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| Topic | One of my wife's family members fell for the Vector Marketing scam |
| DarkRoast 06/04/19 4:52:01 PM #39: | The loss rate for MLMs is at least 99%. This means that less than one in 100 MLMparticipants make a clear profit, and at least 99 out of 100 participants actually losemoney, Taylor reports. Less than one in one hundred. Your odds of sleeping through the night with three-month-old triplets are higher.Aug 17, 2017 https://due.com/blog/3-mind-blowing-statistics-about-mlms/ 99% of MLM participants lose money According to research at the FTC, a whopping 99% of recruited sellers lose money in an MLM venture. That means just 1% actually turn a profit. That is generally just those at the very top of a recruitment structure. Because recruiters earn from their own sales and the sales of everyone they recruit, and their recruits, and so one, those at the top can earn a profit. But with 99% of people losing money, its hard to see why anyone would join this type of company. Its hard to succeed in any business, but the success rate is well over the 1% you see in MLMs. The same FTC report explains that 39% of legitimate small businesses ultimately earn a profit over time. Thats still less than a 50/50 success rate, but about 39x better than an MLM. Before starting in any business, regardless of the product or service, do your research and find hard numbers on your odds for success. There is risk in starting any business venture. As long as you understand and can afford those risks, thats okay. However, you should never start a business where the odds of success are better at a Vegas slot machine. 95% quit within ten years What happens in a business model where everyone loses money? Everyone quits. Well, not quite everyone. But close to it. The same FTC report from Jon Taylor explains that 95% of MLM participants quit within ten years. Around 30% of all small businesses survive at least ten years, according to Bureau of Labor Statistics data. That means the typical small business has 6x the longevity, when measured by whos around after 10 years, of MLMs. While it makes sense that people would get want to move on from some businesses after a period of time, the rate at which people flee MLMs are a testament to the 1% profitability rate above. According to another study, at least half of participants quit within one year. All businesses take a lot of work and there is no quick and easy path to success. If there were, everyone would be doing it! --- Well allons-y, Alonso! ... Copied to Clipboard! |
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