Its not really that complicated

I am going to be courteous because Hal suggested we should be 🙂 Since all you good MLMers insist on comparing MLMs to traditional businesses, let me just say – In traditional “brick and mortar” operations the money always flows into the organization from outside – ALWAYS! More of this money goes to the top, but it does trickle down in a pre-negotiated fashion.

In MLM, the money always flows from the bottom of the pyramid to the top – ALWAYS! You HAVE TO do your bit to participate. There is very little (if any) money coming in from outside. Most of the revenue comes from the distributors (The churn at the bottom is by design). The model is DESIGNED to make 99% fail (They are just temporary customers –
tricked into thinking it will lead to enormous wealth). Also, the idea that purchasing product for personal use somehow constitutes an “investment” is ludicrous to say the least.

Thats all I have the patience for ;). Hats off to Hal for de-constructing your arguments with more patience than I can muster.

I hate this analogy and would like to respond to it

When a person is hired at a company they are not expected to go out and find as many employees as they can and hire them. The company just hired a new engineer and he has not been asked to hire a bunch of engineers to come in and find even more engineers. We just needed one because that is all the work there is to be done. MLM’s need you to recruit as many people as possible even if the market is saturated. That right there makes no sense what so ever.

Now when it comes to franchising. McD’s and others do not have another one right across the street. There are territories, and if the market can handle it you will see another one a mile or 2 away.