Why use an MLM structure? It offers no benefits at all in terms of distribution of course – you “reps” aint involved in any of that, all you doing is sign people up for a utility. Why not just have it as a straight commission basis? Why have people pay a joining fee?
Why have them pay for a “web site” ? This makes no sense at all.
An MLM structure only favors those who are closer to the top – it does not serve your average “rep”. In fact your average rep pays off those above im with his joining fee and then pays every month by sharing the bulk of the profit from the customer with those above him. In fact the return to the salesman for the direct customer is what? 25c? The rest of the profit goes up the food chain.
Only someone who does not understand supply chain management would ever think that this is good way to operate. It is not.
As Hal is fond of pointing out – the only function for the bottom of the pyramid in these schemes is to funnel money up the chain.
Only a complete fool would somehow believe that increasing the amount of middlemen in a chain is somehow going to result in everyone making money.
And, if you get the figures from Ignite you will find exactly that.