In an MLM, sometimes more euphemistically called a “direct-selling” company because the products aren’t sold in stores, salespeople frequently woo participants by dangling riches before their eyes as they are led to make big, upfront purchases of pricey products, then asked to recruit others under them to sell the product and recruit still more participants in the hopes of earning big commissions in what becomes a pyramidal structure. As Ramirez noted, most participants don’t make significant income. Following the Herbalife settlement terms would force these companies to ditch any deceptive income pitches and also keep track of sales to customers outside the member networks to prove that most of their products are not just being bought by the company’s own salespeople.
De firma Tupperware, een van de eerste bedrijven die in de jaren 60 via de 'Tupperware-parties' direct marketing in Nederland introduceerde, wordt vaak als MLM-bedrijf genoemd maar is dat gezien haar structuur niet. De aangesloten zelfstandige consulenten zijn in maximaal twee 'levels' opgedeeld. Een echte piramidestructuur ontbreekt.[2] In de jaren zestig ontstonden ook de eerste organisaties voor belangenbehartiging van netwerkmarketing in onder andere België, Duitsland, Frankrijk, Groot-Brittannië en Italie.[3]
During "the pitch," anyone can make it work. "It's the opportunity of a lifetime." "Just look at the math!" But mention the inevitable saturation and the losses this is going to cause for everyone, and then you'll hear, "Of course it would never really work like that." "Most will fail," you will be told, "but not you, Mr. Recruit. You are a winner. I can just see it in your eyes."
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