What is the difference between an MLM and a pyramid scheme?
In: 92
MLM stands for Multi-Level Marketing and is a legitimate business structure where people can earn money by selling products or services. With MLM, the focus is on selling products and services, not recruiting people. MLM companies usually have a solid product or service to offer and they pay their members a commission when they make a sale. A pyramid scheme is an illegal business structure where people are recruited to join the scheme and are promised money or rewards for recruiting other people. The money made by the scheme comes from the money invested by the people recruited, not from selling products or services. Pyramid schemes are illegal because they focus on recruiting people, not on selling products or services.
Latest Answers