defining MLM
I conclude with what I believe is the only accurate, research-based, and consumer-friendly definition of the business model labeled ―multi-level marketing‖: It applies to approximately 500 MLMs I have analyzed:
Multi-level marketing (MLM) is a purported income opportunity, in which products are sold by recruitment of persons who are incentivized to buy products and to recruit others in endless chains of participants, who must buy products to qualify for commissions and to advance upward through multiple levels in company-sponsored pyramids of participants.
Further – With unlimited recruitment, MLM assumes an infinite market, which does not exist in the real world. It also assumes a virgin market, which cannot exist for long. MLM is therefore inherently flawed, unfair and deceptive. It can also be extremely viral and predatory.
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