Over 99.25% of all MLM distributors participate at either an insignificant or nil net profit

MLM / Network Marketing Business model

Participant profits and losses

The overwhelming majority of MLM participants (most sources estimated to be over 99.25% of all MLM distributors) participate at either an insignificant or nil net profit.[10] Indeed, the largest proportion of participants must operate at a net loss (after expenses are deducted) so that the few individuals in the uppermost level of the MLM pyramid can derive their significant earnings. Said earnings are then emphasized by the MLM company to all other participants to encourage their continued participation at a continuing financial loss.[11]

Participant financial loss, company financial gain
The end result of the MLM business model is, therefore, one of a company (the MLM company) selling its products and services through a non-salaried workforce ("partners") working for the MLM company on a commission-only basis while the partners simultaneously constitute the overwhelming majority of the very consumers of the MLM company's products and services that they, as participants of the MLM, are selling to each other in the hope of one day themselves being at the top of the pyramid. This creates great profit for the MLM company's actual owners and shareholders.

Many MLM companies do generate billions of dollars in annual revenue and hundreds of millions of dollars in annual profit. However, the profits of the MLM company are accrued at the detriment to the majority of the company's constituent workforce (the MLM participants). Only some of said profit is then significantly shared with individual participants at the top of the MLM distributorship pyramid. The earnings of those top few participants is emphasized and championed at company seminars and conferences, thus creating an illusion of how one can potentially become financially successful if they become a participant in the MLM. This is then advertised by the MLM company to recruit more distributors to participate in the MLM with a false anticipation of earning margins which are in reality merely theoretical and statistically improbable.[12]

Although an MLM company holds out those few top individual participants as evidence of how participation in the MLM could lead to success, the reality is that the MLM business model depends on the failure of the overwhelming majority of all other participants, through the injecting of money from their own pockets, so that it can become the revenue and profit of the MLM company, of which the MLM company shares only a small proportion of it to a few individuals at the very top of the MLM participant pyramid. Participants, other than the few individuals at the top, provide nothing more than their own financial loss for the company's own profit and the profit of the top few individual participants






Do you know that MLM can be a great career if you do it right?

Who is your mentor?
Who leads you means a lot! Your friend, brother, sister, etc can talk to you about an opportunity MLM program, but then that is not enough to make the decision to join under them. Look for the person you want to join. Not really a successful network marketer, but anyone that you can feel better working with. Look out for the challenges that can come your way, ask more and more questions about how to, what to, when to, etc


Selecting your leader is a key in MLM. It won't make it easier, but at least it can help you in many ways. Don't join under someone because is your pastor, auntie, friend, or because he/she talked to you first about the opportunity!

What do you really want to do?
Do you really know what you want to do with the opportunity? Do you know this can be a remarkable source of income, joy, happiness, tours, etc???

I will be happy to talk to you!