Originally Posted by MariconesUnited
MLMs are scams. Each and every one of them. Some of them are worse than others, but that doesn't make any one of them morally or ethically right. The fact is that the success rate for the very ''best'' of them is under 1%
MLMs say they sell products or services. They don't. They sell dreams. To suckers.
Take Amway for example. They'll take a breath spray that costs 8 cents to make and then sell it through 10 levels of people. The final retail price of that might end up being 3 dollars.
So what they are doing is taking one of the things that most businesses try to eliminate and making it the center of their business(middlemen). I might not be able to get breath spray as a single item for 8 cents but I probably could get it for 2 dollars in a local store.
Now what happens if someone happens to decide to make a very similar breath spray but sell it for a dollar less? Well if he does a good job in the other areas of what he would need to do he would make a lot of money. By keeping his costs down and eliminating the middle men he gets the result of being able to make more money because his demand will be higher.
So in a way most types of physical product based MLM's shouldn't exist at all because that product should be in a store. I could though see a service based MLM do well. Like a dog walking MLM system that tried to build up a brand for the overall service might work. Or a delivery service MLM.