What is the difference between an MLM and a pyramid scheme?
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The presence of a product. That’s it.
In a pyramid scheme people on the bottom pass money up and that’s it. In a MLM the people at the top are selling samples, products, and kits to those below them. Since a product is involved it is not illegal like a pyramid scheme. The money is still being shifted to those at the top.
Those at the bottom can try and sell the products for horribly small profits, or they can try and recruit people to sell their products for them and get a cut, just like a pyramid scheme.
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