power to stop). She refers to
"Prisoners of MLM" who have been psychologically manipulated into
continuing, in spite of the notoriously high attrition rate throughout
the MLM industry. Such statements seem to border on the absurd
considering the extreme level of ease so many others seem to have in
leaving their MLM program. In fact, it's often too easy! She describes
the many people whom she introduced the business to in much the same
way it was introduced to her who immediately rejected it (or even, as
described earlier, were "appalled" by their first introduction). What
did they see that she failed to see? She does candidly questions her
own "stupidity" in the beginning.
While it may seem easy to just dismiss her "I did it because they
told me to" explanation with the common Mom line "If they told you to
jump off a bridge, would you do it?" (my Mom used "bridge," yours
probably used the more common "cliff"). However, there are a very
disproportionate number of folks who get involved in these Amway
Motivational Organizations, lose a lot of money and friends, and just
can't seem to stop. I think the alleged use of mind control techniques
by these groups deserves consideration and should not be summarily
dismissed. Some people are more susceptible to these tactics than
others (a sign of emotional weakness and lack of common sense perhaps,
but certainly not intelligence), and in my opinion it does appear most
AMO leaders are playing to that demographic. But let's be clear: we are
talking about a faction within Amway's distributor ranks, not all
distributor groups within Amway. And we are not talking about Amway
corporate, who seem to be going out of their way to inform new reps of
the true average income potential of the opportunity, and that the
tools and training are completely optional, totally voluntary
purchases. In fact, about two years before Ruth wrote her book Amway
began requiring renewing reps to sign an agreement stating "I
understand that the purchase of Business Support Materials is always
optional." If they choose to purchase such collateral material, they
must sign an arbitration agreement. In their policies (which all reps
must agree to) they clearly state:
"If you sponsor others, you
have an obligation to train and motivate them whether or not they
choose to buy Business Support Material. All distributors are free to
change their volume of purchase of such items, to cancel standing
orders, or to cease such purchases at any time without threats,
pressure, or retaliation."
Ruth completely acknowledges all
this, and the provision that anyone who sells such tools must agree to
buy them back within 180 days, yet it appears to have made no
impression on her at all. She claims this provision is "completely
ignored by distributors in the field." Her evidence? Two e-mails she
received from "disillusioned" ex-distributors.
Ms. Carter also gratuitously, and clumsily, attempts to make a
case that Amway is now operating as a pyramid scheme. Like Robert
FitzPatrick, she believes a high percentage of personal consumption
among distributors is somehow indicative of an illegal pyramid
(according to the FTC, it's not, which was proven in the last
installment). But it's not so much what she's claiming as how. Here's
her statement, verbatim: "Virtually no product is sold at retail today
in North America - actual retail sales comprise only about 18% of all
Amway sales." According to Ruth, 18% = 0%.
She makes the sensationalistic claim later in her book that "As
financial and mental-health professionals become more familiar with the
devastation that follows in the wake of many MLM opportunities, they
are becoming better resources for helping people recover from AMO
involvement." Here in lies the crux of Carter's ignorant, illogical,
campaign against the entire MLM industry - she thinks the experiences
of a subset of AMO members, themselves a subset of the entire Amway
organization, which is a subset of the entire MLM industry, is
indicative of how all MLM programs operate. All this in spite of the
easily verifiable fact that such tools & training systems are
virtually exclusive to Amway. No other MLM company employs such
Motivational Organizations. Not a single one. And the "devastation" she
refers to that requires the care of a mental-health professional is
overly melodramatic and hyperbole even within Amway (certainly some
folks have been devastated, but they are a small, vocal minority who
file law suits and build web sites). I've known literally thousands of
networkers over the last 14 years and can't think of a single Oxyfresh,
New Vision, Freelife or Cell Tech distributors who ever needed
psychological counseling due to their experience. Every failed
distributor I've ever known just quit, moved on, and got over it.
Ruth Carter's book is not what classifies her as an "Anti-MLM
Zealot." Obviously, she was genuinely traumatized by her experience. If
writing a book and starting an on-line "survivor's" support group for
others with similar experiences is cathartic for her and others, more
power to her. I sincerely mean that. But her agenda is not so benign.
She has, once again it appears, been brainwashed into believing all MLM
opportunities are evil, vile, scum. Her experience in this one
organization within this one company was horrible, so they all must be
as horrible. She is now so blinded by her loathing for all things MLM
that she didn't create AmwaySurvivor.com, she launched MLMSurvivor.com.
This web site is where the real fun begins. Don't miss the next issue!
Click HERE for Part VI
Since 1989, Leonard
Clements has concentrated his full-time efforts on researching and analyzing
all aspects of Network Marketing. He is a professional speaker and trainer,
and currently conducts "Inside Network Marketing" seminars throughout the
world. Len is the author of the controversial book "Inside Network
Marketing" (Random House) and the best selling cassette tapes "Case Closed!
The Whole Truth About Network Marketing" and "The Coming Network Marketing
Boom." He is a court recognized expert in the field of network marketing.
To receive additional information about MarketWave and its products,
please call 1-800-688-4766, or write to MarketWave, Inc., 1572 Rock Island Lane,
Las Vegas, NV 89110, or visit
www.marketwaveinc.com. |
Latest
Alert
Featured Article
Comment to Author
Print
Version
Email to a Friend