Also people say they ruin lives, how?
In: Economics
There are other good explanations elsewhere so I’m going to focus on one key part of the answer – the issue of MLMs lack of real customers.
There is nothing wrong with a system where you sign up to become a reseller of a product, so long as that product has sufficient genuine end-users who you can sell to. By ‘genuine end-users’ I mean people who use the product, think it is broadly worth the price, will pay for it, and do not need to be pressured into becoming resellers themselves.
In MLMs, there are no genuine end-users, or so few that they cannot possibly sustain all the resellers. Pretty much everybody buying the product is doing so to help sustain their own ‘business’, or because they are pressured to do so to support friends or people higher in the network. No one would be buying that product at that price, if it weren’t for being an MLM, especially as they tend to be low-end products at high-end prices.
Latest Answers