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Why are people in MLM so emotionally attached to the industry?

September 27th, 2008
MLM
Marcello asked:


I assess businesses for a living and look mostly at real estate. When I have been presented a deal and determined it was a poor investment, people generally do not get emotional or upset calling me names and telling me I am negative. This is the same in most business ventures.

But in MLM, you can express your opinion of it being a poor business choice and you get MLMers jumping all over you as though you insulted their family?

Is this because people get in to MLM emotionally instead of intellectually (on the hype as oppose to assessing it as a business), or is it because MLM is more cult like that they would like to admit?
plr2win, you have expressed exactly my point. The issue (well one of them) is that you need to depend on your downline for income, and thus at any given time, there are always more people producing less than is needed to provide themselves an income than there are actually earning an income.

You see, in real world business, whether it be sales, admin, management, whatever, the person working that position is always providing enough value to justify their pay. In MLM, the majority is always earning less than would justify incomes because instead of focusing on personal sales first, they focus on recruiting and thus need others in order to make money.

Show me a model where everyone is first made to do enough personal volume to make a good living then allowed to recruit and I will show you a decent MLM…but none like that exist.
plr2win - to further clarify, its not that I am suggesting the model is some unethical system, I am suggesting the presentation of MLM as a means a getting wealthy is a sham. Explain how an exponential matrix can keep supplying revenue streams for someone on your 20th level. You can’t because at that point you would need millions and million of people in your organization. This simply yet another reason that MLM is flawed as a “business opportunity.”
MLM like a McDonald’s franchise…thats Ripe! It would be the same if everyone in your neighborhood set up competing McDonald’s on every corner with no concern for how that competition affect each franchise, and also if the fry guys and cashiers only got paid when they brought their friends and family in to get jobs as well. Gimme a break. MLMers are kidding themselves with these false comparisons.

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