Many network marketers will opt to focus on the ‘team recruitment model,’ aiming to build a downline network of distributors who are also customers because it deceivingly appears to be more appealing, easier to navigate and the path of least resistance.

So, let’s dive in and explore this approach further to see if this is really true.

The idea behind it is that recruiting distributors who also use the product or service creates an automated customer retention strategy. As the thinking goes: “If my downline can enjoy the product or service and have a financial incentive to stick around and keep purchasing, they’ll build their own downline following the same pattern, and everyone benefits.”

ooooh… now we’re talkin’…

Sounds like a promising path to quickly be rolling in the dough, right?

… right?… Right?… RIGHT?”

Hmmm…

The ethical implications of promoting such a model are also concerning because this model is often labelled as what some critics have termed as an unsustainable Product-Based Pyramid Scheme.

While it’s technically legal due to a legal ruling dating back to 1979 (involving Amway and the FTC), the definition of a viable and legal MLM/NWM venture encompasses specific criteria:

1. Distributors are not compensated directly for recruiting.
2. The model does not involve inventory loading.
3. Distributors have a reasonable number of genuine retail customers who are not part of the business opportunity.

If the third condition were strictly enforced, it would make a network marketing venture very challenging to operate and practically impossible to generate a sustainable income.

Thus, you could argue that recruiting will remain a fundamental aspect of network marketing because, in most cases, few network marketers have genuine retail customers who aren’t involved in the business. This leads to a common theme perpetuated in NWM training and coaching circles: “If you want to get paid more, recruit more.“

Unfortunately, this situation has given rise to a horde of self-proclaimed experts who target struggling network marketers and promote the recruitment concept without regard for its effectiveness. They encourage what could be considered an unsustainable model where the numbers don’t add up, leading to even more challenges within the industry.

Adding to the issue, many network marketing companies incentivize recruitment through internal competitions like “Recruiting Blitzes.” Active distributors are encouraged to recruit as many new distributors as possible over a certain period, often with special deals, discounted joining fees, or one-off recruitment bonuses. While these incentives provide a cash injection for the company, they leave the task of retaining and training new recruits to the distributors. This is no small feat and requires exceptional management skills within a demanding industry.

It may seem contradictory that network marketing companies promote the very practices that could harm their credibility. However, not everyone succeeds in network marketing. While some people thrive in this environment, many struggle, as evidenced by the numbers.

This leads to another issue: the recruitment-focused “team builders” who suggest, “Just go out and get your first 5 distributors, and you’ll be on your way!”

This may sound like an easy and straightforward mission, but in reality, very few people can accomplish this “easy and simple” task. The recurring pattern is one of stagnation and difficulty moving forward.

Are we now starting to see the recurring pattern and constant cycle of getting nowhere fast?

The fact is many of these recruitment-focused models support a broken, unsustainable structure. They often rely on a model where you recruit a specific number of people, who in turn recruit the same number of people, and so on. The problem is that this model doesn’t take long to exceed the entire world’s population

As I’ve mentioned previously and I’ll say it again… it doesn’t matter whether your system is shaped like a pyramid, a ‘dimaryp’ (yeah… some of you know what I’m talking about), a circle, a square, a rectangle or a trapezoid… these models contain the same flaw due to the challenges of compounding duplication and exponential growth.

So, the takeaway is that while recruiting is undoubtedly a crucial part of network marketing, a narrow focus on recruitment alone is not really a sustainable strategy for building a successful network marketing business.