MLM Directory

The Difference Between Pyramid Schemes and Multi-level Marketing?

I get 1 couple thousand and more a day emails.....Because I tried my hand at trying to make a buck on the internet.Well it didnt work for me,it just wasted many hours of time.My question? They say pyramid schemes are illegal?But do you ever really pay attention to all these so called great programs? They all seem to be based on pyramid schemes,even though they are toned down a bit.What do you think?

Public Comments

1. NOne at ALL
2. Not sure where you're from but here in Australia, a pyramid scheme differs from a MLM in that with a pyramid scheme, you can buy in at the top level. With MLM you start at the bottom and work your way up through sales and spomsorship. That's it in a nutshell.
3. Pyramid schemes are definitely illegal because they typically only involve the movement of money and not products or services. You will also see companies that will introduce a product to the marketplace that will be typically overpriced, again, to hopefully add some legitimacy to a pyramid scheme. The main issue here is to know that there are legal and legitimate multi-level companies out there, but you must choose carefully. The emphasis must be placed on the sale of products and services and not on being compensated for recruiting others. The multi-level business, at best is a tough business, even though it can be very lucrative. Simply stated, you must be willing to talk and present your business to 100 people to get on average, 2, to go to work in your business. It's a never-ending cycle. If you are willing to do this over and over again, you can be successful in this arena. The best businesses I've seen are those that can be worked as a conventional, traditional business that have a networking structure attached to it. The public seems to better accept this type of business. More information regarding legalities can be found at mlmlaw.com. I hope this helps.
4. No matter where you live the most common legal pyramid is your government or any large corporation. Pyramid schemes are illegal in most countries. There is also great difference between multi level marketing and network marketing, and not just in pay plans alone. Basically, if you are getting paid for sponsoring others to the business, stay away. Very simple evaluation of Network Marketing company I use in my business coaching is: 7 stars enterprise --- 1*******the right reusable product not available in stores directly shipped to your customers; 2******the right timing; 3*****the right management with your own successful mentor; 4****the company being at least 3 to 5 years in business; 5***the right compensation plan; 6**the right cause and mission; and 7*the company must not be publicly traded. Even one star missing and you are setting yourself up for failure in that particular business.
5. Mutil level you are usually selling a product. Pyramid schemes entail bringing in some people who give money. Stay away from both if possible.
6. The difference: Pyramid scheme wants you to take out big money from your pocket. MLM wants you to use their products as needed (of course the more the merrier). The similarity: Both pyramid and MLM want you to get the people you know to do the same thing you do. This is the main reason that both of them are undesirable.