tag:blogger.com,1999:blog-6288862798546085706.post223908463556636930..comments2024-02-08T03:39:11.256-05:00Comments on Econometrics By Simulation: Diagnosing the Multilevel Marketting Trap: How MLM Survives Only through New EntrantsFrancishttp://www.blogger.com/profile/16658586705916884436noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-6288862798546085706.post-319183108332193492015-12-11T12:42:59.366-05:002015-12-11T12:42:59.366-05:00Yes, but the difference between MLM and other busi...Yes, but the difference between MLM and other business models is that MLM requires market saturation by design while traditional businesses prefer to focus on such things as unique product design, niche marketing, etc. Even in businesses which have very high failure rates you never ever say walk into a restaurant and the owner tries to convince you to set up shop as a competing restaurant next door. MLM is distinct in this critical feature.Francishttps://www.blogger.com/profile/16658586705916884436noreply@blogger.comtag:blogger.com,1999:blog-6288862798546085706.post-10778751012089827422015-12-11T09:23:03.912-05:002015-12-11T09:23:03.912-05:00The saturation of the market is based off a genera...The saturation of the market is based off a general assumptio That the product or products are in fact saturating it's given market. Similar to the "too much of a good thing is a bad thing" If we (the general population) would stop purchasing items with little to no necessary value then MOMs may not even exist... Let alone businesses. <br />9 out of 10 businesses fail (Forbes, Washington Post and Gallup business journal 2014-2015) <br />With that being the case one might ask why even try...<br />Yet people start businesses every day in hopes to establish a dream of working 40 hour work weeks for the rest of their lives.<br />FORBES goes on to describe why it feels why businesses fail by listing 5 top reasons... <br />ALL 5 have NOTHING to do with product nor saturation of product saturation. Instead have EVERYTHING to do with the one thing we can improve and or fix.. "the way the business is handled"<br />Any business will fail if failure is an option...<br />"It is amazing what ordinary people can do with preconceived notions."<br />- Charles F. Kettering<br />Anonymoushttps://www.blogger.com/profile/12639985552757080739noreply@blogger.comtag:blogger.com,1999:blog-6288862798546085706.post-23378225672778743862015-10-26T21:36:34.270-04:002015-10-26T21:36:34.270-04:00Thanks for the comment! Much appreciated!Thanks for the comment! Much appreciated!Francishttps://www.blogger.com/profile/16658586705916884436noreply@blogger.comtag:blogger.com,1999:blog-6288862798546085706.post-78524147279733595462015-10-26T21:36:18.372-04:002015-10-26T21:36:18.372-04:00There is a lot of variables that I thought to incl...There is a lot of variables that I thought to include such as naturally immunity to recruitment or sales but that will just make MLM less successful. I was certain going in that the model was unsustainable. So I built my simulation giving MLM as many ideal conditions as possible (such as high recruitment and marketing rates, high replacement rates, high profitability on sales, high commission rate, etc.) so that an MLM marketing "guru" could never say, "well this is the reason it failed".Francishttps://www.blogger.com/profile/16658586705916884436noreply@blogger.comtag:blogger.com,1999:blog-6288862798546085706.post-48611482055381029752015-10-25T21:29:52.542-04:002015-10-25T21:29:52.542-04:00From one who has heard the pitch so many times, th...From one who has heard the pitch so many times, thank you for this. I used to just think MLMs were evil, but now I know they're evil and impractical!<br /><br />The other variable I was thinking to include would be some kind of limiter to saturation. But as you say, I suppose this would be similar to regular franchises and not to any MLM situation.a Tomhttps://www.blogger.com/profile/07509077480190944037noreply@blogger.comtag:blogger.com,1999:blog-6288862798546085706.post-18304075114088090092015-10-24T23:31:06.338-04:002015-10-24T23:31:06.338-04:00Can't say I am familiar enough with the contex...Can't say I am familiar enough with the context to support or refute this claim. Thanks for your comment!Francishttps://www.blogger.com/profile/16658586705916884436noreply@blogger.comtag:blogger.com,1999:blog-6288862798546085706.post-33326336433204046722015-10-24T19:29:08.018-04:002015-10-24T19:29:08.018-04:00I suspect there's a similar phenomenon at work...I suspect there's a similar phenomenon at work in daily fantasy sports. The players that started when the sites were young and transferred their knowledge of online poker strategy are making out like bandits while the newcomers (and the sites) are losing money.znmebhttps://www.blogger.com/profile/00279858224379712739noreply@blogger.com