Quote:The reason I label all MLM type schemes as scam/fraud is because they are inherently not workable as a business model.
Orginally posted by rajcanada
Though I am not part of any MLM scheme, they are not scam or fraud as such. You have to recruit people, people pay the company, and the company pays a part to you.
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Quote:
Orginally posted by pratickm
...The people who start the scheme and those you control the core of the business know this - they are the people who actually profit from the whole scheme...
...Back to the first point I made - an MLM scheme is inherently an unsustainable business model.
You must be familiar with the basics of demand/supply in a merket-driven economy (basic high school economics).
The basic assumption of an MLM is that there is an infinite demand for the goods and services that the company offers.
The only way it can work *profitably* for everyone involved is if this assumption is true - if people go on buying the products at an ever increasing rate...
This simply does not happen - there is no product that has an infinite demand.
An MLM model is destined to fail sooner or later - how soon or how late depends on how many new recruits the existing members can find.
If enough new members can be found at an increasing rate, then the business sustains itself on the membership fees and the purchase of the products from the members themselves - but that is again limited.
After all, how many herbal shakes can you drink in a day ? ...
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Quote:
Orginally posted by BlueLobster
Here's some more info on this
http://www.canadiandesi.com/read.php?TID=1379&page=1#8550
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