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GEOMETRIC PROGRESSIONS & MLM RECRUITING
Definition: A geometric progression is a sequence, such as the numbers 1, 3, 9, 27, 81, in which each figure is multiplied by the same factor (in this case 3), in order to obtain the following figure. In MLM, the end result of your geometric progression is the SUM of all the figures from all levels (in this simple example, 1, 3, 9, 27, 81, for instance, you would have 121 people in your group to your 4th line).
A Demonstration of the Ideal MLM Recruiting Situation:
In an ideal situation, if you were to choose a factor of 6, e.g., if you want to find 6 recruits and you want everyone else in your downline to find 6 recruits each in their turn, your progressive downline recruiting figures would look like this:
| Level |
Factor of 6 |
Progression |
Total Group Members |
| You |
|
1 |
1 |
| 1st Line |
6 x 1 |
6 |
7 |
| 2nd Line |
6 x 6 |
36 |
43 |
| 3rd Line |
6 x 36 |
216 |
259 |
| 4th Line |
6 x 216 |
1,296 |
1,555 |
| 5th Line |
6 x 1,296 |
7,776 |
9,331 |
| 6th Line |
6 x 7,776 |
46,656 |
55,987 |
| 7th Line |
6 x 46,656 |
279,936 |
335,923 |
| 8th Line |
6 x 279,936 |
1,679,616 |
2,015,539 |
| 9th Line |
6 x 1,679,616 |
10,077,696 |
12,093,235 |
| 10th Line |
6 x 10,077,696 |
60,466,176 |
72,559,411 |
| 11th Line |
6 x 60,466,176 |
362,797,056 |
435,356,467 |
| 12th Line |
6 x 362,797,056 |
2,176,782,336 |
2,612,138,803 |
| 13th Line |
6 x 2,176,782,336 |
13,060,694,016 |
15,672,832,819 |
Note: The population of the world is just over 6,700,000,000.
As indicated, somewhere between your 12th and 13th downline levels, your recruiting effort would involve every human being on the planet. These figures demonstrate exactly what the MLM recruiting promise result should be in an ideal MLM world.
Pro-MLM-er's will point to the absurdity of this and say, "Ludicrous! Plain stupid! Can't happen!" And they are right. No-one has ever achieved the desired result, because it IS impossible for many, many reasons.
Yet the use of geometric progressions in the image of the above example are a common basis for MLM recruiting programs. More importantly, the geometric progression recruiting model is the basis for all MLM promises of great wealth.
And there is the conundrum. The promise of MLM is that the recruiting scheme (when "properly" implemented) will result in great wealth for the successful recruiter. At the same time it will deny that the recruiting scheme can ever be taken to its natural, logical, mathematical conclusion. MLM operates then, somewhere below the promise of the perfect application of its geometric progression based recruiting scheme. The ramifications of this are difficult to visualise or comprehend and no MLM company will explain them to you, but rest assured, they are not good.
An MLM recruiting progression is NOT just a static set of figures as represented above. The structure of most downlines does not look anything like this neat example. Over time, it is a dynamically evolving and continually mutating morass of people. In a downline of say, 50,000 people, the gaps left by perhaps 500,000 people who have come and gone over the years, corrupts the structure completely. Of course, the huge problem for a new distributor is that he or she will never know exactly where they are positioned in the progression, or how large the progression has been in the past, is at the moment, or will be in the future. This prevents any recruit from properly evaluating their potential for success.
It should be clearly understood that instead of being a logical, unlimited growth entity, as represented by the usual MLM presentation, an MLM recruiting geometric progression is self-limiting in its population growth by design. The simple fact is that without the failure of many, MLM cannot continue to exist. Yes, it is possible for a select few to have a 50,000 person downline, though the collective cost (loss), to the hundreds of thousands of individual "failures" who contributed to its creation over time is an astronomical figure. It is not possible though, for everyone to have a 50,000 person downline. This is the case even if equally gifted people were to be given the same opportunity at the same time.
In the passage of just one day, a global MLM can massively mutate, with the loss of thousands of members and the gain of thousands of new recruits. Because of this, it cannot possibly offer the same opportunity to any new recruit that it offered to others the day before. The market has changed. There are now that many more disaffected ex-distributors and fewer available recruits. Fortunately for MLM, adventurous young people do grow up. They make excellent fodder for MLM recruiters.
The people at the top still get paid for the purchases and the recruiting efforts of all of those who remain signed up and active beneath them. The company, of course, profits from ALL sales to every recruit and from all retail sales at all times.
In the real world, company growth can only occur when market demand for product rises. In the MLM world, growth is achieved by inducing people to purchase "qualifying" product sales in order to allow them the right to get paid for recruiting others. After initial growth, the ACTUAL number of successful distributors remains relatively static while new people are sucked in and spat out in an almost continuous and equal stream. Market saturation denies any success to the great majority of these new people. Growth in MLM is based on distributor "churning". For supporting data have a glance at the world wide figures.
How does a geometric progression based Multilevel Marketing recruiting scheme really work?
For an excellent practical analysis of an MLM geometric progression showing where the dollars go in a "typical" MLM remuneration set up, click here
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