Unlimited recruiting in MLMs also changes the marketing nature of the system from one of a network of “distributors” to a network of buyers. Any clear distinction between buyers and sellers is blurred – even evaporating. The sellers are the buyers, and the buyers are the sellers – to themselves and their families. Also, we see the fallacy of the claim of MLM promoters that they are removing the “middle man” in their marketing system. Actually, in an MLM, middlemen may be multiplied hundreds or thousands of times.
New MLM recruits buy products mainly to qualify for profits from recruiting others, rather than from any real need for the products or from any expectation of profit from retailing. And as people tire of being solicited, the perceived opportunity to find willing buyers eventually diminishes to a trickle. Since the retail market is a phantom one, in order to increase the base of recruiting prospects who will pay retail to “play the game,” we see promoters introducing new product divisions or opening up new markets to recruit in other areas.