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I think an MLM business can be described as a business model that is mathematically proven to not work and is intentionally employed to make the founders rich o

I think an MLM business can be described as a business model that is mathematically proven to not work and is intentionally employed to make the founders rich off the money of other people. A business that simply needs to reach a certain scale to be profitable by itself is not an MLM. For example a new chat application might require 10.000 users to pay off for the computing power needed to run the servers, so until you reach those 10.000 users you need to lure them in promising everything will work just fine. If you reach that threshold then everything will indeed be fine, but if you don't and run out of money you'll have to let a lot of people hanging. An MLM cannot possibly reach that threshold.

789itsfine 4y ago
That's a pyramid scheme. An MLM is (supposed to be) when product sales can still sustain the business at a marginal level, even while employing the same model of worthwhile profit being based on how many people you recruit. Of course, it's probable that many businesses that pass themselves off as MLMs are, in actuality, pyramid schemes that are able to hide their non-viability well.