The following is based on a study done by a friend and his partners in the early 1990s; indeed, things advanced to such a stage that they actually got involved with one of the companies as full time distributors.
The principle, while economically sound, must have core strength at its base and not fall into a well documented type of business known as pyramid selling, which became popular in the late 1960s and early 1970s.
When I say core strength, I mean that at its foundation any business must have a product that sells!
This may sound ridiculously obvious however a major problem occurring with many of the products marketed through this method, in their experience, has been that the products simply did not penetrate into the market successfully.
When joining one of the companies that participate in MLM, one is generally pressed upon to purchase materials for personal use and to buy stock for distribution to further people.
Additionally, whilst the figures shown in the literature are very impressive, to attain these figures it is imperative to introduce other people to the business thereby gaining a percentage of their material sold.
As...
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