MLM defenders argue that network firms skip retail logistics and mass advertising, so they can pay “word-of-mouth” consultants and still beat shop prices. Critics answer with a simpler ledger: every tier of recruits needs a cut, so the jar of powder or gadget must carry a fat margin before anyone at the bottom earns a grocery voucher.
Both logistics and recruitment cost money. The difference is who pays. In a shop model, marketing is a company line item. In a heavy MLM model, distributors buy starter kits, sample stacks and monthly autoships — inventory risk pushed outward. If the goods rarely sell to people outside the plan at full catalogue price, the “saving on ads” story collapses into a money-transfer between hopeful partners.
Test any pitch with two questions: what share of revenue is end-customer product sales, and can you return unsold kits without drama? If the honest answer is recruitment, the price tag is not a mystery.
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