My Online Presence is Rooted in “7 Lies”
My online “presence” (not counting my “PBET” train-the-trainer business web site) began as a result of reading an ebook about the 7 lies in network marketing during August of 2007. How did that happen?
In 1996, Ruth signed up with a wellness-related network marketing opportunity because she liked the products and because the “opportunity” sounded good. I wanted nothing to do with the products or multilevel marketing (MLM) companies; my previous MLM experience 25 years before had been a nightmare. But by 1999, Ruth had begun to make a nice part-time income and she had “converted” me to a strong belief in the nutritional value of the products; so I began to help her with her MLM business.
We struggled for eight years. The income and number of distributors grew a little and then began to drift downward. We had already gone through our “friends and family” list, and we had no desire to harass or pursue those who had said “no” to us. So we knew that we had to find new people to whom we could present the product and/or the opportunity. We tried using what others refer to as “the 3 foot rule” with some small results. We tried classified advertising, holding hotel meetings, and pushing our downline with no real results. We became frustrated.
That was when we got an email from our upline suggesting that we download “The 7 Great Lies of Network Marketing” and then purchase the “Renegade Network Marketer” both by Ann Sieg.
Unaware of a growing buzz and controversy surrounding the 7 lies ebook, one month later, I began work on my first blog.
Lies! - And How the MLM World Responded

Ann Sieg
I had no idea who Ann Sieg was in 2007; my upline suggested the book and I got it. However, the content of The 7 Great Lies of Network Marketing resonated with me. The primary message of the book is that network marketing is about 3 critical things: 1) marketing, 2) marketing, and 3) marketing.
Meanwhile most network marketing companies and leading distributors cover up and/or dilute this fact with, as Sieg states, “a horrible mess of hype, hot air, misconceptions, falsehoods, delusions, distortions, myths and downright lies that get passed along to one sponsor to the next.”
To get people’s attention, Ann Sieg selected the single most controversial word out of that “mess” to use in her book title: lies.
The reaction was incredible. Many, like myself, identified with the book and saw value in the content. Others did not understand the book’s purpose, mischaracterized it (created a “straw man”), and attacked it. Some of those people became so angry with her book that they tried to prevent its distribution! In a subsequent book (The Renegade Network Marketer) Sieg supplies sample letters from these angry and defensive people, like this one:
You are so full of s***! Network marketing isn’t about selling, it’s about finding people who have dreams of wanting more for their lives. There is no problem with network marketing, you’re the problem. You are the Queen of scum! I pity the people that fall for your garbage and pray you stop doing what you’re doing before it’s too late!
Mike Klingler reports what happened when he began telling his MLM downline about Ann Sieg. He says that he received an email from a prominent distributor in his MLM company who was enraged by The 7 Great Lies.
I spent several hours today engaged in an eye-opening email exchange with one of the ‘frightened uplines’ who is in the $50,000+ per month range (or was). I don’t think he works much anymore, but he does do an occasional ‘training’ where he gets pretty worked up… teaching why we should ‘make’ people buy our products even if they don’t want to because they need it (he really teaches this… I was at his training last summer).
His argument is that Ann Sieg focuses too much on the negatives of the ‘old school’ model when she’s sharing how people can Attract Prospects to Them instead.
Now I have known this wealthy upline for quite a long time. I attended his ‘trainings’ and purchased many of his CDs and tapes over the course of 12 years… teaching the old model of ‘chase ‘em down’ marketing.
What I find interesting about his argument is that he, more than anyone I personally know, used a similar “negative-marketing” stragegy to motivate us to buy his stuff, and to sell our company’s products.
[His hostility and that of others like him] highlights the painful reality some uplines are experiencing as they watch times change. Their position as the ‘guru’ is slipping away. -Mike Klingler in a HubPages article.
So why did we (Richard and Ruth) identify with these seven lies (myths, misconceptions… whatever name you like)? Because most of the “lies” she talks about were in fact the root causes to our own frustration and stagnation.
Types of Lies
There are deliberate lies and systemic lies. A person that deliberately lies knows what he is doing. He is fully conscious of his use of a lie to motivate or manipulate.
A systemic lie is told by a person that, for the most part, does not know that what he is saying is false. It is difficult to blame him because he is not conscious of doing anything wrong. Quite often the individual telling a systemic lie not only believes that the false idea is true, he also has a huge emotional investment in his belief.

Yes! We believe it! Why? Because we all do!
All of us are involved in various social systems; these include everything from sports fan groups to religious groups, neighborhoods to racial groups, occupations and occupational rankings (laborer – supervisor – CEO and more) to nations. All of these groups are prone to accept certain theories, beliefs, and stories – not all of which are true.
“Urban myths” are one example demonstrating the widespread and easy acceptance of false beliefs, ie., systemic lies. When a false belief hurts others, it is appropriate to confront the believers with information that brings out the truth. False beliefs are ultimately damaging and self-destructive to individuals and institutions. Often, a person simply believes anything when it has been repeated enough by people in their social group.
Racism, ageism, sexism, and all other forms of discrimination thrive on false beliefs that are repeated for years as though the beliefs were true. Correcting the many false beliefs on which such discrimination rests is the right thing to do.
Individuals who are shown evidence that refutes certain of their ideas which, because of reinforcement by their social group, they strongly believe to be true, may react in a variety of ways. Some may ask questions in order to seek the truth. Others, more typically, may react defensively including denial, louder repetition of the challenged belief, and angry aggressive words and actions.
Some people defend telling deliberate “white” lies (”Santa Claus will bring you some presents”). But most agree that telling a deliberate lie that hurts others is wrong.
Likewise, systemic lies that hurt others are wrong. Continuing to tell (repeat, teach, preach, broadcast) a systemic lie after having been presented with evidence that contradicts the belief is also wrong. Instead, it is right to research and question until a healthy and balanced “truth” is found.
Network marketers make up a social system and top ranking MLM distributors are a sub group of that social system. Over the years, a large body of beliefs has developed about the best way(s) to perform the tasks of an MLM distributor. These beliefs have been reinforced as individuals have moved from one company to another, sharing ideas, recommending books and tapes, and often listening to the same speakers.
Among these beliefs have been some theories as to why so very few people (3%) are successful – that is, make a profit, and why only a tiny fraction of those people go on to attain a full time income living on residuals. Typically these theories create guilt and shame for the unsuccessful. These are the theories, among others in network marketing, that Sieg is challenging in her book The 7 Great Lies of Network Marketing.
Was the Word “Lies” a Poor Choice?
It is hard to get rid of systemic lies. Many such lies are strongly (and blindly) defended because they are pillars to some political, religious, nationalist, or racial agenda. Other systemic lies are blindly defended because the truth hits too close to one’s wallet. All too often a false idea is defended simply because the defender does not want to be seen as “wrong.”
So what does it take to get people to reconsider a whole set of beliefs?
For starters, you have to get people’s attention. In his book Artful Persuasion: How to Command Attention, Change Minds, and Influence People, Harry Mills (2000) says:
Because they are more concrete, personal, and image-provoking, vivid messages grab our attention; because vivid messages are more memorable, they linger longer for later recall.
Clearly the word “lies” –not to mention 7 lies of network marketing– has gotten people’s attention! Having done that, she mutes the force of the word, inside the book, by saying if not lies, then at least “hype, hot air, misconceptions, falsehoods, delusions, distortions, [or] myths.” As I said, with systemic lies, it is hard to blame anyone, and The 7 Great Lies of Network Marketing is not about blame. As Sieg states, “In this industry, we have a genuine case of the blind leading the blind.”
So what is the real purpose of the book? It is to explain (give reasons) why common network marketing beliefs are actually false. In her more colorful language:
So my purpose in writing this book is to help you “deprogram” some of the nonsense and misconceptions that pollute this industry. This is the crucial first step towards becoming a highly-effective, well-paid, professional network marketer.
Then, once you have a clean slate to start with, you can begin learning how to really make this business work.
In other words, this book is not a “how to do network marketing” book. (If you want to know what “methods” Sieg advocates, you will need to read either or both of her two subsequent books: The Renegade Network Marketer and The Attraction Marketer’s Manifesto.)
Attacks on The 7 Great Lies - and My Reaction
I have read reviews of Sieg’s The 7 Great Lies that claim she advocates the use of malicious online advertising campaigns as the new way to market. It does no such thing. It does not advocate any type of “how to” at all! This is not the purpose of the book (see above). It is incredible that people write reviews when clearly they have not read it.
If there is any advocacy in The 7 Great Lies at all, it is to learn that the key to network marketing – is marketing.
Some people are upset with Sieg, believing that her ebook puts a negative spotlight on the network marketing industry; they say she is damaging the reputation of network marketing. But is that true? Consider this: Research conducted by Leaders Club has shown a fairly consistent network marketer failure rate of 97% (drop out having made no profit). From that fact, I conclude,
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The Fact Does More Damage Than Ann Sieg's Book
When network marketing companies and uplines say that “anyone can do this” and 97% fail at it, it is at least disingenuous, if not systemic lying. “Anyone can do this” is one of the “lies” that Sieg includes in her seven.
- Insisting that people “duplicate” something that is not working for the large majority is foolish. As we all know, “If you keep doing what you have always done, you will keep getting what you have always got.” In this case, a 97% failure rate.
- The 97 people out of 100 that drop out of network marketing with no profit are themselves the ones who damage the reputation of the network marketing industry. Even if only half that number actually tell other people something negative about their experience, the result is an army of naysayers, an avalanche of damaging discontent. It is hard for me to believe that one little book can do any worse than what has already been done.
So, I do not accept the argument that Ann Sieg’s book has damaged the industry’s reputation. If anything, the fresh look has helped improve the industry’s reputation. In subsequent posts, I plan to discuss several of Sieg’s “lies” in greater detail and give my take on them.
Ann Sieg’s 7 Great Lies of Network Marketing – Still a Force
Three years after it was issued, The 7 Great Lies of Network Marketing continues to be downloaded and read by many people every day. It continues to hit home or ring true with many people, and it continues to irritate some who do not like Sieg’s writing style.
She uses colorful language and stories along with hyperbole to get the reader’s attention. Some find this “passionate” – others take a dim view of it.
She is certainly not the first to write about these issues. For example, Mike Dillard’s Magnetic Sponsoring predates Sieg’s book. But she is the first to thoroughly organize the reasons why traditional network marketing methods are problematic and to present them in such a colorful way.
If you are a home business owner and you are looking for home business information for network marketers, understanding the 7 lies of network marketing is important. Obviously it is not the whole story. For that, one needs to know more about Ann Sieg and her other writings.
Part 2 of this series will look at the person behind the book, Ann Sieg.
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