I was in a couple of different MLMs starting around 1989 though around 2005. In my opinion, the idea of MLM/Network Marketing stopped being viable once the Internet really took off. In my case with the last company I was in (starting around 1993) my efforts were really starting to take off, then they leveled off and began dying around 1997-98. Right as the web was really becoming a force for information and communication.

I think that MLM/Network Marketing once had its place in business. Trying to get a new customer was the hardest and most expensive part of running any company. MLM admittedly did put those costs on the backs of the people who were in their MLM arm. But often times personal word-of-mouth was the most effective way to get people to sample your products, and for those people who were good at it, MLM was financially rewarding.

People's sphere of information was limited too. So often they never heard of the company, products or services, and were willing to try it.

Along came the Internet. And now people could do their own research without sampling the product. And they could find out all they needed to know without going through the MLM rep.

It was also harder to get new people recruited. Before if someone didn't hear of a company, and none of their friends did as well, then they could be convinced to sign up. Now they go on the web, do a Google search and find 50,000 other independent reps all having the same corporate-sponsored web site. Where's the incentive to join?

Unfortunately, technology now allows scam artists to join the industry. In the past you had to have a serious brick & mortar business with real products and mainframe computers to track everything to get into MLM. Now anyone can easily form an MLM company with the idea of cashing in quick and then folding the company. They just form it, then go looking for any half-assed product to sell. So unfortunately you really have to be more careful with the companies in the industry now than you used. (Admittedly Amway is one of the long time players)

One last thing ... here's a hint as to whether an MLM's products are overpriced. You see, any successful MLM really needs an avenue for people to sell to the retail market, without simply having the reps buy for themselves. "Be your own best customer" is really a red flag for the FTC.

Any company has fixed costs: costs of manufacturing, real estate, taxes, corp payroll. Those costs are fixed and are not dependent upon the retail costs of their products. Those costs are taken off the top, and the remaining money is passed back to the reps as commissions and bonuses.

If the product is fairly priced, then the company costs should be around 1/3 of the money taken in. Therefore, a good company will pay back around 60-70% to the reps.

But watch out for companies that brag about the huge payouts they make. If they exceed the 70% above, that means the product is severely overpriced. And the only customers will be the reps themselves. And that MLM will soon crash.

I'll give you an actual example. Beverly Hills International back in 1994. They sold high-end shampoos and conditioners, and bragged about an 85% payback to their reps. 85%!!!! How and why? Well, think back to what goods were selling for nearly twenty years ago. BHI were selling their shampoos and conditions for $24 per bottle!!!

The company died within a year.