Multi-level-marketing
I looked at this type of thing years ago. The only people who make serious money are the ones at the top of the pyramid. And the numbers don't add up.

Let's assume that to get 1 customer you have to ticket/leaflet/canvas 25 people (this is a wild underestimate, most mailshot or cold call campaigns have a less than 1% ENQUIRY rate let alone conversion to customer). That's 2,500 contacts to get the 100 customers they quote.

Then you have the MLM bit. You "train" some people (for argument's sake let's say 10)to be your next level. How do you recruit them? From the 2,400 people that DON'T want your services?. Then your 10 next-level types have to get 100 customers each, assuming the 25/1 hitrate, that's 25,000 contacts, 24,000 who DON'T want your services and 1,000 that will be customers.

Go down another level, and for each of their next level they have to contact (again assuming the same hitrate)... wait for it... 250,000 contacts, 240,000 of whom don't want your services.

So! From you getting 100 customers, your next level getting 100 each and their next level getting 100 each your own personal pyramid has contacted a staggering 277,500 people.

Therefore (not forgetting that you're targeting households rather than individuals) if just 20 people went 2 levels deep that's 5,550,000 households.

These systems work very much like gym membership - most people that pay a membership (199.75 in this case) NEVER USE THEIR MEMBERSHIP.

And how likely is it that everyone that pays the fee gets their quota of customers for a refund?

It sounds good, too good to be true in fact. Therefore it probably is.

Sorry to micturate on the pyrotechnics.
(Captain Placid 24/7 ball gags, brownie mix and clown porn, Sat 30 May 2009, 8:53, 1 reply, 16 years ago)

Aren't MLM / Pyramid Schemes
illegal? I thought they were. I'm probably wrong, though.
( The Light in Chains don't touch the Pope's boner, Sat 30 May 2009, 9:22, Reply)

This isn't a pyramid though!
This is a trapezoid!
(Potty Jag har smör i min rumpspringa, Sat 30 May 2009, 9:22, Reply)

Oh, well that makes it alright then.

( The Light in Chains don't touch the Pope's boner, Sat 30 May 2009, 9:25, Reply)