Sunday, August 27, 2006

M L M - Those "be your own boss" claims

Ever been bothered by friends turned MLMers. No joke. Those guys are real hard-core sellers who wouldn’t settle "NO" for an answer.

I am personally not against it but I don’t believe it can work here. It’s a rather neat concept towards the democratisation of business. However, i am not sure about the "Be your own boss" claim.

Here’s an analogy I draw as compared to the serving of National Service. If National Service can be converted into a MLM, then there would not be any compulsory thing such as NS for males. What we have would be a wholly volunteered force who are paid well selling patriotism.

Health products seems to be the hottest thing to sell right now with MLM companies because everyone knows that health is wealth. But at what kind of price are we willing to pay for these kind of “magic” pills when we can just eat right in our daily life and we won't even need such products to enhance our lives.

Few things to ponder. How many downlines can I have? Let's say three (3). How many layers? Let's take it as twelve (12). Forming this structure is a GP of 265,720 people. It means that if you are on top, you have 265,719 people under you. If the company charge $40 for registration or whatever number they called it, a pyramid of 12 layers x 3 will bring $10 million for the company. The products might not really matter. It can go at cost or small margin to payout as commission. Just estimate from the “layer” position, is there enough people on this small island to sustain the business? My take is that if we are the few early ones, you'd probably make some money but that will slowly dwindle as more competition emerge.

I guess when a biz involves lotta people, you can never have a windfall of good. Then how bad could it be? One probably got to get involved with MLM in order to know it, I guess.

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