Reason #3: Lack of Company Integrity
This is the worst of the reasons for failure in MLM because it is often intentionally done.
Many people have built large organizations just to see it all disappear almost overnight. With a single clause in the distributor contract, the company can terminate you for any or no reason.
That is bad enough, but there are other ways companies do shady deals. One what I like to refer to as the "no company" scam. A supposed new company with a much hyped pre-launch will offer incentives to join before the launch date. These people never intend to actually run a company; they only want the list of people who signed up so they can sell it to a leads company.
There is big money to be made from this. If you have read my post on why buying leads is a scam, I talked about this in more detail.
Suffice it to say, if your company has an ethics issue, it could seriously impact your business.If a company has to tell you they have integrity, then they likely do not.
I've said it before, and will many times again. Do your HOMEWORK and investigate any company you are considering prior to joining.