One of the key differences is that traditional business
structure is designed to be fixed and stable while MLM structure
must be continuously expanding. One limits its triangle hierachy
while another must keep recruiting all the time.
The traditional structure seeks to be profitable through stability
in the company but MLM structure must keep growing to be profitable
and pay its distributor, yet it is this continuous need to grow
that makes it ultimately doom to fail.
Non MLM company that dont seek growth and expansion? An MLM
company that seek continual sales through expanding customers base,
not just distributors network. Your statement is quite flawed, and
I am sure its just your own personal feelings. 
Another very important difference is that in the traditional
business, it stands and speaks for you, gives you all sorts of
benefits and welfare, employs top lawyers and protects you when
anything goes wrong, in MLM, you sign the form before you join the
company where you clear the MLM company of all charges and release
it of all responsibilities should anything go wrong...make you
"independent".
You want the MLM company to get a lawyer to protect you? Wait long
long...
Wrong again. Customers sue the company and manufacturer if there
are products problem, So far, has any agent in SIngapore been sued
for selling faulty products? In cases of misrepresentation, any non
MLM company would protect their employees? Think again. While the
laws of agencies protect any contract in case of misrepresentation,
the next minute you would find the employee will be booted out of
the company for poor performance. Sad, but true.
In traditional business, the management and direct supervisors
can limit and control what the sales people do and say, the
internal business results is mostly stable and controlable,
problems can be managed, sales results can be tested and forcast,
etc... a steady brand and quality is slowly built over the
years.
In MLM structure, the MLM company has got no say over what the
distributors or salespeople do in reality.
Its obvious from this point you have never attend any training
or hardly observe and match training and sales presentation.
Back to the clause of "independence", since they have made you
independent, they don't know what the salespeople do outside or how
they do the recruitment and sell the products. The whole
organisational structure is built on high unpredictability, the
larger it expands, the more it becomes risky, uncontrollable and
unpredictable as time goes by.
So far, big companies like Amway and Nuskin have not shown this
problems.
Thats why you keep hearing of MLM companies opening and closing
now and then, opening up branches then closing down the old ones,
move from places to places, gets suddenly popular now in this month
and then in next month gets cursed like nothing by the public and
ex-distributors. This is a truth for an MLM company. (Check out
this whole MLM forum for example...)
The longer the MLM company has been around, the more the complains
and mistrust of the people. When the name is new, people don't
trust it well. When the MLM is an old one, people will have somehow
heard of increasing disatisfactions and complains with that MLM
company. The MLM companies are trapped in between this two opposing
sets of issues.
Its true though, but sounds like the kopitiam in sg always open
and close due ot low profitability. So, i should not venture into F
& B business?
Its not that I want to openly oppose your views, but it still does
not state why MLM fails. Period.
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