... As to being against the principles of business,which principles would they be?
For your information, I have been involved in MLM very successfully, indeed MLM gave me the money to invest in my first pub. I haven't been involved since but am still friendly with people who have been with the same MLM company for over 35 successful years.I have seen it work for hundreds of people with my own eyes, so I know that it works.
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Well, what does success mean? Can you give numbers? Did you also sell "training", besides the official products?
As to your comment "There is nothing a franchise or MLM can offer you, that you can't do better yourself IF you really understand business and marketing." that would assume that you have the finances to do research and development, buy in bulk, create brand awareness etc etc.
I could take you to a hamburger joint that is half a mile from a Macdonalds. Their food is better and cheaper, they have an excellent local reputation. The business is well marketed and well situated. Yet they turnover less than half of what the Macdonalds does. Had the owner invested in a Macd franchise he would have made the investment back in extra profit within 5 years.
As to the majority of people failing, yes that is true, however the figures for the number of people succeeding in substantially higher than the 5% average across all business types.
Turnover is one thing. Profit is another.
Secondly, you do understand that McDonalds is not about the best food - it's FAST FOOD. Note the best, not the cheapest. Fast. Plus you can trust that you get the same thing everytime you buy it.
This means that cheaper and "better" is not what these customers are looking for.
What does well marketed mean?
You don't need brand awareness to have a profitable business. That's, by the way, another reason why new business fail - they focus on the wrong things.
Plus, the brands that MLM companies sell have little recognition outside of the MLM community.
As for the empire thing, that's what MLM companies use to lure people in. So it shouldn't surprise anyone that that's what people expect when they join.
To be fair, most people who start a business don't know what they're getting into either.