The DSA is the code of ethics guardian for the multilevel marketing industry.  Their mission is to protect consumers and sales associates from devious practices.  A company must comply with the code in order to maintain its membership.  The code addresses things like misleading information to get associates to sign up, inventory loading, i.e. encouraging an associate to purchase more inventory than they could sell in a reasonable time frame, and making false claims to consumers about products.

What seems to have really gotten to these people is the  free e-book,"7 Great Lies of Network Marketing".   It has really struck a chord with people in the industry.  They feel that this use of "negative marketing" breaks the DSA's code.

I have written before that just because someone is still using "Old School" mlm marketing practices doesn't mean they are intentionally misleading new recruits.  My experience has been that these are people who believe in the system and their products.  They are passing along to their downline what has worked for them, or what they believe will work for their new associates.  I think they are sincere when they say that if someone else is not getting results, it's because they aren't trying hard enough.But the fact remains that only 5% actually succeed using the old methods. 

Along comes "The 7 Great Lies of Network Marketing."  I can see how that title could be offensive to people in the industry.  But it is only a title, albeit a powerful one.  It actually could be a little lesson in itself on marketing techniques.  Ann Sieg is targeting a specific group with this e-book; those who are frustrated that their mlm businesses are not turning out to be all they had hoped.  These people are out on the internet looking for answers.  A good marketer knows that to catch the interest of this target market, you have to address their  perception of the problem - and the perception of many of these people is that they have been duped. When they see a title like "The 7 Great Lies of Network Marketing" they are attracted to it and want to read it if for nothing else than out of curiosity.  If the title was bland, like the 7 Great Misconceptions, or the 7 Great Exaggerations, it wouldn't have gotten anywhere near the response.

Title aside, what's really significant is the reaction when people read the book.  Just yesterday I spoke with a client who said it was as if Ann Sieg had gotten into his head and written about the exact problems he was having with his business.  That was my reaction to the book, as well.  I was a little bit bothered by the title, but when I read the actual material, it was right on the money (no pun intended!).

So, we have the two sides of the controversy. Uplines who believe in their methods and feel threatened by what they see as an attack on their business practices on one side.  Business owners who are frustrated by the old ways and looking to the future of network marketing using the new model of Attraction Marketing on the other side.

The issue is whether or not this gives the MLM powerhouses the right to tell us what we can and cannot promote.  One of the big selling points of joining a multilevel company is that you will become an independent business owner.  They can't have it both ways.  I understand the policy most companies have that their associates cannot discuss or name products on their personal sites.  This is because the companies cannot monitor thousands of sites for what might be incorrect product claims that would make the company liable.  That is a completely different issue.  This is an attempt to step in and control how we choose to conduct our businesses and which marketing philosophies we choose to endorse.

In a very interesting article on this topic, Mike Klingler shares his discussion with one of the people heading up  the movement against "the 7 great lies  of network marketing" book. He also goes into the use of how negative marketing has been used in a number of different industries.  Look for this article under "The 7 Great Lies of Network Marketing Sieg" at his blog.  A lot to think about.

There are strong emotions on both sides.  I welcome your thoughts on this issue.  I know this is a hot button topic, so please keep comments civil!