Friday, April 22nd, 2016

Multi-Level Marketing

by Rahimah Sultan


photo from blog


Multi-level marketing companies are legal although structured almost exactly like a pyramid scheme. A pyramid scheme is a non-sustainable business that involves the exchange of money, usually in the form of a sign-up fee, and usually has no product or service.


Some major indicators of a pyramid scheme in multi-level marketing are:


1) Focus on recruitment of new people rather than product sales
2) Claims of making money through growing a downline rather than your own product sales
3) Asking distributors to purchase expensive inventory
4) Asking you to sign a contract or pay money before you have time to read all of the paperwork
5) Products that may serve as a cover for recruitment


The ongoing debate is whether these companies and programs are legitimate business opportunities.




For an in-depth review of multilevel marketing, read


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Category: MLM
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