i’ve been doing some research but i don’t understand it fully
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MLM schemes are “advertised” as joining a business to earn money in a familiar and reasonable way. Like investing in stocks or selling goods.
However, actually doing those things is very difficult. 100s of companies go bankrupt trying to do that every year.
These companies don’t earn money by doing that. They earn money by charging people to “be a part of the next big thing”.
In the stock example, the “return” comes from the money people who joined after or under you “invest”.
In the goods example, the people you are selling to are the lower distributors and you are selling them goods, you are “distributing merchandise”. It only becomes profitable when you “distribute” enough merchandise to the people below you to get the distributor price. Most people have to “quit” because they have a house full of useless products they can’t pass onto another sucker and no money to buy more after all their friends and family make their one time pity purchase.
The people at the top spend as much money as they can to “appear” rich. Which is why it seems like such a good idea. Most companies have too many costs and actual numbers to backup their claims, these companies need to fool you.
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