Is Multi-Level Marketing a Good Way for Product Distribution?

You probably did not do things wrong. They seem to be designed to where you have to buy your positions in order to earn. The First levels should pay MUCH better and the product should have value that cannot be acquired elsewhere.

What you want is to turn it into a commissioned sales job, which kills the leverage an MLM supplies. Many producers are turning to MLM because it produces pro-active distributors instead of putting product passively on a shelf and waiting for someone to pick it up on impulse. The cost of distribution is lower because product is only shipped on demand and avoids the slippage normally found in shelf sales. It also eliminates advertising expenses in favor of free word-of-mouth advertising.

That doesn't surprise me, they are among the hardest to promote from my experience too. The problem is the value is not there so they are really an excuse for a Ponzi like I mentioned.

Shoot me a note and I'll be glad to give my opinion, for whatever that's worth.

Why should one have to purchase a privilege to sell anyone's product?

Does one need to purchase some bonus packs to get commissions above pitance?

No one said anything about purchasing a privilege to do anything. All I ever buy is the product itself and only what I need for myself.

Very good assessment of MOST of the bad ones, but your scenario does not have to be the only case.

First saying they feed off others just because they pay an override commission is not accurate. If the plan is set up so anyone can just be a customer and never go any further if they choose not to, how can that be feeding off anyone?

The jacked up prices is common, but not always the case, as are the fees and membership costs. I happen to use one that sells product for the exact same price I paid in my local outlet before I found them and there are no extra fees ever, not even shipping.

If your pay is determined on only your own efforts, you will be limited in how far you can go by your own time constraints. I prefer to have thousands of tiny fingers doing my work as opposed to me putting my shoulder to the wheel.

Just some thoughts.

Easyliving, I agree. An MLM should be a product with a plan instead of simply a plan looking for a product.
Too many of them want you to fill the garage before you can get into a commission level high enough to survive.
If one must recruit continually to keep it alive, then it's NOT product driven. It's a recruiting business! I've seen many people say you can walk away and experience residual income.
How many reach the high commission rate levels? FEW!
I'd love to join an FREE-to-join MLM with a good product and pay plan that pays enough on the first and second levels to be interesting. I've never seen one.

Only because you have your eyes closed to the facts and focus on silly percentages instead of the product you seem to care so much about. If all the commission was on the first level there would be no leverage and that's where the benefit of such a plan is. If you just want a job as a straight commissioned salesperson, then be an affiliate for some good product.

I guess it depends on your definition of selling. If you share a bargain you found with a friend, is that selling? You probably do that already, you just don't get paid for it.

The part that scares me about your comment, is it sounds like you would invest only for the money it could make you. I would think the main reason would be for the product and the money would be a nice bonus.

I believe if the MLMer were selling a renewable consumed product and earning a decent first level commission on it with smaller commissions going to the upper levels, the distributor could still earn a lot of money and the exponential growth that would come closer to happening in the upper levels could indeed amount to a lot of money and residual income. The new recruit could then have some incentive to purchase and use the product, as well as to tell his neightbor(s) instead of sell(ing) to his neighbors. Otherwise, it, again, is just a "program looking for a product".

What's wrong with someone who just wants to use the product because it's good and likes the home delivery? Even if he never signs up a single customer or distributor, it still can meet his needs as long as it's not overpriced.

As long as you are getting some value back, that's not a bad position. You should at least be getting some help to make your investment pay off. Have you contacted your sponsor and asked?