Really? I think thats exaggerated. I remember few years ago when I was doing my business degree, I saw it in a book about small businesses that around 70% of it will fail within the first 5 years. Now its 90-95%? More like the ratio for the distributors, lol
Yep, they just take even more cut under most of MLM's scheme
Most of them are very similar to pyramid schemes which the government is trying to ban.
Not really, it all depend on the business. If what you're doing is nothing new then all you need to do is learn more about it and start you're own. I didn't do anything of that for my business. If you can be successful in MLM, you can be just as good in starting your own but without anyone taking a cut.
Lol the statistics were just grabbed off the net and I didn't note the source I think it was the BBC or guardian but statistics can easily be manipulated and you may be right it may not be a true reflection. However they were stated in relation to the 95% or reps fail which wasn't drawn from any statistical data so without study rates for both the comparison cannot hold up anyway.
Hmm not necessarily it depends on your cost per customer acquisition and business marketing strategy.
You have to learn about the business, set it up, gain staff or product and market it out. I agree if you are sucessful as a sales rep you can be sucessful in a business but it is not as simple as think it up, start it and not everyone is in a position/mindset to do it.
It is all horses for courses, some people fail some succeed as they do in business on their own. My point is these businesses still have their place and help people that sell in them. Think of the single mum that can work flexible hours with Avon but wouldn't know where to start with a business, the special needs gent that sells household products via magazines, the retired man who doesn't want to start again but wants to top up his pension, the person with a full time job that doesn't have the time to start a new business but can do this on the side, the person that really doesn't know where to start with a new business and doesn't have an idea, the young 18 year old that has potential but not the experiance to start on their own. They have their place and people can be sucessful with them. There is risk in starting a business, some more than others, this offers the opportunity for some without the risk.
Could you create a makeup line, health line, home wheres line from scratch easily, get those contracts, distribute or manufacture those products, print magasines, sell them out. How many people have done just this and lost thousands!
Many businesses have staff that work day in day out for the same wage, sales staff that only earn based on what they sell and don't have the opportunity to recruit or train a team, these systems provide opportunity for those that want to work with an established company or brand but don't want to be hit with the standard glass ceiling.
So instead of saying people are stupid if they join these schemes instead of starting their own business, why not recognise not everyone is in the position to do this, not everyone wants to do this and these schemes offer a place to be able to work flexibly and potentially build a future.
What I don't agree with is companies that make people pay to work and focus solely on selling the their family and friends.
