the startups.com platform about startups.comCheck out the new Startups.com - A Comprehensive Startup University
Education
Planning
Mentors
Funding
Customers
Assistants
Clarity
Categories
Business
Sales & Marketing
Funding
Product & Design
Technology
Skills & Management
Industries
Other
Business
Career Advice
Branding
Financial Consulting
Customer Engagement
Strategy
Sectors
Getting Started
Human Resources
Business Development
Legal
Other
Sales & Marketing
Social Media Marketing
Search Engine Optimization
Public Relations
Branding
Publishing
Inbound Marketing
Email Marketing
Copywriting
Growth Strategy
Search Engine Marketing
Sales & Lead Generation
Advertising
Other
Funding
Crowdfunding
Kickstarter
Venture Capital
Finance
Bootstrapping
Nonprofit
Other
Product & Design
Identity
User Experience
Lean Startup
Product Management
Metrics & Analytics
Other
Technology
WordPress
Software Development
Mobile
Ruby
CRM
Innovation
Cloud
Other
Skills & Management
Productivity
Entrepreneurship
Public Speaking
Leadership
Coaching
Other
Industries
SaaS
E-commerce
Education
Real Estate
Restaurant & Retail
Marketplaces
Nonprofit
Other
Dashboard
Browse Search
Answers
Calls
Inbox
Sign Up Log In

Loading...

Share Answer

Menu
Business Development: Do you agree with multi level marketing business?
JR
JR
Jan Roos, Full-stack lead gen from clicks to phone calls answered:

As a consumer, I'm a big fan of disintermediation as a business model. I can buy a mattress for under $1000 that would have cost 3-5x that because of companies like Casper and Leesa. I'm not paying for a bloated, unnecessary supply chain to get it to me.

MLM introduces more hungry mouths to feed by the nature of it's business model. Where is that profit comings from? Three possibilities

1. Nowhere - the company is operating at a loss
2. The consumer - paying far more than they would for an identical good to support the passive income lifestyle used in recruiting materials
3. Failed distributors. There are pyramid scheme investigations for huge MLM companies making in some cases under 20% of profits from 'non-distributors' ie real customers.

I'm not in favor of any of those so I do not agree with multi level marketing business. Not here to make an ethical argument, it just doesn't add up from an economic perspective.

Talk to Jan Upvote • Share
•••
Share Report

Answer URL

Share Question

  • Share on Twitter
  • Share on LinkedIn
  • Share on Facebook
  • Share on Google+
  • Share by email
About
  • How it Works
  • Success Stories
Experts
  • Become an Expert
  • Find an Expert
Answers
  • Ask a Question
  • Recent Answers
Support
  • Help
  • Terms of Service
Follow

the startups.com platform

Startups Education
Startup Planning
Access Mentors
Secure Funding
Reach Customers
Virtual Assistants

Copyright © 2025 Startups.com. All rights reserved.