I understand what your point rfouke, but MLM and "network marketing" are an actual business system with the intent to make profit by pushing product (Such as cosmetics or food) or service (advertising, etc.).
Word-of-mouth itself is the basis of all brand goods and services of any industry. MLM can work, and does work for a segment of people. But there are too many cons that people like me don't like, versus the pros. I have experience within MLM's, especially Quixtar, and I come to not like it in the end. I gave it a few months, made some money, but the politics among the organization were ridiculous. That and its not something that I consider to be true sole proprietorship.
There have been lawsuits amongst the higher ups (diamonds and emeralds), and just...ugh I don't care for Quixtar.
For more info on MLM's, try out MLMWatch.com. I used it as a resource for a report on MLM's I made 2 years back.
"To walk in the shoes of a successful fellow, you must first walk in your socks to his shoe store.