What is the difference between an MLM and a pyramid scheme?
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It’s a fine line, sometimes,
a pyramid scheme is where ALL or almost all the money a person can earn is by recruiting other people (other sellers), those people recruit others and so on. It’s bad because there is a limit in which no more people will join, it will eventually crash, making everyone loose their money, except those who started in the very beginning.
An MLM, at least in theory, you can make $$ by selling products or services, you may also get money by recruiting other people too, but a person can at least make a profit selling products (e.g: Mary Kay makeup, Avon Cosmetics, etc). A
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