From: paradis@sousa.ltn.dec.com (Jim Paradis)
Newsgroups: alt.business.multi-level
Subject: Re: Selective Disclosure (was Re:  LOOKING FOR GOOD MLMs (?) )
Date: 13 Oct 92 17:15:49 GMT
Reply-To: paradis@sousa.ltn.dec.com (Jim Paradis)
Organization: Digital Equipment Corporation



I've been largely a lurker in the MLM debates.  I watch them with keen
interest because I'm interested in starting my own business.  However,
you might call me an "MLM skeptic".  I don't dismiss them out of hand
as some folks do, but I'm not completely sold on the idea either.

Anyhow: Jon's article prompted a few thoughts:

>1.  Because I've looked closely at this business, I see that it is a great
>    business, and if others see it as I see it, then they may want to get
>    involved also - if they see that it would meet some need in their life.

As you said, Jon: an "MLM believer" will believe that s/he has looked
closely at the business and found it outstanding.  An "MLM naysayer"
will argue that the believer has been supplied with misinformation.
I think the truth lies somewhere in between these two extremes.  The
question is: where can information about any particular MLM be found?
Plenty is to be had from the promoters of the MLM itself, but like any
sales information, it's bound to be biased.  There's plenty of horror
stories to be told by the naysayers, but they too may have axes to grind.
There is *some* truth in all MLM stories (e.g. Amway probably *is* a
$30B company, and there are some organizations that probably *do* practice
deceptive sales practices), but where can a prospect go for some relatively
unbiased information?

[I know, I know, there's at least one fellow out there who's producing
an "MLM newsletter", but how do I know there are no conflicts of interest
*there*?  I occasionally receive investment sales pitches that are dressed
up to look like magazines... but strangely enough at least half the articles
speak favorably about the XYZ Fund...]

>2.  But, if I drop the name of the MLM too early, before giving them specific
>    information, then there's a good chance that the "steel door" principle
>    will take effect and I will not be able to share with them my information -
>    and they will make this negative decision before getting all the facts.
>
>3.  Thus, I must give them information about the business, but without giving
>    them some name upfront that will give them an emotional, rather than a
>    factual basis for making a decision. 

Well, Jon, what about the fact that *not* giving the name or nature of 
the business can activate some steel doors of its own?  That it sure
does in my case!  Whenever I hear someone talk about an "incredible
opportunity", and talk on and on about how "this is an important business
that services vital needs" and how "advancement potential is unlimited",
without *once* mentioning *either* the name of the business *OR* the
nature of the work involved, I immediately get suspcious.

I think that's the real complaint here... it's not that you omit the *name*
of the business, but that you seem to obscure *ALL* concrete details about
the nature of the business.  If you don't want to call it Amway, fine.
But when you make your pitch, at *least* say something about what I'm going
to be doing to earn my money!  e.g. "You know, there's a lot of opportunity
in the home products business.  I know of one relatively painless way to
break into this market.  Here it is..."

>Now, for point three above, those who support MLM would call the curiousity
>approach a process of selective disclosure;  opponents would call it deception.
>But is it deception?  For those of us who hold the facts we do about this
>business, the answer is no.  In fact, many, including myself, would justify
>this with the statement that telling them the name before the facts would
>actually be misleading them since they may come to, what we believe to be,
>incorrect conclusions about the business.

Well, nature abhors a vacuum.  If you present a prospect with an information
vacuum, s/he is going to fill in the details... and quite possibly get the
wrong message... either one of "Ah, it's only a scam... and since he's telling
me nothing about it, must have something to hide!" -OR- "Gee!  Here's my
opportunity to Get Rich Quick!!  Sign me up!!!!".

If I were to build an MLM organization, I'd likely do it in such a way that
*everyone* I signed up knew *exactly* what was going on.

Like I said, Jon, I'm a skeptic, not a naysayer.  I'm not flaming MLM's
here... just one approach to them.  But tell me: how much lattitude does
Amway give its distributors in their sales approach?  F'rinstance, if I
were to start an organization and were to start my sales pitch with, "HI,
would you like to join Amway?", would Amway let me do this?  [I know you
think it's not the most *effective* way to show the plan, but would Amway
let me do it this way if I wanted?]

--
Jim Paradis (paradis@tallis.enet.dec.com) 
Working for DEC, speaking for myself.