doing a little snooping around on mlm, found this graph. also, found a bunch on mlm that have more than 5 levels in the downline
Quote:
There is seldom any functional justification for five or more levels in an MLM hierarchy of "distributors," other than to encourage recruiting and the illusion of very large potential incomes to more participants than is mathematically possible ? a hallmark of many pyramid schemes. When combined with the other factors herein, only those "distributors" at the top of the pyramid realize any significant income, and the extra levels only enrich those at or near the top of the pyramid at the expense of those beneath them. In some states, this could be considered "unjust enrichment."
So ? with an upline of many levels, the top-level participants may be profiting to an extreme degree from the losses of those beneath them. Such exorbitant incomes result from the reaping of huge overrides from the combined product investments of as many as thousands of downline participants, which increase exponentially with each added level.
|
