I am going to make you go read it yourself, but I will give you a few little teases.
As is the case in many businesses, both traditional and MLM, the marketing arm was making the bulk of the profits.
The early successes of network marketing also led to other imitators who realised there were other ways to profit from the model.
For some, the seductively dark side of multi level marketing proved to be the quick and easy way to making fast, and less than legal, profits.
Alright, thats it. Now you have to go check it out for yourself. It really is a good read. This will basically walk you through a (very) brief history of how Multi Level Marketing got started and how it became what it is today.
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Multi Level Marketing - A Short Autobiography