Thursday, March 19, 2009

Multi-Level Marketing: Business Opportunity or Scam, 2

Continued from "Multi-Level Marketing: Business Opportunity or Scam"

One of the criticisms leveled at MLM plans is that they are "pyramid schemes". That is, that if you recruit five people, and they each recruit five people who, in turn recruit five people, and so on . . . you will soon run out of people. It's obvious that we can't all get rich recruiting other people, since people are a finite quantity.

It's true that MLM markets reach a saturation point at which growth must slow down. Of course, that's true of companies that enter any market. Early explosive growth tapers off.

But that does not mean that stagnation is inherent in the nature of MLM. Amway, for example has been going strong for many decades. How is this possible?

You must take into account the fact that since the days shortly after Noah, new people have been born every day. That means new people who are looking for opportunities come of age every day.

This, of course was part of God's plan from the beginning.

So God created man in his own image, in the image of God created he him; male and female created he them. And God blessed them, and God said unto them, Be fruitful, and multiply, and replenish the earth, and subdue it: and have dominion over the fish of the sea, and over the fowl of the air, and over every living thing that moveth upon the earth. (Gen 1:27-28)

Please understand, I'm NOT saying that the Dominion Mandate was a Multi-Level Marketing plan. But God's blueprint for dominion required an expanding population. As the number of people increased (geometrically), each generation would subdue a larger portion of the earth.

Mankind would reach total dominion at the same time that its population reached a saturation point.

The bottom line here, is not that MLM is inherently bad or that the concept won't work. The problem lies in overpriced products and massive hype. I want to address those issues in another post.

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