MLM -- The Hard Numbers
To fully understand how MLM becomes attractive, you must understand how quickly the numbers of people selling a product can grow. Obviously, the larger the number of people selling a given product, the more money can be made.
Below is a table showing how many total people needed to fill a matrix for the number of people recruited up to 10 levels.
| # of people recruited | ||||||
| Levels of Commission |
2 | 3 | 4 | 5 | 10 | |
| 2 | 6 | 12 | 20 | 30 | 110 | |
| 3 | 14 | 39 | 84 | 155 | 1,110 | |
| 4 | 30 | 120 | 340 | 780 | 11,110 | |
| 5 | 62 | 363 | 1,364 | 3,905 | 111,110 | |
| 6 | 126 | 1,092 | 5,460 | 19,530 | 1,111,110 | |
| 7 | 254 | 3,279 | 21,844 | 97,655 | 11,111,110 | |
| 8 | 510 | 9,840 | 87,380 | 488,280 | 111,111,110 | |
| 9 | 1,022 | 29,523 | 349,524 | 2,441,405 | 1,111,111,110 | |
| 10 | 2,046 | 88,572 | 1,398,100 | 12,207,030 | 11,111,111,110 | |
As you can see, the numbers can grow very quickly to large numbers. Here is a fictitious sales pitch you might hear based on the above table:
Come learn how to sell widgets and make $1 per widget sold. That is not the truly exciting part! The exciting part is once you join this program, you will be trained to recruit people to sell widgets, and you will make $1 off every widget they sell! Imagine if you recruit just 5 people to sell widgets, and each of them recruit 5 people. Our matrix is ten levels deep. You have the potential to make over 12 MILLION dollars!!! Sign up now!
That pitch is completely factual and accurate. If you recruit 5 people, and each of them recruit 5 people, and so on until you have filled and entire 5x10 matrix, you will have made $12,207,030. However, think about this carefully...
Where are the 12 million people going to come from? Even if you manage to get 12 million people to sign up, how many other people can sign up for the same offer and find 12 million people to complete their matrix?
Look at the number of people needed to fill a 10x10 matrix -- more than 11 BILLION people. According to the CIA World Fact Book, in July 2005 the estimated world population was around 6.4 billion people... so you will never fill a 10x10 matrix, provided we do not meet up with an alien race of hundreds of billions of members eager to buy your product.
| Previous |
Next Page |