There continue to be really good points made here and, to be fair, the case FOR MLM is stronger here than in many forums.
The failures of groups in the MLM's that I was in were hugely varied.
The travel company that I joined failed to realise that freebies are part of the International Travel Agent's perks. Why are they. Because if you are to really understand how good a holiday or package is then you need to experience it. Tourist hotels and resorts have, for years, offered free or heavily discounted offers to agents so that they can gain the experience of a vacation. Hotels worldwide too have done this. The best way to sell holiday is through a good holiday experienced visitor.
The idea behind the company that I joined was to provide heavily discounted holidays to agents on the basis that they were bringing large numbers of visitors to a resort/hotel. The bigger the sales force, the bigger the sales for hotels as families and friends got involved too.
MISTAKE: One guy discovered that he could get free flight upgrades, reduced flight costs, cheaper hotels etc. by using the companies overall buying power however, he then recruited people to do the same. Instead of the companies getting more and more buyers they were getting more and more people getting cheap holidays for themselves and not the numbers expected. Couldn't last.
When I joined Amway I had all of the hype associated with the company and there is nothing wrong with that, it's a big sucessful company that has a set of morals and aims that are very high, however, the group that I joined stated "you don't need to get a lot of people buying product. Buy all the product that you can use, whatever you think the value is and get some others to do the same, get them to find people who can do the same and you will build a huge organisation turning over millions by buying and using."
What's wrong with that? Well, like Avon or other successful established businesses they need buyers who are not in the business to make turnover. If it wasn't like that it would have to act like a co-operative where buyers belong and share the profits. Far from the millions in the bank that MLM can produce. Why is this? because in all businesses there will be those who feel that SELLING is below them or that feel that if they get big and rich then they no longer need to sell. Good MLM team leaders STILL SELL even if not 24/7. They know that recruiting alone does not work.
So, if you get into MLM and be a success then you will need to sell and teach others how. So called successes in MLM have got to the top by buying a ton of stuff to get advanced levels in the business and then stopping, expecting those impressed enough to want it to do the selling. Guess what. The newbies aren't all that stupid, they realise what was done, copy the system and then the whole pack of cards collapses through greed. Some get burned because they just didn't ask the right questions.
I would love it if somebody read this and went and joined a company, bothered to sell as well as recruit and taught this to their downline. Big money can still be made but the advice given in this forum needs to be taken. GOOD saleable products at a price realistic to the VALUE. Uniqueness or longevity etc. are essentials along with a moral approach by the company and the uplines.
Some of the worst crimes that MLM companies have made have been that they didn't listen and continue to pay the price, even the big ones.
Want to do MLM? Why not? Get it right. ASK QUESTIONS, if you don't get answers that make sense walk away.
Roger