New Wave - you are absolutely right. MLM is geared towards recruitment of new members rather than the sale of a product or service. It's about a lot of people doing a little bit each (consuming the product and telling a few other people about it), instead of a small number of sales superstars going out and selling a ton of product - that's the direct sales model. Network Marketing (MLM) is a different version of direct sales. That's why there is the emphasis on sponsoring other distributors.

Taught in the right way, you are never "pitching" to family and friends. Most network marketers have not received adequate training on how to correctly 'do' the business. I'm going to guess by your negative view of MLM, that you have been approached or have experience with people with less than adequate skills and that is how you have formed your opinion. That's rather unfortunate because there are many (including myself) who treat it as a profession.

When people are properly trained 'how to do the business,' by learning effective marketing, they aren't reliant on their family and friends. So people don't have to be 'running on fumes' as you put it when properly trained.

If you care to get a better understanding of how the business really works, you may want to check out this video explanation: How Network Marketing Works/