Posted by: garispang | July 23, 2009

It Is A Mathematical Impossibility For Any MLM/Network Marketing Opportunity To Actually Work – TRUE OR FALSE?

mlmSomeone on LinkedIn recently raised the issue that it is a mathematical impossibility for an MLM/Network Marketing opportunity to actually work because in order for an MLM/Network Marketing opportunity to work, it would have to grow (i.e new people recruiting new people) forever, ultimately ending with running out of people on the earth.

For example:
1 person recruits 10 people; these 10 recruit 10 (100); 100 recruit 10 (1000); 1000 recruit 10 (10,000); 10,000 recruit 10 (100,000); 100,000 recruit 10 (1,000,000); 1,000,000 recruit 10 (10,000,000); 10,000,000 recruit 10 (100,000,000); 100,000,000 recruit 10 (1,000,000,000); 1,000,000,000 recruits 10 (10,000,000,000 – more than the earth’s population).

So, does the math prove that this is true?

If it is a PURE pyramid (i.e. no products) and each person had to pay a fee to join and NO ONE EVER QUITS and everyone on earth is actually recruited AND gets involved, then YES, you would eventually run out of people. Let’s be honest, we all know that is pure foolishness and totally hypothetical! Is anyone out there really that stupid?

There are 5 things to consider with respect to this argument before you can walk away and believe this claim:

1. The whole planet will not and could not be recruited for an MLM/Network Marketing opportunity. That’s not practical, probable or makes any common sense. Is the whole world practicing free enterprise?

2. An MLM/Network marketing opportunity is NOT a pyramid – it is ridiculous to compare an illegal pyramid scheme to an MLM/Network Marketing opportunity in an attempt to discredit the MLM industry in support of this claim. There is a clear definition of both an illegal pyramid AND an MLM/Network Marketing opportunity provided by the FTC and the BBB for anyone interested in knowing the difference.

3. Anyone who has ever participated in an MLM/Network Marketing opportunity knows that not everyone will do something, up to and including recruiting! This particular issue is never factored into this math claim. When “Joe” recruits 10 people, 6 only buy the products for the wholesale price (no recruiting necessary), 2 get in because of a relationship (family/friend) and never do anything (purchase or recruit), and 2 actually do something (purchase and/or recruit).

4. The oldest MLM/Network Marketing company in the world is STILL GROWING TO THIS DAY, which makes this mathematical claim pure theory, especially considering point #2.

5. Recruiting new people is only 1/3 of the TOTAL growth of any MLM/Network Marketing opportunity, which means that if no one ever recruited, the business could still sustain itself WITHOUT the influx of new people into someone’s downline, and it could still grow. It is a myth that the only way to grow or succeed in an MLM/Network Marketing opportunity is by recruiting new people (again confusing it with an illegal pyramid). It would stop growing in numbers of new PEOPLE, but not in terms of new PRODUCT VOLUME. If no one else from today was recruited into all the MLM/Network Marketing businesses on the earth, they would not collapse because the products will still be purchased by both the customers (i.e. those who didn’t pay any fees to “join”) as well as the distributors themselves. Also, as new products and services are offered, new sales are generated on the SAME people thereby contributing to the growth of the business.

If you’re worried about running out of people, stop kidding yourself. The only limits are those that you impose on yourself. Talk to people who actually want what you have to offer and ignore the nay-sayers. While they’re talking theory, you can just smile, even giggle a little and keep working. That’s what I do.


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