Do not some MLM programs qualify as legitimate income opportunities?
After studying over 300 MLM programs, my short answer would have to be “not likely,” with the possible exception of some party plans that emphasize sales to non-participants. To be legitimate and fair, an MLM would have to depart from the typical MLM model of an endless chain of recruitment of participants as primary customers – which is virtually all of them. In other words, they would actually have to retail products to non-participants and pay the bulk of their rewards to those actually doing the selling, rather than to the upline. To those familiar with qualified independent research, MLM (or any chain selling program) should be considered an unfair trade practice. It enriches a few at the expense of a revolving door of hapless victims who lose money – after subtracting necessary purchases and minimal operating expenses. (See MLM Research, MLM Evaluations, and MLM Statistics.
After studying over 300 MLM programs, my short answer would have to be “not likely,” with the possible exception of some party plans that emphasize sales to non-participants. To be legitimate and fair, an MLM would have to depart from the typical MLM model of an endless chain of recruitment of participants as primary customers – which is virtually all of them. In other words, they would actually have to retail products to non-participants and pay the bulk of their rewards to those actually doing the selling, rather than to the upline. To those familiar with qualified independent research, MLM (or any chain selling program) should be considered an unfair trade practice. It enriches a few at the expense of a revolving door of hapless victims who lose money – after subtracting necessary purchases and minimal operating expenses.
