USANAWatchDog
07-30-2010, 08:20 AM
All MLMs are pyramid schemes due to the nature of recruiting downlines. When profits depend on having large downlines, then it is likely a pyramid. When commission is paid to upline members from the mandatory product purchases by the distributors whether those distributors resell the product or not, is likely participating in a pyramid scheme. When over 99% of participants are mathematically unable to make a profit, it is likely due to that MLM's pyramidal compensation plan scheme.
Anyone who works it out on paper can see that in order to profit, the distributor needs to recruit enormous downlines before ever having a chance. Most all MLMs have overpriced product instead of cheaper products when compared to off the shelf products.
I stand by the notion that all MLMs are pyramid schemes. Every single one of them. Name one that isn't, and then prove it mathematically.
Oh yeah sure, if the distributor is able to find real customers who want the product, and those customers buy only from that distributor, then the distributor has a chance. But most of the time, these MLM distributors have to resell the product at the distributor's cost just to get rid of it. Not only that, but there are distributors everywhere for the same MLM, which makes it almost impossible to profit. If McDonalds had 25 stores on a single block, then all 25 of the stores will not profit and will all lose money. Eventually, 24 of them will go bankrupt and close, leaving just 1. That remaining store will do good business... MLMs have no territorial boundary. So recruiting your family into MLM destroys your chances of making money from real customer sales.
I guarantee, all the Big Shot MLM distributors only profit because they have Gigantic downlines and not because they resell $100,000 worth of product to real customers.
The whole entire industry is a scam. It is not about the product. It is about the Business Opportunity. Nobody cares about the product. Period.
Anyone who works it out on paper can see that in order to profit, the distributor needs to recruit enormous downlines before ever having a chance. Most all MLMs have overpriced product instead of cheaper products when compared to off the shelf products.
I stand by the notion that all MLMs are pyramid schemes. Every single one of them. Name one that isn't, and then prove it mathematically.
Oh yeah sure, if the distributor is able to find real customers who want the product, and those customers buy only from that distributor, then the distributor has a chance. But most of the time, these MLM distributors have to resell the product at the distributor's cost just to get rid of it. Not only that, but there are distributors everywhere for the same MLM, which makes it almost impossible to profit. If McDonalds had 25 stores on a single block, then all 25 of the stores will not profit and will all lose money. Eventually, 24 of them will go bankrupt and close, leaving just 1. That remaining store will do good business... MLMs have no territorial boundary. So recruiting your family into MLM destroys your chances of making money from real customer sales.
I guarantee, all the Big Shot MLM distributors only profit because they have Gigantic downlines and not because they resell $100,000 worth of product to real customers.
The whole entire industry is a scam. It is not about the product. It is about the Business Opportunity. Nobody cares about the product. Period.