I'm listening to the other video about how it works.
I know that any multi-level marketing cannot exist with more than 3 levels deep, (that's a fact). however, it can go for a long time before folding, maybe 1 or 2 years. You are correct, the MLM's operate the same way - they eventually dissolve because it is impossible to bring in enough people to feed the lowest levels after time. Soon the lowest level drops out because of no income, and that starts to domino upwards and the owners, grab the folks who follow him, (his downline) and brings them into a new MLM. that is how it works.