How to spot the difference between a pyramid scheme and MLM

📆 2021/10/17 18:55:00
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While some of these companies are legitimate, there are people out there that will do whatever it takes to take advantage of those who need to put food on the table.

At first, it may be difficult to tell a pyramid scheme from an multi-level marketing . After all, both have business models that rely on multiple levels of distributors and recruits.A pyramid scheme is a fraudulent system of making money by recruiting an ever-increasing number of so-called ’investors’. The initial promoters recruit investors, who in turn recruit more investors – and so it goes on.

MLM recruits can make a profit from selling the company’s products as well as recruiting sales people below them. Don’t sign up if the company doesn't seem to have any interest in consumer demand for its products. Multilevel marketing depends on establishing a market for the company’s products.

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