Top 9 Lies Used To Defend MLM Scams 5
5. MLM is an entrepreneurial journey. It has the same rate of failure as any other business.
MLM has a 60-90 percent failure rate in the first year for new representatives.
In the 2004 10-K, Herbalife disclosed: “For the latest twelve month re-qualification period ending January 2005, approximately 60 percent of our supervisors did not re-qualify and more than 90% of our distributors that are not supervisors turned over.”
36% of new businesses fail in two years. – Statisticbrain.com
38.8 – 45.1% new businesses fail in 4 years. – U.S. Bureau of Labor Statistics
51.2% new businesses fail in 5 years – U.S. Census Data
The truth is MLMs have a much higher failure rate than traditional new businesses. 90% fail in the first 1-2 years in a MLM. 36% of new traditional businesses fail in two years.