home Calculators Online scam - why it multiplies. Network marketing: the job of the future or a scam MLM scam or a legitimate business

Online scam - why it multiplies. Network marketing: the job of the future or a scam MLM scam or a legitimate business

I know a large number of networkers from companies such as Tiens, NL, Amway, Oriflame, Coral Club, NSP and so on. Some of them succeeded more, some less.

And all these years I have been observing the migration of leaders. Moreover, the reasons for transitions from one company to another are completely different. Sometimes quite objective.

It took me a long time to find a decent option that suited me in all respects. These were many years of gaining experience and developing skills.

IN Lately I noticed one unpleasant trend - in most cases, networkers from a more or less normal company go to an outright online SCAM.

Organo Gold, Talk Fusion, Redex, Pride, Cashbery, WWPC, Airbit Club, Vilavi, Advant Travel, Kyani, Mercury, Zeus. There are a huge number of such schemes.

And once again I read on social networks “Friends. I left ... (any company can be substituted here) and will develop business with such and such a new company. I'm calling you to join the team. Hurry up to be in the first rows"

At this moment, I sadly understand that the online scam is thriving and there is one more scammer in the world.

Hidden financial pyramids grow like mushrooms, then they close and in their place new ones appear, with “an even more profitable offer.”

Distinguish a network pyramid from a normal one network company let alone a beginner, even an experienced networker is often unable to do this.

Do you know why your partners will go to online scam?

The answer to this question lies in the plane of values and goals.

So you personally, why are you interested in network business?

For example, my goal is quite specific - residual income.

I left one, then a second company precisely for the reason that they had NO residual income.

And not because I was looking for where to earn more and easier money.

For me, a company is a tool to achieve a goal. This is my partner with whom we have a mutually beneficial relationship.

If this is a banal network pyramid, it has no future. And I will never go into a dubious project. This is a principled position.

But many people answer the question “Why are they doing network marketing?” will answer that they are interested in the opportunity to earn a lot of money, Financial independence and freedom.

The key phrase is “a lot of money.” After all, these people are sure that financial independence is a consequence (can you already guess that they are wrong?).

So, when the only reason a distributor is in business is money, he will easily go to where he will be offered more (a network scam is famous for precisely what it offers at the start more money).

And then he will go to the next “new” company to become in the forefront in the hope of earning even more.

And you know, over time I came to a completely unexpected conclusion:

Network companies themselves cultivate a thirst for easy money in distributors.

The networkers themselves have elevated money to a cult. Their Instagrams today are full of photos of cool cars, wads of money with the slogan - “in a year it can be yours, come join my team...” or “last month my income was more than 10 thousand dollars. And this is for a year of active actions...”

Subsequently, the CULT OF MONEY was supported by the companies themselves.

Watch official videos and websites, speeches of leaders from the stage, read their posts on social networks - everyone is just talking about their checks, wealth, luxurious life. And that this can be achieved easily and quickly.

For example, here is the phrase with which a business proposal begins on the official website of one famous company on the CIS market:

Network companies have turned into hidden financial pyramids.

Day after day, newcomers absorb this “culture” of network building. And the thought settles in their heads - I want a lot of money and as quickly as possible.

Do you know what happens next?

According to statistics, 2-3% of distributors succeed in online scams. The rest only spend money on purchases, training and live in the belief that someday they will fall into this percentage of leaders.

But 97-98% will never get there. Time passes, but they still earn nothing. They follow the accounts of those very “successful” (or more often pseudo-successful) and wonder why they can’t do it?

And then the sentence “easier, faster, more” arrives.

The online scam is calling: “Dude, seize the moment, make money easily and simply! We don't have to sell. The physical product is a thing of the past. Now is the time for mobile services, cashbacks and cryptocurrencies. That's where the real wealth is."

Scammers always put pressure on two points - greed and ambition

Not only beginners fall for this bait, but also those who already have income-generating networks. Greed haunts them. The thought endlessly spins in my head that you can earn even more and faster there. And they rush headlong under the banners of the pyramids in the hope of gaining benefits.

So it turns out that networkers are DIGGING THEMSELVES A HOLE WITH THEIR OWN HANDS. Key people leave, the team is bursting at the seams, and turnover begins to melt before our eyes.

At the moment when I am writing this article, the most obvious examples are the companies NL and WWPC (still at the very beginning of their journey)

NL is a typical network pyramid. The main “product” of a company is not the product itself, but money. It is money and luxury life that attract people.

Do you notice the difference? The physical product exists, it may even be of good quality. But they sell mainly money and success, forming networks of distributors who are the end consumers.

As always happens, NL experienced a period of rapid growth in turnover due to the arrival of a large number of people from Instagram.

By attracting people to the idea of “earning a lot quickly”, cultivating the egregor of money and the cult of consumption of branded items, NL leaders themselves created a thirst among distributors for quick and big money.

No human values - only money, money, money...

A little time passes and the online scam enters a period of stagnation. Now fewer and fewer people are coming, trade turnover is falling. Leaders are starting to come up with new ways to motivate and squeeze more money out of existing distributors.

For example, closing the starting qualifications with your own money (purchase for 1-5 thousand dollars) and the fable “I quickly closed Zvezda thanks to well-coordinated work with my mentor.”

Constantly achieving the missing turnover to the required status, begging to help “comrades” and buy a product for their numbers and tede and tepe.

Those who came to NL during a period of stagnation will no longer be able to reach good income, the information field is burned out. And what are they doing? They go to another company where it will be easier and faster to earn money.

This option turned out to be new company WWPC (Win Win People Capital). Another online scam with a generally “air” product - a cashback service.

Why is this also a network pyramid? It's simple - the main income does not come from customers using the cashback service, as the company claims. The idea sounds cool - “save money on purchases and earn money from what others save.”

In reality, cashback is only a penny percentage of interest.Money is made from the entry fees of newbies.

I sold my Gold card for 34 euros and received a premium of 17 euros. Guess at once why they will most actively sell you the Prestige affiliate package for 1378 euros.

Now WWPC is experiencing rapid growth - enel workers have flocked there in the hope of catching the bird of luck by the tail. Plus, the idea is still untried and young people who are not experienced in online business easily subscribe to it.

Stock up on popcorn. In about 2-3 years, we will observe a period of extinction. Would-be businessmen will run in orderly ranks to the next online scam and begin to dump their “dirty laundry” for the public’s censure.

WHAT TO DO SO THAT YOUR PARTNERS DO NOT GO TO THE NETWORK SCAM?

First, decide on your own goals and values.

What is your goal - quick but short-term money or a stable business for many years?

This is not a comparison in the spirit of “good - bad”; an honest answer to the question will help determine the strategy of action.

If you want to build a stable business, then you need to figure out how a network scam differs from a normal network company.

A truly strong and stable business takes years to build. As you develop your skills and strengthen your character. Not in six months, not in 2-3 years, but at least 5-7 years.

Therefore, stop luring people into your organization with such phrases: we have the MOST lucrative marketing plan, the fastest income, the simplest working methods, etc. Such slogans attract weak, narrow-minded people who will immediately go to the online scam, where, in their opinion, the clearing is greener.

Start selecting partners for YOUR business idea, YOUR product and company. Invite into business those who have the right life principles.

Money is a consequence. They will come to you themselves in exchange for the value you create.

Secondly, you need to work on yourself and become for your people the kind of person they never want to part with.

A team is people united by similar values and goals. People who went through difficulties together experienced the joy of victories and the bitterness of failures. These are people who developed thanks to each other, and not in spite of each other.

And let those who go into another online scam leave with peace of mind. They just haven’t hit enough big shots yet, haven’t gained enough life experience. And they need this in order to draw their own conclusions.

Everyone has his own path. Just continue to follow your path, you will definitely meet fellow travelers.

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The controversy surrounding network marketing continues. MLM (multi-level marketing - multi-level sales) is one of the most controversial phenomena in Russia. The fraudulent 90s, the first pyramids and scams created a strong anti-reputation for network marketing in the eyes of the people. But in America and Europe, MLM is an alternative to “office slavery.”

“I hate these annoying, naughty types,” says driver Anatoly Knutov. – They pull in good people into your sectarian scam. I had a friend - a great guy! But then he started distributing goods from one of these international sharashkas. It seems that his wife dragged him into this disastrous business. And so they called themselves “independent entrepreneurs” and began to actively “build a business”: they put on badges, began to hold all sorts of “presentations” and “meetings” at home. We made new acquaintances, and for the first time these strange types spoke at these gatherings (you can’t call it anything else), drew their “ marketing plans" My wife and I attended such a meeting at their insistent invitation, but it was difficult to draw us in with promises of mountains of gold. True, I can’t say anything bad about the products that my wife purchased from them. We have been using dish soap for more than six months, my wife has stopped washing with gloves. But this whole system itself smacks of sectarianism. Members of this business sect speak in similar words, as if they were memorized or as if it were some kind of jargon. They are zombified at seminars and with the help of books and CDs that the company constantly distributes among its “herd.” In a conversation on any topic there is an example from “our business”. Their “Company” always has a solution to solve any of your problems: from lipstick and super-washing powder to vitamins! They dream of “gold”, “platinum” and “emerald” and other mineral titles accepted in their sect. So I almost stopped communicating with my friend - it’s disgusting. He cheats people out of money, sells them his goods...”

“My mother has been an Amway entrepreneur for several years and Mary Kay, says church employee and freelancer Maria Dimochkina. “I don’t see anything sectarian in this.” For my retired mother, being so busy is definitely a plus. Having retired, she doesn’t slack off in front of the TV, doesn’t count the years, doesn’t stand idle in clinics endlessly talking about health with other pensioners. She is not an old woman, but an active, confident woman with a regular income. Things are going well for her, and I see that she is interested in it, she is happy. In addition, she does not paint a fairy-tale glow around her little business and does not bother her with constant conversations about it - she quickly got over it. Mom found her niche - she specializes in vitamins and dietary supplements, consults, and gives presentations. I take these vitamins myself, especially when things get tough after strictly observing fasts. In general, this employment is better for a pensioner than endless TV series, shops or working as a night watchman. But when young people do this, full of strength, health, ambitions, opportunities for career and creative growth, for the future - I don’t understand! I don’t think this is the right job for them.”

However, network marketing is gaining new positions, and in our country there is already a direct sales market in which there are more and more young entrepreneurs. 30 year old Alexey Chulenko For more than five years now I have been an independent Amway entrepreneur, or IBO (as employees of this company call themselves). He is a programmer by training, but 90 percent of the time he worked in the office, he held positions in HR departments, including managers. “I’ve always loved working with people,” he says. – Helping them grow, consulting, assembling a team... Making money in network marketing was not immediately a priority for me. I was attracted by the freedom - no routine work, no office, you set your own schedule. And also an opportunity for growth: I wanted to learn how to work with people just as easily and productively.” Today Alexey leads several teams and occupies a certain level - his income without interest on sales is about 70 thousand rubles. At the same time, he has not worked anywhere in the usual sense for a long time, but is only involved in MLM. His wife Olga is a sculptor, but this is a hobby job that takes up part of the day; the rest of the time she helps her husband.

Alexey is the sponsor of the 22-year-old Vladimir Dulanov. Vladimir is graduating from an economics university and has been working at his university for four years. He and his common-law wife, also a student, devote the rest of their time to network marketing: purchasing and sales, meetings, seminars, presentations, and self-study. Vladimir has been in business for more than a year and has no plans to stop: his dream is not to depend on bosses. “I’m lucky that I’ve already experienced the boss’s tyranny,” says Volodya. “It’s not like that at Amway.” I was immediately attracted by the way IBOs communicate with each other - as equals, respectfully, and always help. We do not have superiors and subordinates, we are partners. My girlfriend is studying to become a specialist in restaurant business, but does not want to work like everyone else, to give so much of his time to someone - and I will contribute to this. We will work only for ourselves." Today, Vladimir’s income as an IBO ranges from 5 to 15 thousand rubles per month (total income from sales plus the financial incentive assigned to him by the company in connection with achieving a certain level).

These are the stories of residents of megacities with a population of millions. However, even in remote provinces, network marketing finds its fans. 26 year old Ekaterina Kabanchik was born and lived in a small regional center. I recently moved to Magnitogorsk with my child from my first marriage and my new husband. She has been in the Avon business for more than five years. Today Ekaterina is a major coordinator. “At home, I worked in a bank, I had a good salary for our place,” says the girl. – I raised my little son alone for several years, I had enough money, but I wanted more. I wanted to become a businesswoman, drive my own car, dress well... I can definitely say today that Avon changed my life. I went to all the seminars and trainings I could. I have already been awarded several times at annual ceremonies in Moscow, where I traveled at the company’s expense! When my income from network marketing began to reach my salary at work, I decided that it was time to leave and start developing a business in a larger city and improve my standard of living in general. At this time, my personal life improved. And I am sure that this also happened in no small part thanks to my work at Avon. I became more independent, more active, more confident. So don't be afraid network business! This is freedom in everything, this is powerful growth!”

Many MLM companies generously reward those employees who have achieved impressive results in attracting new team members. Buyers are attracted by the fact that they do not need to pay intermediary markups, which means they receive “ high quality at the manufacturer's price." The question arises: where does the money come from, Zin? This is explained by the same lack of intermediaries. So is direct sales really the same machine for fulfilling desires: happiness for everyone, no one leaves offended?...

“I realized that you can’t make money online,” the 33-year-old says about her MLM practice Natalia Sheptunova, who has been a Mary Kay consultant for almost three years. Even earlier, she worked as the head of sales departments of two companies. “I don’t regret my experience, but I’ll say for sure: I invested much more into this business than I received.” The only thing I still like there, although I don’t do it anymore, is all kinds of training (including personal growth) and master classes, often from famous and very successful personalities. For a company consultant, they are very inexpensive. And I think I got a lot of benefit from them. But I still think that this business is for a few, the rest in it are cash cows.”

Start working in MLM is easier simple, but growing in it is a difficult matter, as shown by thousands of failures of those who dared to try “easy” happiness. They say that in order to be a “networker”, you must have not only a number of certain qualities, but also impenetrable self-confidence. The main thing is that you should absolutely not give a damn about the attitude of others. “My friend has been trying to get me into Faberlic and Oriflame for several years,” says the 35-year-old manicurist at home Arina Stantsiv. – But it’s not my thing to strive to please people in order to force them to buy cosmetics. Tanya can sometimes be intrusive, to be honest, with her countless catalogues. But I use some means, especially since out of friendship she doesn’t charge a premium. I sometimes push clients on her for this,” he laughs. “But I wouldn’t sell it myself.” I don’t want the label stuck on my forehead: “business sectarian”, “saleswoman”, “crazy”, “from another pyramid”.

“At TIENS, I was once forced to purchase so-called business start kits,” recalls auditor Viktor Khorotinin. - Fool, I fell for promises. I sold it once with a profit - I was delighted and bought almost my entire salary of “goods”. I felt like a businessman. I went to their lectures and kept a notebook. I went to seminars where you have to constantly clap when they announce a new lucky guy or a well-known speaker in MLM circles. Where all the talk is about “our business”. They talk about other people as global losers, “slaves of their masters.” And some are not shy and say directly: suckers. These are measured by the number of permanent “suckers”, i.e., clients who buy all sorts of health crap. I realized in time that all these contributions, dreams of “golden levels” and mega percentages are a common scam for citizens. They took a fair amount of money and time – it’s still a pity. I threw out all this nonsense later, my wife gave the Chinese supplements to her friends for pennies... In general, this is not the case for a normal guy, it’s somehow unworthy to sell something that actually costs less and does not meet the recommendations. Women's fun, in short!

Typical Russian reviews about network marketing: contempt, distrust, wariness. “Business of housewives” is another popular nickname for an overseas business innovation. “The main plus and main minus of our business is its accessibility,” says Vladimir Dulanov. – There are a lot of strangers in it, unfortunately, and we can’t do anything about it, although they do a lot of harm to us, sober and honest IBOs who are committed to many years of work. I don’t believe that an obsessive comrade who wants to “shoe and make money” will achieve success in MLM. After all, this is a business built on human relations; one-time sales don't give much. And I believe: if the right person, the future “diamond” (the leader that every IBO is looking for for his team), told me “no” today, he will return. There have been cases: people called five years after the invitation! And finally we connected. We say: whoever should be in this business will be in it. The system will push out the rest; natural selection occurs on its own. This business will be the same as the person building it. Can those who accuse MLM of all sins be considered leaders without even having experienced what it is? And those who started, but were unable to build it, complain and tarnish our reputation. They blame the company for everything, not themselves - aren’t they failures to begin with?”

When we were young and were looking for where to earn some money. It so happened that we learned what network marketing is. Now I will reveal to you all its secrets. I must say that while I was preparing this article, I looked at the statistics of words in a search engine and it turned out that “network marketing” in various variations is searched by thousands, and “network marketing deception” is searched by a few. And then you wonder where their clients come from.

It all starts simply: a call from the manager, an invitation to register, receiving a symbolic gift for the visit, returning home in a state of euphoria from their future “millions.”

This is how the legend is born that you can get rich in no time, without investing anything and doing practically nothing. At the meeting, you will not be badly brainwashed by those who allegedly made millions by trading in some kind of Herbalife, super dishes, cosmetics, vacuum cleaners or dietary supplements. I still remember these noodles with Zepter dishes, it was fun to listen to them, considering that I have a technical education and I saw how it was all done. All these super-things, of course, cost a penny, but are presented as a unique product that has no analogues. And they will definitely perform in front of you in expensive fur coats and twirl the keys to an expensive car, with the words, I once started like you, and now you see...

So the network marketing pyramid

Fo
pyramid frame to designate dubious organizations whose activities are aimed at solving financial problems new clients, was not chosen by chance: at the top there is room for only one, that is, for the ideological leader and mastermind of a magnificent scam. Of course, they will tell you that you can find the same partners who will already be partners for you or referrals, and you will receive a percentage from them, and of course then you will also perform in a fur coat and turn the keys. After all, you will no longer be at the very bottom of the pyramid and your referrals will work for you.

The prospect of improving your financial situation without breaking a sweat and without working two shifts, it’s very tempting. The illusion of future success is the tip of the iceberg, and if you see only it, you can severely “injure yourself” on the stones hidden under the dark waters of the subtle psychological game of seasoned managers and the shine of advertising printing.

Most recruits take the bait of “unlimited opportunities”, which implies receiving dividends without having to invest their hard-earned money.

: an innocent hobby develops into the purchase of large volumes of products “for sale”, but no sale occurs, and no one accepts the goods back, and The goods will be given to you on credit.

And so it happens that the desire to put your percentage of a unit of goods in your pocket in the rhythm of a waltz turns into a necessity take out a loan to repay the loan.

The client, who is also a “partner”, will not have time to look back when the expiration date of the “super-product” has expired, and hopes for lightning-fast changes for the better have melted away.

But, alas, the wind of change is gradually beginning to feel like a garbage dump, and the financial collapse of an individual person is just a statistic in a merciless conveyor belt of deception.

Masterful deception

The opportunity to get everything promised by NLP masters and creators of the illusion of success immediately overshadows a person’s ability to reason sensibly.

The movement of financial funds occurs in accordance with the law of conservation of energy: nothing is taken from anywhere or goes anywhere, one type of energy is transformed into another and continues to exist in this form until a new transformation. In other words, without effort you cannot get a result: without investing knowledge, skills and labor into a business, it is impossible to receive a “bonus from fate” in the form of “golden mountains”, or at least “hills”. Managers' job is to captivate you, the more you buy, the better, first once, it went great, so next time you’ll buy even more. We found our partner in our pyramid, even better, two people are already working for top managers. Everything failed for you and you are left in debt? This is not a loss for the pyramid; the product has already been sold to you anyway. And for a large pyramid, you are just one of the fallen units in statistics. The more people there are in the pyramid, the more resilient it is.

It’s human nature to lie on the stove and dream of a comfortable life, but there aren’t enough stereo glasses.

The predominance of empty dreams over real actions to achieve the goal is what lets him down. It will not be possible to jump “from rags to riches”, and remaining in the red is a completely natural prospect with this approach.

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Greetings, friends! Today the whole truth about network marketing will be revealed to you. In this article we will talk about how important it is to tell the truth and why networkers deceive people. Namely, we will talk about truth as a quality of personality and why this quality will help us build a very serious and powerful organization in your network company.

Do you like being deceived? No one will argue with the fact that one must tell the truth. Definition of what truth is: It is something that really exists based on facts that can be verified.

I want to convey to you in this article that telling the truth in mlm business profitable. An honest name is created over the years, but when you are known as a person who never deceives, then you are not afraid of anything, not a crisis, not even the devil.

The main component of a personal brand is doing business honestly. Here's the whole truth about network marketing: if several people invite the same person into a business, then he will definitely go to someone who does not exaggerate anything and tells the truth.

It is easier for people to communicate with you if you are a sincere person. It feels intuitive. A business candidate sees that he is being lied to and he no longer wants to communicate with you at all. But if you speak truthfully, everything as it is, then communication will be easy and they will want to work with you.

If you want to make a person’s life better, then they will definitely notice and follow you. But if you want to cheat for money and are lying, then many details reveal your intention and it is useless to hide it.

People tend to lie, but why does this happen? People want to appear better in other people's eyes than they really are. It's like, for example, a frog that sees a heron begins to puff itself up to be bigger and scare it. The same thing happens with people. But we must understand that all lies are revealed sooner or later.

Then the one who lied becomes bad reputation and people stop believing him. And a businessman who is engaged in network marketing must have a reputation as a person who can be trusted.

Friends, let's look at what types of lies there are:

Providing false information
Failure to keep promises

People either don’t work with you if they notice that they are being deceived. Or they will notice it a little later and go out of business. Because they don’t want to lie and ruin their reputation.

Let's think that they usually lie when inviting you to MLM. The first thing is that they overestimate their income level. And the majority still have no income at all and they invent that they are already earning good money. For example, I have a friend who shows me SMS messages about replenishing his salary account and says that this is money from MLM.

The second thing they lie about in MLM is about the capabilities of their company’s product. Everyone has such miraculous products that, right by the wave of a magic wand, a person will look younger and be as healthy as a bull.

And the third most common lie when inviting you to MLM is promises that the whole team will help you, lead you by the hand, they will recruit your team for you. After you register, they will tell you to go to all the webinars and learn, we have no time to bother with you.

Here's the whole truth about network marketing. All the deception in MLM comes to light very quickly, people leave and then tell everyone that in MLM you have to lie, it’s a scam and a scam.

Friends, think carefully about what you have just read and draw conclusions for yourself. Start telling only the truth and create a personal brand for yourself as an honest person who conducts business without deception.

Network marketing– this is not a hoax, but this is the opinion that has developed about him in Russia. And now it will be very difficult to prove to people otherwise. Therefore, from today, start doing honest business. If you are afraid that they will not register with you, since no one registers with you anyway, what do you have to lose except the image of a liar?

What can I offer you specifically, what sequence of actions. Now immediately make yourself a personal blog and start helping people. This way you will make a name for yourself as an honest person and earn money. Then the whole truth about network marketing will not be scary to you.

You can learn how to make yourself a blog step by step from my section “”. Study articles in sequence from bottom to top. If you are not confident in your abilities, then order it from me. You will find contacts in the “” tab.

In this issue I will provide a strictly mathematical proof that MLM is a scam. Evidence will be given using the example of Amway. Brief information:
Amway was founded in 1959 by two young American entrepreneur- Rich DeVos and Jay Van Andel. The company's first brand was L.O.C. cleaning product. In 1978, the partners bought the Pantlind Hotel and began hotel business. Currently there is a chain of four-star hotels The Amway Grand Plaza. This business became known as Alticor in 2000. In 1999, the Van Andel and DeVos families founded the Internet site Quixtar, which offered assistance in organizing a business to everyone. Changes were made again in 2000, and the current company is Alticor and its subsidiaries - Access Business Group, Amway, Amway Grand Plaza Hotel and Quixtar. Trade marks: Nutrilite Vitamins, Artistry Skin Care, eSpring System, Magna Bloc, Therapeutic Magnets and SA8 Laundry System. The company owns The ARTISTRY Beauty Institute (Michigan, USA), where it produces cosmetics for salons and spas.
Now let’s build a mathematical model (what is a mathematical model, see http://easyprog.ru/index.php?option=com_content&task=view&id=2412&Itemid=55) of MLM business (using Amway as an example). So, Amway promises a markup of 30% to the end buyer. Based on this, we build a mathematical model. To simplify, we will accept the following assumptions (in favor of business):
We believe that no taxes are paid in principle.
We consider overhead and transportation costs to be zero.
We believe that 23% of the volume of sales to the final buyer (retail margin) remains with the seller-IP.
We believe that another 30% of the turnover is distributed among the entire garland of higher-level sponsors (along the sponsorship line) in a 70/30 ratio, that is, 70% remains at the very level (starting from the second), and 30% goes up the sponsorship line. Then each superior (starting from the third level) will have 0.7 * 0.3 = 0.21. That is, we believe that the superior (starting from the third level) retains 21% of what the inferiors earned.
The distributor sells all the products, keeping nothing for himself.
The average person spends $50 a month on cosmetics, perfumes and household chemicals. Let's say he only uses Amway products and spends all this $50 on it.
The distributor wants to have an income of at least $300 per month.

Based on these assumptions, in order for an upline distributor to receive the same amount as a downline distributor, he must have at least 5 (1/0.21 = 4.8) downline distributors. So we have the basis of our geometric progression, this is the “expansion coefficient of the pyramid”. To earn the desired income, the distributor must sell at least $1,300. In order to make such revenue, he must sell the product to at least 26 customers (1300/50=26).