What Is this Thing Called “Multi-Level Marketing?
This article by Robert L. FitzPatrick is an economic “portrait” of multi-level marketing (MLM) in the USA. The report has compiled and analyzed the data on three of the oldest and largest MLM companies, Amway, Herbalife and Nu Skin in a readable and understandable way to paint a recognizable picture. Together, these three constitute 10% of the entire MLM operations in America and serve as representatives of all others. About 1.5 million Americans are signed up in them each year. Most quit within a year. The report shows shocking loss rates among participants and an extreme transfer of money to the 1% at the top. The study also examines the potential for “retail” sales by distributors, which turn out to be non-existent. Finally, the report examines the financial chances of success of a new recruit joining any of the three today.