>Back to the topic of MLM: From what I have read on multi-level marketing, it seems that MLM may very well be a legitimate business, but it is quite often not more than a pyramid scheme in disguise. Somewhere I read something more or less like: A criterion for the end user is whether the main focus is on recruiting new members, or on actually selling the products. Also, what percentage of the clients are, themselves, resellers. You can't have a sustainable business if, say, more than half of the clients become "salespeople" themselves.

Exactly so. The concept is valid but frequently the implementation is not. As far as the hype goes, compare it to the "make millions in real estate without investing any money" infomercials. SOME people actually DO make lots of money -- and some people win lotteries. But I think more people drive Pink Cadillacs than either.

In all cases, nobody makes any money if no product is sold. For companies with viable products and reasonable buy-back policies (Mary Kay is only one where I can speak from first hand experience) I think MLM is a very reasonable marketing tool. Indeed, I know people who are registered as sales agents simply so they can get product for their own use at cost. Anything they might sell to others is gravey. It's companies that require large initial inventories, large continuing purchases, and won't buy it back that cause the bad reputation MLM has.

(BTW - my defense of MLM is based on a small amount of prior experience and the investigation I did a long time ago. I'm not now, nor do I ever expect to be, involved with MLM)