Thread: All MLM companies are Pyramid Schemes. It's all about the math!

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.

Originally Posted by USANAWatchDog

All MLMs are pyramid schemes ...

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.

The whole entire industry is a scam. It is not about the product.

Nobody cares about the product. Period.

While I'd say "Oh come on, tell us what you really think" We know what you think. You've repeated it often, of course I've repeated often. We sell most of our products to consumers.

It is about the product. We lead with the product, we track the effectiveness of the product.

You have your opinion, but the law says you are wrong.

Originally Posted by iamwil

It is about the product. We lead with the product, we track the effectiveness of the product.

that's why your sig over at scam is all about recruiting, not the product.

You have your opinion, but the law says you are wrong.

The law says what's illegal and legal, not what works or doesn't.

Originally Posted by calvinandhobbes

that's why your sig over at scam is all about recruiting, not the product.The law says what's illegal and legal, not what works or doesn't.

Now my .sig over there is just for you. And as I've repeatedly indicated to you...the wellness challenge is all about product, and someones opportunity to get a free trial to see if it is for them. But you conveniently ignore that. The other part is unique to our company, methods to build a business by buying customers...I suppose I shouldn't mention that to anyone, that wouldn't make any sense.

No the law doesn't say what works and what doesn't. But tens of thousands (hundreds of thousands?) of MLMers do. MLM works to their satisfaction, tis why they joined and why they stay in, and why when one company or upline fails, they go and find another. We like it, you hate it, tis all perogative.

Originally Posted by iamwil

Now my .sig over there is just for you. And as I've repeatedly indicated to you...the wellness challenge is all about product, and someones opportunity to get a free trial to see if it is for them. But you conveniently ignore that.

in your sig (which breaks the rules of the forum), you lead with recruiting, then follow up with something that is related to the product. no one can even look at your sig and tell what you are selling....that's how great an advertisement it is for the product. of course, the income opportunity, we know exactly what you are selling, bad math.

BTW, you said you made 20k in income in your MLM at one point, now you are saying you've never made a profit? You do know revenue and income are different, right?

I believe that most MLMers stay in because the leaders are very charismatic individuals and are well schooled in dangling carrots in front of those beneath them. Great riches are "guaranteed" to be around the corner if they only (take your pick) but these magazines, buy more product, recruit more people, pay more money, attend the convention, buy and listen to this DVD.....

MLM preys on the people who are least able to afford to lose any money. The top of the chain does well and they know the drill and prey on those who can;t afford it and talk a good talk. If the underlings fail it is not the system it is that they failed to work the system like their "upline" did. It is impossible to work the system like the upline did because they did not enter early.

Just like the chain letters you get in the mail--same concept. The first seven people on the top of the chain stand a good chance of making some coin. The others beneath--not a chance in the world.

And if you look at the successful MLMs (there are very few of them) they are all based on product--Avon, MaryKay, Tupperware (to a degree), Longaberger, etc.

Originally Posted by jwf21403

I believe that most MLMers stay in because the leaders are very charismatic individuals and are well schooled in dangling carrots in front of those beneath them. Great riches are "guaranteed" to be around the corner if they only (take your pick)

You're entirely correct.

"well schooled" being the operative phrase.

Most people would be simply amazed at exactly how much time, effort and "science" goes into conning them.

There is nothing "accidental" about an MLM fraud.

good collection of information...thanks for sharing it