Can mlm people please explain this?

Just if you hope to attract 3 people to your front line... and those people somehow get 3 people to their front line... it will look like this...





3


9


27


81


243


729


2,187


6,561


19,683


59,049


177,147


531,441


1,594,323


4,782,969


14,348,907


43,046,721


129,140,163


387,420,489


1,162,261,467


3,486,784,401


10,460,353,203





So after 21 levels, you have exeeded the population of earth. Then what do you do? This is why mlm will never work, ever. But if it can be explained to me... then I would be more open.





And please don't say... yeah but you only need like 1,000 people in your organisation and you are doing well. No, cause those people need continual expansion or the people at the bottom will quit. Then the people 2nd from the bottom will quit. Then the people 3rd from the bottom will quit, and so on. So please explain... here is your chance once and for all.

Can mlm people please explain this?
Not defending MLM, but you are partially right.





Indeed all they need is a total of 1,000 , or even 500 to do well.





People at the bottom can fail, stop, quit or whatever, but the pyramid will not collapse if the people on top do their own selling. This is true of all businesses, NEVER depend on others, whether they are on top or on bottom of you.





More importantly, people who do good in MLM need to understand, that they can do even better in traditional sales, because if you can get 3 people to get 3 people to get 3 people (and have a total of 3+ 9+ 27 = 39), there's no reason you can't get the 35+ on your own and keep all the commissions to yourself. In real world business, nobody is stupid enough to start up competitors for themselves.
Reply:first of all not all mlm compensation plans are designed this way. There are binarys, matrix, unilevels, aussie 1-ups %26amp; 2 ups, breakaway plans, etc... Marcello has only described ONE.





2nd there are actually mlm companies out there that you need less than 500 people to do QUITE well.





3rd it seems irrelevant to me that you go down 21 levels in your example. VERY few companies pay down that far, so to me Marcello's example is a bit ludicrous.





4th mlm DOES work IF you have a good product(s), a good compensation plan, strong leadership ... ie.. management, good policies and procedures.





There's a whole lot more to MLM than the perception you have, but I'm not in the convincing business nor the recruiting business, so I will just leave it at what I've already said.





~jennifer


Helping others create income from home through education of the system and how it REALLY works.
Reply:Tory, should I consider this flattery that you merely cut and pasted one of my answers as a question? Well, its still a good point, so good job anyway.





I wanted to address a couple things Jennifer stated which is a HUGE part of the problem.





First – all the compensation plans that have downlines require growth…so it doesn’t matter if it’s a 3x3 as stated here, or a binary, matrix, unilivel, whatever…they are have multiple levels which is the problem. This point merely detracts from the heart of the question (nice dodge).





Second – the fact that YOU can succeed with less than 500 people is EXACLTY The point addressed in this question. Sure, you can get in early and get 500 people and make some money, but the people below you will also need 500 people, and so will they, and in ANY system if you do the math its expands so fast its mathematically IMPOSSIBLE. This went RIGHT over your head because you are thinking only about the functionality from a single persons point of view, but EVEYRONE has to have a chance to succeed or it goes bust, and everyone does not because of the math.





Third – the fact that you think 21 levels deep is irrelevant merely because you don’t get paid that far is again you missing the point. You don’t need to go that deep, but surely your downline also needs to build, as does theirs, as does theirs…meaning if the whole thing goes bust before 21 levels, MASSIVE amounts of people will have ZERO chance to succeed. This is basic math, and you are overlooking it again.





Fourth – mlm works for the owners of the company, not the reps. If the product is great, and can be sold by an individual to make enough money to earn a living, than that individual will be fine. The question is clearly directed as the mathematical impossibility of expanding downlines.





You seem to have the GIANT misconception that MLM organizations can remain static…meaning they do not need to continually grow. If you think you can get 500 people into your downline and the last people in are going to stick around even though its not growing, then you are being shortsighted.





With all do respect, the fact that such a simple concept has eluded you gives concern to the fact that you suggest you are the one helping others. I really wonder what advice you are giving people that is helpful.
Reply:MLM is a ripoff unless you are one of the very first people to sign up. Then you can alienate everyone you've ever known trying to sell them overpriced crap that doesn't work any better than grocery store brands.
Reply:The following link explains MLM and how to counter negative responses.





http://www.firstclassmlm.com





MLM is either something you understand or you don't. People can say what they want about MLM. However, it gives someone who would not otherwise have the skills or money to open up a storefront business a chance for success at very inexpensive start up costs. Additionally, it allows a person to keep their regular job while learning to run a home based business, increase thier network of contacts, earn extra income and enjoy numerous tax deductions that do not come with a regular tax paying job. Of course, we wouldn't want to have anyone earning some extra money to pay off some bills and help their family.





While it is true that most people fail in MLM, the truth is, people fail at 80 percent of the things they try in life such as sports, real estate, acting, music, diets and more. People join MLM with the illusion that just because it is cheap (compared to regular business) and many other people above them are successful that they will be guaranteed success with little effort. MLM is a results based business while a regular job is performance based.
Reply:Tory,





For the sake of the math question you have here, you are assuming that this takes place in a matter of months. It takes time to build this type of downline. During that time, do you think that the population will stop growing?





I'm not going to waste my time and energy trying to convince you that MLM works because you are so closed minded on the subject that you refuse to accept any positive posts anyone has on the subject. But I do want to share some statistics with you that was published in Forbes Magazine, which this "naive, 25 year veteran of MLM" subscribes to.





Network Marketing is a $100 billion dollar industry worldwide and is one of the fastest growing trends in home based business. More than 10 million people in the US are involved in a Network Marketing business. It allows anyone, from any background or education to create a significant income in a business of one's own.





Many Network Marketing Companies are Fortune 500 companies, traded publicly on the Stock Exchanges and many are held privately. Mary Kay Cosmetics; Tupperware; Jafra Cosmetics and Avon are just a few well known and well respected companies using a network marketing / direct sales business model.





•Network Marketing has been written about favorably by major publications such as Forbes, Fortune, Success, Fast Company, USA Today and the Wall Street Journal.





I suppose that all of these professionals, including Donald Trump, who has spoken favorably about MLM in interviews are all idiots.





One of the main reasons that people fail at MLM is the same reason they fail at any job they try and that is lack of willingness to learn in their field in order to succeed further. People had rather stay opinionated and listen to the people who have tried and failed. My Daddy always told me that if I ever wanted anything in life to find someone who already had it and ask them how they got it, then follow their lead.





Why would I listen to someone who is NOT successful to achieve success? No, thanks! I will keep doing what has worked for me for over 25 years.





Bonnie Ramsey





Well, it is obvious the only reason you even posted this question is to bash something you don't even have the intellegence to understand nor the desire. When anyone tries to answer your question or explain something to you, all you want to do is launch a personal attack against them. So I will do what I know works and spend my time with people who are open to learning instead of attacking someone who has what it takes to make a good business work.
Reply:I'm very proud of you...you can multiply by 3 on a calculator! Very good.


But that's not the real world. So put your calculator down and run down to your nearest book store, grab a cup of Starbuck's and start reading "Chicken Soup for the Network Marketer's Soul".


You (Marcello) keep saying in each rant "Please explain...here is your chance once and for all". But when anyone tries to explain...Blam!! You belittle them and tear what they say into shreds.





The good news is, you have brought many people together who are like-minded and helped them to concentrate on the positive. Thank you for that.





Hope you're having a wonderful day! Earning lots of money....wink wink!
Reply:Maybe I can shed some light. What you choose to focus on is the hype and the exponential growth in the hype. NEVER has it worked hypothetically, yet there are a few who succeed. Are you suggesting that there are not some successful people in network marketing who have been bringing in a lucrative amount of money. All successful MLMer's have experienced


people dropping off. MLM is obviously not for everyone. As you know the marketing comp plan is based on recruiting. If you choose to look at how it can work, this can be used to bring an income as you build the residual side.(commission from products being sold) Not all customers of MLM products are representatives. Yes some products are overpriced, yet somehow people enjoy buying them along with the positive relationship between the distributor or rep. Troy, I would not expect you to understand how it will work. It takes an understanding from within, You have to make the choice to find out how it will work. What works for me may not work for you.





*edit*


I know this term is overused in MLM mindset, yet how is it that there are many who choose to be "close minded" and focus on how MLM does not work. The traditional way works for few as you have noted. There are many ways to be successful. You choose to point out the fact that Trump and Kiyosaki do not do MLM yet they found a way to profit from it. There are also several like you who have harsh feelings towards mlm yet profit from writtings and make lucrative money doing so.


So any smart business man or woman "could" find a profitable position in MLM. You don't have to be a Trump or a Kiyosoki to do it either.