I can garantee you that the people who succeed at the top would like for people at the bottom to be better and earn more because that makes THEM earn even more.
This is true and I agree. Doesn't change the fact that the fundamental math of MLMs requires a high majority to fail.
it's not true that there has to be people failing in order for a few to succeed on the contrary they would earn even more if the rest of the people were better.
This is simply not true. Try imagining an MLM where everyone is succeeding. Now think about the people in that MLM who are at the bottom few levels. Oh, wait! We have a contradiction! The people at the bottom few levels (read: a majority of distributors) cannot possibly be succeeding until they recruit enough people. Then they'll be successful! Only now there are even more people under them who aren't succeeding. This is why it's called a pyramid. The success/failure rate is relatively fixed, no matter what happens.
You make it sound like a conspiracy.
Not a conspiracy at all. Just a business with a mathematical framework that is great for a few, awful for the vast majority.
They keep on trying because it has nothing to do with chances. it's about performance.
Let me be clear; there's nothing inherently wrong with the low chances of success in MLM. What's wrong with MLM is why your chances are so low. It's built in mathematically. Many people simply find it unethical to operate a business in which most participants end up financially hurt (which, assuming you're making less than minimum wage, you are, due to opportunity cost). Imagine an MLM where everyones' performance was literally perfect. The vast majority would still fail because success is based primarily on recruitment and you always mathematically have those bottom few levels who are losing, even though they're doing everything right.
If you can't recruit enough people, if you don't have enough customers, if you can't create team spirit etc... is that the fault of the mlm business or is that your fault?
It's primarily the mathematical framework of the business, sorry if you don't like the answer. Let me put it like this: How do we know that certain things are wrong or bad? How do we know that murder is bad. We can't objectively say that murder is 100% wrong. All we can do is look at the results of murder. Humans have typically decided that, hey, we don't like being murdered, it's painful and we lose people we love. Thus, murder becomes 'wrong' in the eyes of people. Similarly, no one can say MLM is 100% objectively immoral or wrong - BUT we can look at the results. If you want to find the business model that is bad business for virtually all of it's participants - look no further than MLM. Just about every other legal business is polar opposite - good for most participants.
It really boils down to a few questions for me. Is the MLM business harmful or beneficial to people in general? The evidence that I've seen points to it being harmful, so IMO MLM is generally harmful or bad. Very simple logic. I can also ask "Would I feel morally justified starting an MLM knowing ahead of time that for every person that my business is going to make better off, it's going to make multiple others worse off (through opportunity cost/wasted time/actual financial loss)? No, I would not feel morally justified. I find it unethical.
Sorry for the long post, I have family members in an MLM and one family member who has been in different MLMs for decades now. I won't post anymore, I feel like I've gotten my position across well enough. Have a good one.