What’s wrong with mlms?

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From my basic knowledge of mlm, you are basically just recruiting more people to work in a particular company, right? Why are so many people against mlms if you’re just helping people get jobs?

Edit: Okay I understand now

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Anonymous 0 Comments

It’s not a typical job, but rather a job that you have to pay to get, and hope that you can make the money back by selling the product or selling membership. Basically, the top people of the MLM will attract investors. They will tell the investor, “with small price of $10,000 per month you can become a member of the MLM family, and become a salesperson for Snake Oil.” Now, they may not charge you $10,000 upfront, but disguise that fee in other ways. They might say that you have to pay for “training” or that you need to buy a certain amount of product from the top dogs for month in order to remain “licensed.” The idea is that you pay them $10,000 per month because you expect to make more than that in sales of Snake Oil per month. However, Snake Oil is garbage and nobody buys it, so you have a real hard time selling it. The only way they can really make money is buy selling memberships themselves. So, the middle people go to other lower people and give them the same spiel. For every $10,000 investment they sell, the middle people get to maybe keep $1,000 of it, while the rest goes to the top dogs.

This is basically a pyramid scheme, but has the slightest hint of real business. Technically, you *could* sell $10,000 of Snake Oil per month, but is realistically not going to happen. The only way to avoid going bust is to get others to invest their $10,000.

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