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Is Multi Level Marketing a Pyramid Scheme?

Started by Cristina Favreau · 10 months ago

Continuing our discussion on multi level marketing (MLM), I will attempt to answer one of the most common questions that come up  — Are all MLMs pyramid schemes?
The quick answer to this is no. MLM and pyramid schemes are 2 different business models. One is definitely ille ... Continue reading »

7 comments

  • Lara, The Data Digger

    1 year ago

    I would also like to add to the discussion here that "just because 'everyone' else belongs" to a program structured as an illegal MLM, does not make it legitimate.
    Remember, there was a time in history, in the 3rd century BC, when "everyone" thought the earth was flat. http://www.theflatearthsociety.org/
    reply
  • Cristina Favreau

    1 year ago

    HAHA!! Good point, Lara!
    reply
  • Amy Robinson

    1 year ago

    This is great information - and as Cristina mentioned, she has only scratched the surface. Another excellent resource that she did not mention in her list is the Direct Selling Association - www.directselling411.com. You can find a list of more than 200 companies that are required to abide by the Association's Code of Ethics. This Code provides safeguards for both sellers and consumers of the product - if you do business with one of these companies you know you have the protection of the Code working for you. The Code is administered by an Independent Code Administrator. It works proactively and reactively - companies know they must comply with these standards, but if there's ever a problem, you have recourse.

    It is critical to carefully research any company before you join - DSA member or not. Make sure you fully understand the company, how the compensation plan works and what you'll have to do to achieve your goals.
    reply
  • Cristina Favreau

    1 year ago

    Thanks for sharing this resource, Amy and for your explanation.
    reply
  • erikko

    1 year ago

    they are legal, what makes it illegal is the people who are doing illegal or fooling others
    reply
  • mlm home business

    7 months ago

    "Is MLM a pyramid scheme" is like asking "Do athletes wear Nike products."

    Some are , some aren't. Just like in any business, there are some bad apples. You have to do your due diligence and know what you're getting into. Look for companies that have been around for several years, have a track record of success, and are members of the BBB.
    reply
  • mlm lead generation

    5 months ago

    You have nicely differentiate between legal and illegal, on the matter of making money online.
    Thank You
    reply

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