If MLMs are merely endless chain recruitment schemes, how do some MLMs survive for decades without collapsing?
A. Some MLM proponents argue that if it were a pyramid scheme, the programs would be destined to collapse. While this may be true for classic, no-product schemes, MLM promoters have found ways to survive and even grow. They do so by constant recruitment of new recruits to replace those dropping out, a process called churning. They move to new areas to start the process all over again – a technique that I call “re-pyramiding.” So they don’t collapse, but are in a state of continuous collapse – or churning through a revolving door of new recruits. The more resourceful MLMs survive for years and even decades by doing the following: • hugely rewarding top recruiters for constant recruitment of purchasing participants to replace those who dropped out, • duping law enforcement, media, and consumers about the MLM’s legitimacy, • requiring ongoing (subscription) investments by participants to qualify for commissions and advancement in the pay plan, • recycling through new markets or countries
A. Some MLM proponents argue that if it were a pyramid scheme, the programs would be destined to collapse. While this may be true for classic, no-product schemes, MLM promoters have found ways to survive and even grow. They do so by constant recruitment of new recruits to replace those dropping out, a process called churning. They move to new areas to start the process all over again – a technique that I call “re-pyramiding.” So they don’t collapse, but are in a state of continuous collapse – or churning through a revolving door of new recruits. The more resourceful MLMs survive for years and even decades by doing the following: • hugely rewarding top recruiters for constant recruitment of purchasing participants to replace those who dropped out, • duping law enforcement, media, and consumers about the MLM’s legitimacy, • requiring ongoing (subscription) investments by participants to qualify for commissions and advancement in the pay plan, • recycling through new markets or countries
