[AIsuccess]

There are lots of MLM programs that require you to build a large downline before you see a check like $10,000 a month.

They say if 3 get 3 who get 3 and etc... While there is nothing wrong about getting residual income the fact is most people want money sooner than later. The other fact is that the compensation plan looks great on paper but how many people are able to build it that big?

It takes tons of people before you see those thousand dollar checks. What I like about EDC Gold is the first 4 people joined you earn about $4000! Why sit around and wait to build a mammoth organization while with just a handful of small results pay you huge returns. I'm sure you can handle the fact you could be earning $3000 to $10,000 a week with only 3-10 sales.

Now what if you do build it as big and keep getting paid $997 and you keep 100%.

Call me Crazy but EDC Gold makes a ton more sense and you don't have to wait on the 2-5 year plan mlm teaches.

This is Not MLM and there are tons of people on the under 4 month plan compared to the 2-5 year plan.

My sponsor's Team Only training will help you get there. Click on my signature.

[Jammy]

yes I have to agree with you - why not MLM? I too have managed some successes with MLM - many just poo poo the idea for the sake of it because of the old pyramid schemes of the 70's and yes similiar to them schemes of the day of course the man at the top gets heaps but mathematically it just filter down and the MLM of today is far more generous in it's filtering down of compensations. Interestlingly harvard business school see MLM as a valid way to make money / business.

I like the following, it is simple and the product is good - the health and well market is the fastest growing industry so MonaVie is meeting a need, it's a very good genuine product with a very clever amrketing and sales structure. The Americans loved it especially after it was on Oprah and I beleive it will be shown a lot of interest here in Australasia when it's given airtime so I sit here and wait. Yes it is MLM and so obviously it is about signing agents rather than selling the product, but it's your choice:

www.mymonavie.com/monavieNZ

[djsoulfinger]

I think MLM is the way to go. People don't realize a pyramid scheme is a company with no product using people to generate money for their own financial gain. There are tons of companies out there with good products who use network marketing as one or their only strategy. Network marketing allows you to build a team of individuals selling a product or service that you can obtain residuals on in the future. To me it makes sense. Just look at the companies that have been around for more than 10 years like avon, herbalife, melanuca, etc. There are lots of them that have created a good amount of wealth for people.

[crud3w4re]

What is MLM? Doing the selling for a lazy company?

[PsiPro]

I will tell you why NOT MLM.

Any company that requires you to have a down line is a shame, plain and simple. Yes the people on the top make money however you essentially screw over thousands.

You start, you referrer three people, and each of them refer three people etc.

The formula for how this works can be modeled by using 3^x where three is the number of people you need to refer and X is the numbers of tiers deep you need to be. This gives you the number of people ON THAT TIER only. Not the total number in the pyramid scheme.

Now lets pretend that every single person in the USA signs up for this program (all populations figures are from the CIA world fact book), there are currently 298,444,215 people living in the USA as of 2006, but lets make it 300mil for simplicity.

So we have 3^x=300000000, we can solve for x by using x=log(base 3)(300000000). Now our calculators do not do log base 3 so we need to use the change of base formula and the equation becomes (you can put this in your calculator) x=log(300000000)/log(3) and x equals 17.7.

So after 17 tiers you have more people in the bottom rung of this program then you do in the USA. And of course all of the people in that bottom run are not making the money they are supposed to be, they paid that $997 out to the person above it and have no chance at all of getting their money back let alone making money.

Exponential functions grow so incredibly fast that the entire worlds population of 6.5billion would be expended in just 20 tiers.

That is why MLM and ANY program that requires referrals to make money is a scam and for every person who makes money there are plenty who do not.

Keep in mind this is a conservative estimate, I put every single person on earth in the bottom line. To find the more realistic and accurate number you would need to use:

300,000,000 = sum(from n=0 to n=x)(3^n)

I'm late for class, I'll work on this problem while I am listening to the lecture.

[hypnotikk]

This theory is nothing new. I suppose the refrigerator industry would go bankrupt quick, right? Who knows when will be the next time I'll purchase another one. And stoves, and dishwashers, etc.

[PsiPro]

Originally Posted by hypnotikk

This theory is nothing new. I suppose the refrigerator industry would go bankrupt quick, right? Who knows when will be the next time I'll purchase another one. And stoves, and dishwashers, etc.

I'm sorry but no. Refrigerators, stoves, washing machines, zip-lock bags, cars, etc all need to be replaced as they are worn out.

As time and technology progress they are upgraded. When will you purchase another one? 10 years. However you will purchase another one. How many people reinvest in an MLM at the bottom of the line? These theories were tried with the eGold HYIP. People don't reinvest and money doesn't come from nowhere.

If these MLM are selling a viable product then there is a chance, but if the only or primary way to make back your investment is to refer others there is no other classification for it. http://en.wikipedia.org/wiki/Pyramid_scheme

This theory is nothing new.

hypnotikk: Your right, I'm just restating the facts for how these systems work. The difference is my 'theory' is based on factual numbers, and the money making theories proposed by companies is based on the truthfulness of the statements of the people at the top of the pyramid.

In class I whipped out the old math books and got the formula for calculating the total number of people in a pyramid scheme at a certain level.

Total Number of people = (1-R^n)/(1-R) where R is the number of people each person must refer and N is the current depth. You can check this by drawing a simple diagram and running the numbers.

Any reader should keep in mind there is a difference between MLM and a pyramid scheme. However the site that is refrenced in the first post with regards to the $997, is http://growrichsystems.com, you can watch their movie here: http://www.growrichsystems.com/tour/watch-movie.php they clearly tell you that you will be reselling the product you are going to buy. Not to mention that your first two sales are going to the person above you before you even make money. This is not an MLM.

From Wikipedia "A commonly adopted test of legality is that MLMs must derive 70% of their income from retail sales to non-members"
and from the Federal Trade Commission (http://www.ftc.gov/bcp/conline/pubs/invest/mlm.htm) the GrowRichSystems violates #s 1,2,3 and 4.

Its simply not possible, in order to make money off of these programs that are dependent on referrals you must be at the top.

As an engineering major I'm a bit biased, but my option is that numbers do not lie, ever. People do. And as has been said many times on these forums, if it is too good to be true it is. I have nothing to gain by tearing down these programs, I have never participated in one becasue I have always seen this problem, and I never will. Who knows its possible that they have some secret that will grow the money for me and I'm just missing out.

[EBizCoachAlan]

NOT MLM - especially health, fitness, beauty, soap, home products because you can get it for 50% off at the local Wal Mart and Costco! And nobody in their right mind will buy their EXPENSIVE products.

NOT MLM because the upline "Diamonds" make money off useless motivational tapes you can get online for free online

NOT MLM because you look like a big dork trying to figure out if that "sharp" person at the gas station is an opportunity "looker"

[jesterx]

dont waist your money with MLM or those stupid HYIP's otherwise you going lose money or waist time. both of these will be the start of your downfall.

think before you do anything or start any business and get lots of help from someone in the know first. get a mentor if that is at all possible.

[Matic]

What happens when you sell a dream to people that you can't theoretically actually provide? Especially since you will be probably be selling it to your family members and their family members etc. You honestly have no idea what level you are on, and the more money you make the less the chances become for everyone you care about.

Now imagine if the whole country did it? And last, ever hear of the phrase if it is too good to be true it probably is? $50,000 a month for doing nothing... Also, power and respect is a lot more valuable than money. I doubt anyone who builds a fortune selling people dreams they will never receive will ever receive respect and power. You might as well become a drug dealer, porn star, or prostitute.

My 2 cents