Having previously worked in IT for a medium-sized MLM, I can tell you that at least some of our distributors were getting relatively rich off of it. We cut at least ten or fifteen checks for more than 10k each month, the top usually being around $25k.

If you invest the effort, you can make it with an MLM. Of course, there are much better and/or easier ways, but I don't think that it's fair to call all MLMs "slimers". Most of our distributors signed up because they loved the product and it gave them a network to socialize about it with. They generally made enough money to purchase the products they'd be purchasing anyway and have a few bucks left over. I don't see the problem in this, really, as long as your company is up-front about it and focuses on the products and not the "get rich quick" stuff.

It's a great way for the entrepeneur to get rich, though. Works really well from what I've seen.

You're focusing on the exception; I'm focusing on the rule. Sure I believe you but the vast majority (Amway, Cutco, Quixtar, Herbalife, et al) are the ones that are full of slime, false promises & proliferate themselves every where. There's a huge difference between being an MLM and being an affiliate. The former you're forced to sell to friends and family, the latter you are not.

I think the problem with MLMs is that it's ugly.

People react to that. There are plenty of classes of ventures that have a similar failure rate or even a similar number of unethical practices up top, but when you et down to it, it's largely the aesthetics.

"Read about your business every day (i.e. become the smartest guy in the room)"

Wouldn't that make you the most knowledgeable guy in the room? (of course knowledge and intelligence complement each other very well)