>>I would disagree with calling multi-level marketing a fraud. With companies like Mary-Kay, Amway, Tupperware, etc. there are actually many people making money by selling the product. I will grant that there is a over-hype in getting people involved but the bottom line is that the bottom line actually moves the product (My wife used Mary-Kay and my mother loved Amway cleaners)
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>But remember to compare against all those who have their garages filled to overflowing with Amway products they can't get rid of. Yes, many people make money, but very few (relatively) make anything like what their expectations were when they joined. Those expectations are fed by hype, and hype rarely seems to deliver what it promises.

Exactly - and that's the effect of attempting anything exponentially growing upon a limited population. One runs out of candidates in finite time. If your handler can't (or won't) tell you how many sellers already operate in your area, it's already too late to join in. The area was raked already.

While multi-level schemes do make money, they don't necessarily make it all off the end customers. They get a lot from wannabe sellers, who have free space in their garages. The guys who do get a lot of cash are the ones on higher levels of the pyramid.