Friday, January 7, 2011

MLM Bloat

MLM The Truth � Blog Archive � High prices of MLM products: "Since MLMs are structured with a bloated hierarchy of participating “distributors” ( or whatever they choose to call them), the prices of their products are high to accommodate them. So MLM founders typically select or develop products that are unique enough to make comparison shopping difficult for unsophisticated consumers. And since most purchases are by the participants themselves, and not the general public, products must be consumable – assuring repeat purchases by participants who must buy a specific amount of products on a regular basis to qualify for commissions and advancement in the scheme. These can be considered “pay to play” or incentivized purchases – and are what typically finances product-based pyramid schemes that are dependent upon recruitment of (and personal consumption of) a revolving door of recruits, rather than on sales to the general public."