Why are MLMs still as big as they are even though pyramid schemes are illegal in many countries?
In: Other
The difference between a “pyramid scheme” and an “MLM” is that in a pyramid scheme, *there is no product* – the only thing you’re “selling” is entry into the pyramid scheme, which does absolutely nothing at all other than move more money to the top.
In an MLM, the money still moves to the top, but when you pay into it *you get something*. This makes it legal because it’s just like buying a product anywhere else (except for a lot more than it’s worth and with a much lower chance of being able to resell it, but as far as the law cares, that’s *your* problem).
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