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It only works for the initial investors who set it up.
An old friend of my father's did this for a living for many years.
Anytime a new MLM would come around he'd go out and by a "franchise." Basically that would lock an area in that only he could work...that area could be a city or entire state and he would get a cut for everybody that signed up in that area.
He would be the guy that would book all those hotel rooms put ads in the papers and give those rousing speeches.
The way they make their money is by the fact that if you want to sell their product you yourself have to buy 1. And then he hopes you go out and get up to 10 people to do the same thing.
They coudl really care less if you actually build up a customer list...because he gets for example 1,000 people to start selling and they have to buy the product he sees $10.00 of that and right away he's already made $10K. Each person goes out and talks 10 people into becoming "sales people" as well and then he now has $100K.
He would only work each MLM for a couple of months 6 top because eventually it allways falls apart or the interest level drops...he would have a number of these going all the time.
Anyway...after spending some time with this guy and what he told me I wouldn't touch any MLM's with a 10 foot pole unless I was that initial investor.
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