No..the Internet did not kill the MLM business model. The MLM business model started dying years before the Internet became a viable sales, marketing and business building tool. What happened to so many MLM companies is that thousands of people in these business organizations stopped sponsoring and started recruiting. (See: How To Recruit & Sponsor Effectively)
Sponsoring is not recruiting and recruiting is not sponsoring.
Yet, so many well meaning people fail to comprehend the differences between these two activities. Effective sponsoring is no more or less than successfully connecting with people emotionally and intellectually, and in some cases spiritually.
Accepting the responsibility for another human being is a solemn obligation that should not be taken lightly. Recruiting is basically finding bodies to fill quotas. The language of networkers that are trying to build an organization by recruiting is: "You get 5, and they get 5, and so on down the line." The language of a sponsor is entirely different. When a sponsor speaks, it is always what we are going to do and what we are going to accomplish. We are going to work together. My income is dependent on how well I fulfill my obligation to you.
Therefore, your role and function is not only to help the person you sponsored increase his/her income, you must also teach that person how to accept responsibility for someone else. Hence, you must teach John how to sponsor Bill, so Bill can teach Edgar how to sponsor or accept responsibility for Sally. This is the traditional MLM business model and it has not changed in 50 years.
When you decide to join a commercial enterprise or organization that requires sponsoring others in order to grow, 99% of the support these people will receive will come from you. The remaining 1% comes from the company, organization or your upline.
When you join a commercial enterprise or organization that requires recruiting, 0%, or none of the support these people receive comes from you. Once an individual has been recruited, your role and function is over. All the support an individual will.., or will not receive.. comes from the organization or commercial enterprise.
Every Home Based Business that has a user based product or service; whereby, the product must be consumed or used in order to earn income, and growth is realized by developing a distributor network, is a sponsor oriented commercial venture. To succeed in this particular business format will require sponsoring, not recruiting.
Networking organizations could create and perpetuate the myth of no personal contact, no calls, no selling and a 365/24/7 sponsoring machine. This has not happened nor will it ever happen. As long as there are user based products and services that require consumption in order to earn income and a distributor organization must be built in order to maximize earnings, the traditional MLM model is the best way to accomplish these twin objectives and build this type of organizational structure.
This is a fact of business and sales and marketing that every would be networker or mlmer needs to understand. In 6,000 years of recorded history no lazy, cowardly, fainted hearted, timid, or fearful person has ever amassed great wealth or ever had any great accomplishment and utilizing the Internet as a networking tool will not alter this actuality.
To those men and women that understand sponsoring and the power of sponsoring to build networks and dramatically increase income, the traditional MLM business model is alive and well. Additional information can be found at: (Your Effective Sales, Sponsoring & Recruiting Market)