Multi-level Marketing (MLM) or Network Marketing is very popular. It is used to sell vitamins, beauty products and many others as well. It generally requires face to face selling but some people use the internet to gain a down line.
Many people are attracted to the possibilities of large dollars to be made. Unfortunately, that is the exception and not the rule. Most people are not good at sales and aren’t aggressive enough and stick with it long enough to build a self sustaining downline. In fact a self sustaining downline is almost a myth because there is so much attrition. Other than a few companies that have been around for decades, most of the companies don’t last that long.
In fact one article claims that only around 50 MLM companies have lasted 10 years or longer. What happens is that when they have found as many suckers (I mean customers) as possible and have saturated the market, a new company gets started. Everyone likes to get in on the ground floor because that is where the money is made. The movers and shaker with big downlines get brought in and they bring as many of their prior downlines as possible and clean up. The people below them make a bit more for a while and them max out. So, on to the next company.