Trickle Up Economics Explained

So now you're going to go buy $1,000 worth of product from distributor A This MLM. And for those of you guys who don't know, it's multi-level marketing effectively. And I hope I'm not offending anybody involved in multi-level marketing, but many people do believe that it is very similar to a Ponzi scheme. Because the people at the top of the pyramid, make money, every time product is sold down the line.

So you're at the top of the line, you're whatever their top sales guy, you have to bring in a certain number of other salespeople under you. And these could be your cousin, your Uncle Joe, your aunt Susie, and then they bring people in under them. And so you make money at the top. And all these people are required to sell and buy a bunch of products from you and everybody up the line. And that's how it works. It's kind of like this trickle-up economics.