Semantics play a role here. For instance, what is the meaning of failure? Does it refer to distributors who do not make substantial enough money, or who don’t make any money, or who lose money?
Because most leading companies offer terminating distributors a 100% or 90% buy back policy for inventory and mandatory sales materials (a full refund of your startup kit, e.g.), the risk of actually losing money is drastically diminished.
Many leading companies offer earnings disclosures that indicate the level of earnings of distributors. It is true that many distributors merely join to become discount buyers. And Continue reading