Let's talk about the lure of MLM programs. Too many people go into network marketing thinking "All I have to do is refer 2 people (or however many they think). Then I can just sit back and be a lazy-ass, and I'll make all this money as my downline grows!"

Great theory, but I've never actually seen this kind of fantasyland-type duplication happen in reality.

The dropout rate for MLM reps is an abysmal 60 - 90% in the first year. You can't build long-term residual income when almost everyone you recruit drops out!

Despite all the rah-rah conventions and glamour shots of beautiful people standing beside expensive cars in front of million dollar dream homes, the traditional MLM industry has failed to deliver on its promises to the majority of people it’s attracted.

Now, I know someone might read this and have the urge to write back and tell me about "one guy somewhere in some company that makes a boatload from his downline every month". But as I've alluded to, these scenarios are extremely rare.

Someone once told me, "I personally sponsored 1,700 people in the last 5 years" and then I come to find out that they're making like $2,300 per month or something like that... after working at it for 30+ hours per week for 5 full years. Holy crap!

Granted, even though there have been (and still are) a very small percentage of super successful people in the industry, most people don’t have a chance at making any real money in MLM these days.

It's not because they fear rejection, lack desire, confidence, or marketing experience, etc...

It's because the MLM business model is fundamentally flawed!

Let me share some uncensored facts to back up that claim...

• FACT #1: Most people who join will do NOTHING. They won't even use the products they purchase to qualify for commissions each month. They won't read books and they won't listen to mindset training to grow themselves personally (even if you give it to them for free). They never have the "time" because they're too busy doing, well... nothing. Only around 25% to 30% of people will do a little, but statistically, less than 10% will be committed.

• FACT #2: Recruiting, for most people, is about as enjoyable as a root canal... twice a week. They do NOT like to sell and recruit, or do not know HOW to sell and recruit. So, when newbies are told to make out a list of their friends and family, or buy leads and cold call them, only a small percentage will actually follow through. Most won’t even try.

• FACT #3: Only one third of one percent of all network marketers will make enough money to cover all of their expenses. The other 99.66% will lose money or, if they're lucky, break-even. Most of the money is gobbled up in overpriced products, promotional tools, books, baby-sitters, take-away meals and 100's of gallons of gas to attend all the local meetings, rallies and 'dog and pony' presentations.

• FACT #4: A typical MLM business puts enormous stress and pressures on marriages and other relationships. Some people become so "focused" on building their business that they lose sight of everything else in their life. The pressure to 'keep on keeping on' is intense and most people spin their wheels for years and years without ever getting ahead.

To sum it up, building a full-time income through the traditional MLM business model is like trying to constantly fill a leaky bucket.

And, what makes it even worse is that the massive failure rate reaches across all companies, all compensation plans and all products. Sure, most companies can point to the handful of "superstar" recruiters who have earned megabucks.

What they WON'T do is show you the list of the THOUSANDS of ordinary people who have SPENT and SPENT and SPENT, seldom earning even a dollar in commissions.

Another problem is that the industry has become 'infected' where every 6 - 12 months, tens of thousands of people ― called "MLM junkies" because they hop from program to program ― are herded like cattle and moved from one company to another.

And just when you think you've found a program you can call home and finally sink your teeth into... BAM... the vicious cycle starts all over, AGAIN.

Of course, some people may be fortunate enough to get ahead of the income curve for a little while if they have the money, time, and energy. But, it's only a matter of time before they’ll have to move again... and then again.

On top of that, the Internet has caused people to become obsessed with "getting in on the ground floor," "pre-launches," "the next big thing," and anything else that revolves around timing (aka, shiny object syndrome).

So, when something newer, bigger, better and easier comes along, people get distracted and jump ship, thinking that the grass is greener somewhere else.

The moment many new distributors feel frustration or feel failure, they open up to the endless supply of money-making alternatives filling their inboxes on a daily basis – and POOF, they're gone.

It's kinda like musical chairs... when the music stops, networkers scramble to find a seat in the next brand new pre-launch, robbing Peter to pay Paul and destroying their last business from the bottom up in the process.

It doesn't matter what MLM you join. You're going to face the same challenges I just mentioned above in ALL of them. Again, the traditional MLM industry itself has changed, and you're never going to find a single product or compensation plan that’ll fix it.

To really drive this point home, consider the following real-world scenario that I've seen play out many, many times...

Let's say that over time you've actually beaten the odds and built a fairly large MLM organization/downline that's paying you $10,000 a month or more.

As planned, you quit your job, maybe even took out a big mortgage on a new house, and bought that new car you've always dreamed of.

By all accounts, life is good.

Then one day, a new company comes out with a competing product, offering bigger commissions. They say they've combined all the other competing products into one single product so you don't have to work as hard (how fortunate for you).

As a loyal leader with your current company, you decide it's best to focus on your current business since you have a lot of time and money already invested. But news travels fast on the internet and one of your leaders decides the grass is greener. So he jumps ship and moves to the new company.

But the worst is yet to come...

Because not only is this leader no longer promoting YOUR primary business, but with one click of his mouse ― with a single email to his list, which includes your downline, upline and cross-line ― he destroys dozens of people’s businesses, cutting their checks in half, or worse, including yours.

Hmmmm, I guess that leaves the income you're relying on to pay for your new house, your new car, investing for your retirement and money you need to put your kids through school, literally at risk of evaporating overnight.

The fact is, you don't know what kind of long-term plans people in your downline have, and you don't know what they'll do next. Yet your commission checks are almost 100% dependent on them (and hundreds or thousands of others just like them). <== READ THIS AGAIN and let it really sink in.

Pretty sobering, isn't it?

Bottom line, you can't control what others will do, which means your monthly income is NOT secure.

And, if you're currently building a traditional MLM business and something like this hasn't happened to you yet, well, speaking from personal experience, it's just a matter of time before it DOES happen to you.

Maybe you've never thought critically about this before. Or, maybe the thought never even entered your mind in the first place.

But, wouldn't you agree that it’s better to know what you're getting yourself into before, rather than after you're already mentally, emotionally and financially invested in a business?

For better or worse, this is the current reality of the traditional MLM business model. You'll be forced to recruit every day for the life of your business just to combat the constant and never-ending attrition that will plague your organization.

The only way you can make money in a traditional MLM business is by either recruiting someone who buys product, or selling product to a customer that you have to find on your own (which is usually one in the same since most customers are, in reality, just distributors buying product (i.e. internal consumption).

And that leads us to the actual root of the problem...