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 actually do not make money in the MLM program because they are not really pursuing the opportunity.
It is also true the vast majority of active distributors (those who actually make money) typically make no more than a few hundred dollars per month. There is a saying in the MLM industry that “95 percent of distributors fail or lose money.” This would not be viewed as a fair statement, unless one views, as worthless, the product/service purchased by distributors for personal or family use. Except for scam companies, this is not the case. Leading MLM companies are known for offering high quality products and desirable services.
What this related video: Why Do Distributors Join MLM Companies?
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