I have heard MLM distributors brag about the fact that their company is publically traded, little do they know, being publically traded is one of the worst things for an MLM distributor.
Below is a portion of an interview about Pre-Paid Legal.
Yes, they use a system just like Amway’s, which is one reason Wall Street hates the company. We agree that how it’s sold is a limitation, but not based on any elitist view of what’s appropriate. The first problem is that by selling to people you know, who sell to people they know, they don’t reach large parts of the population – namely higher income levels. The current system also isn’t adequately educating people on how to use the product and what a great value it is. The more people use and take advantage of the services, the longer they remain customers. We think there’s great untapped potential in promoting to a broader population base through advertising and more traditional marketing. They also should enhance customer-service efforts to connect more often with paying customers. The growth upside from doing both of these is tremendous – they win from dramatically increasing the customer base and from higher retention of the customers they already have. The founder, Harland Stonecipher, still runs the business.
Squeeze the Shorts: The Long Case for Pre-Paid Legal Services - SeekingAlpha
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