I said Larry is earning too much. I would rather listen to you once you make $1000.- per month (regularly). My potential sponsor is currently at $128.-, has got 63 down lines with many of them plugged in by a diligent upline. A direct deal with the energy provider is in the pipe.
In general MLM's only competitive advantage is free WOM instead of paid advertising. You can do the math rather quick. Lets assume the energy company pays 10% of their turn over to the whole sale distributor who pays 4% commission to MLM for bringing in the business and an additional 1% discount incentive to MLM's customers. MLM needs 2% to cover its costs and keeps 2% as profit.
- Advertising: saved 1%
- MLM Admin: spent 1%
- Competitive advantage: NIL, hence limited attractiveness !
So how does it work ? Wealth building is the core product. Inflate the perceived value of the advantage for the masses, set up premium pricing and reward the elite from the surplus. The masses have been sold the dream of success and wealth and have provided an up front capital injection of say a few million dollars into the business to get their kits, website code and license to play.
In general an MLM's appeal is rooted in greed. Read more about Wall street and Main Street here, in the forums or at scheme alert / false profits.
For the record: I don't suggest that ACN is a pyramid from a legal point of view and hence in any way illegal. ACN's ratio of business owners vs retail customers is balanced and demands that distributors do hard solid retail work. Of course the income distribution is pyramid shaped and saturation will ultimately threaten the business model. A business can not reward the lazy and grwoth can not be infinite. False advertising can be a common problem for any business.
Business can not reward the lazy.