The Bitter Economics of MLM: Referral Programs

The transcript narrates a personal experience with a multilevel marketing (MLM) invitation, leading to a critical examination of MLMs. It highlights the questionable practices and criticisms of MLMs, often likened to pyramid schemes. The economics of MLMs are explored, focusing on their extensive referral programs. The structure of MLMs is discussed, emphasizing the roles of participants as salespeople and the challenges they face. The transcript concludes with the inherent limitations of the MLM model, including the unsustainable nature of its growth strategy.

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