Simply not true at all. MLM is a viable business model...

Not every MLM operates the way you describe. Some pay more in commissions, some pay less. They are not all the same and they are not all a waste of time or "inefficient" as you claim.

> So it's a bad business model, bleeding money at every step. And THIS is
> why it's not taught at major university business schools (or wasn't the
> last time I looked.) They teach economics (micro and macro), accounting,
> finance, marketing, entrepreneurship, etc, etc... but not MLM.

Nope. That is not why MLM is not taught at most universities. The reason why most universities do not teach MLM business models is simply because the vast majority of corporate America does not use the MLM model. They use the traditional retail model to sell their product. Given this, it would be counter productive for a business college within a university to teach MLM because universities are preparing folks to work in regular corporate America, not Amway.

This is the same reason why most universities do not teach much about small business. When you look at the # of small business classes offered (if any) they are very few compared to the courses that focus on corporate business. Universities exist to educate you and the goal of the average university student is to get employment as a result of getting a degree. Therefore, they teach that which is most practical within the industry being studied.

MLM is not the traditional model used by many businesses but that does not mean it is flawed model or inferior in most cases. You can disagree with companies like Amway but realize that there are many MLM companies that are not the brainwashing types and they do not force you to engage in the MLM aspect of the opportunity. And they pay better than 5% commissions.

I sell product from an MLM company right now and I have done this for over 3 years now. I get 25 to 30% commissions. The product is superior (in fact it is the best product of it's kind used by a very large niche in the USA and over the world. They chose the MLM model and they have been running under this model for over 30 years now. No flaws and very profitable for both them and their resellers.

I only sell product, I do not recruit other resellers actively. The product is great, the company is awesome, and the fact that I can recruit other sellers and make 5-10% on their sales is simply a bonus but it is not required and they never push the issue. You can retail it any way you want, even in a brick and mortar store (and there is one guy in my locality that has a storefront and all he sells is product from the MLM company).

If the company chose to be a traditional wholesaler where I would be forced to buy inventory and risk having to unload the product for a loss because everyone is selling it on eBay, I would not have been afforded the opportunity to make the money I make with the product. Mind you, I do not make a decent FT income but that is only because I only sell part time as I have other ventures. I do not believe in having one stream of income. That has poven to me in the past to be a recipe for disaster.

But to say that MLM is a flawed business model and to say that you only make 5% and the rest goes to the upline or whatever is simply false. False to the core.

MLM is not a flawed business model, just not the traditional model most distributors use. But that certainly does not mean that it is flawed.