A lot of multi level marketing aka MLM has been employed by companies in these past several decades and many have fallen victims to them. MLM has left a lot of grieve and misfortune for people who wanted to “live the American dream” which is usually the sales pitch made by MLM companies to recruit people. The word MLM is so bad right now that most MLM companies do not associate themselves as MLM when in fact they are.
A multi level marketing distributor only source of income is commission. To even become a distributor, one would need to pay from hundreds to thousands of dollars to get the starter kit; most of these people end up bankrupt because of all the fees and expenses incurred after becoming a distributor from the MLM program. In MLM, the early comers become rich from recruiting people where they get commission points whenever the recruited make a sale. The best part is when the recruited enrolls new members, the early comer will even get commission points when the new members make a sale too. That’s how MLM works and how early comers become rich.
Some people fake their riches and high lifestyle after joining a MLM program in hopes of recruiting others. However, they usually end up homeless and broke from leasing and buying expensive luxuries. As more people join the MLM Company, the late comers lose since they are competing amongst themselves and prospects are already exhausted (both recruiting for commission points and selling for sales). Turnover rate is high for MLM so there is always a need to obtain new recruits in order for the early comer and owner of the company to prosper.
The company owner and the early comers are the only winners in this zero sum game which makes up the few percent. Basically it reinforces the foundation of the rich getting richer, poor getting poorer. With so much bad publicity and lives wrecked from MLM, the only reason it has survived even now is because we are naïve, desperate and no government intervention. If you want to try MLM, you have to be early in the game to succeed.
