Multi Level Marketing and Network Marketing explained - vital information for the potential new MLM recruit.
Recruiting in MLM
IS MY MATH UNFAIR TO MLM?
Many pro-MLM visitors to this site make comment as to the “unfairness” of my mathematics. Most usually, the comments make much of the fact that I do not include in my extrapolation examples, those people who are approached but who do not take up the offer, or, those who take up the offer, but fail to find the “seven” (as part of their personal failure factor) people needed for them to sign up their first person. I am told that both types of people have failed to get their first recruitment success and therefore cannot be considered as part of the example I have given.
They go on to say that the actual numbers are therefore far less than those I have given in my examples, because it means... “that fewer people are searching for new recruits at any given time than would be suggested by my example”.
Are you confused here? I am too. But the fact is, the argument is actually circular in nature.
With a geometric progression recruitment scheme such as MLM uses, the failure of many legs to progress to a successful, time- and number-based conclusion, is almost universal. Nearly everyone “fails” to achieve the desired outcome. Nevertheless, recruiting continues on, almost unabated.
Each and every person who whole-heartedly embraces the MLM concept initially will do his or her utmost to recruit as many people as possible in the time they allow themselves to do so. The recruiting never stops, and this is the secret of MLM’s inner circle of success. It matters not whether people who come in fail or succeed in the short or long term. It matters only that recruiting levels are maintained or increased, as must happen when nobody has a restriction as to sales territory or numbers of salesmen.
Perhaps an analogy of sorts may be drawn from the operation of a nuclear reactor. Without the ability to control or limit the extent of the reaction at the core, the reactor theoretically blows up very quickly. The chain reaction becomes uncontrollable, so that a split second after releasing the restriction, we have total destruction. A nuclear chain reaction of this type, when reduced to simple mathematical terms, may be properly described as a “geometric progression”.
The limiting factor that prevents MLM completely destroying itself is the failure of so many people. If, after being recruited, no-one walked away from it, then it would quickly grow until every possible person in the world was involved. The fact that it doesn’t do this is its saving grace.
Just as heavy water is used to control the rate at which uranium isotopes decay in a reactor, the planned failure of so many recruits controls the actual size of any MLM at any given point of time. If heavy water is reduced at the isotope, the nuclear reaction speeds up (gets more heated).
If less people are caused to fail (by a combination of salesmanship and clever inducements), then the MLM cycle heats up and recruiting picks up apace. It will eventually over-heat, become uncontrollable and begin to self-destruct, causing the cooling-off part of the cycle to commence. But so much money is made by those in control.
Those at the top enjoy the ride - all the way to the bank. Those who joined them and went along for the ride are left wondering, “What the hell could possibly have gone wrong?”