Nothing is more responsible for consumers falling into the MLM trap than the belief that they are investing in a “legitimate business.” Thinking MLM is “business” causes consumers to believe the “income opportunity” is real, that there is actual “demand” for the products and that there are “customers.” None of that is true. It also causes consumers to accept the MLM false claim that their loss and failure (99.9% always lose in MLM) is their “own fault,” due to lack of effort or other market reasons, not the MLM model.
If MLM were not thought to be a “business”, consumers would be far more critical and cautious. They would ask for more information on how “MLM” actually works. But, as a “business”, people understandably assume MLM operates as all business do, with an adequately disclosed contract, producing reasonable exchanges of value, and responding to “supply and demand.” None of this is true.
A new report has now been published that examines MLM’s false claim to be a “business” and shows, step by step, how it is not business at all. It is not sustainable. MLMs have no equity, only the liability of constant recruiting. MLM distributors do not “distribute.” MLM has no customer base. It is not a “channel.” And, for all but the top recruiters who make these false claims, no one gains an income from the false business.
The report is authored by Robert FitzPatrick and is based on his presentation at the first international consumer conference on MLM, held April 30-May 1. The 30-minute audio of that presentation is also now available.