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Theoretically, MLM can work. In practice, most implementations don't work. The condition under which MLM can work is that the lowest level 'salesman' have suffi
by Confusion 14y ago
Theoretically, MLM can work. In practice, most implementations don't work. The condition under which MLM can work is that the lowest level 'salesman' have sufficient incentive to stay at that level, because they can earn as much as any 'manager' or because they like the work better. As soon as the 'managers' can quickly earn much more as any 'salesman' or the pitch is that everyone shoul strive to become a 'manager', then it's no better than the next pyramid scheme.
Tupperware is good, Herbalife isn't.
- skore 14y agoSo what you're saying is that MLM works the better it resembles an actual, honest business that does not rip off its employees. At the extreme end, MLM is pretty much exactly a pyramid scheme. Move, step by step, towards the way in which an honest business operates and eventually, it's working. Take it further to that point and eventually, it's not MLM anymore. So - why have MLM to begin with? Because there are con men and suckers. Which is why MLM is inherently bullshit.