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MLM promoters claim that most MLM participants sign up to buy products at a discount – or just sell part-time to supplement income. Whats wrong with that?

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MLM promoters claim that most MLM participants sign up to buy products at a discount – or just sell part-time to supplement income. Whats wrong with that?

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These deceptive arguments ignore the basic reality of MLM pricing and compensation plans. MLM products are not priced competitively (often at least triple the price of similar products from standard retail outlets), so that promised income from re-selling them, except sparingly to sympathetic friends and family members, is rarely worth the time. Actual sales to customers who are not part of the network of distributors are symbolic, but seldom significant. Products are sold through an endless chain of distributors, who subscribe to a monthly quota of products in order to qualify for commissions and advancement in the scheme – the “pay-to-play” requirement. But it is extremely rare for participants to recruit enough people to buy enough products to cover minimum pay-to play-purchases and operating expenses. That is why 99% of participants lose money and qualify as victims of these deceptive endless chain schemes. MLM participants who do actually earn enough in commissions and bonuses to

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