MLM Script and MLM Software

What's the difference between multi-level marketing and pyramid scheme?

And can you tell me if multi-level marketing works at all? I know that pyramid scheme is illegal, so I want to know if that's the same as MLM.

Public Comments

1. An MLM is based on products or services. Your income is based on a consume of yours and your referrals. In a good MLM system you can make more money than your sponsor if you work harder. In a pyramid scheme you are paid for referring people. Generally there is no product and is "too good to be true" paying percentage. This schemes can be recognized if you see that in the payplan you don't have to purchase and get paid. Earlier come earn more.
2. This is a good question that many people including myself have asked. MLM is a business model that has been around for over 40 years. Some people and companies have abused this model by creating pyramid schemes out of greed to scam people out of their money. MLM works which is exactly why scam artists have abused MLM. I have an open discussion that I'm interested in hearing others' opinions: http://lbrihawaii.blogspot.com/2010/07/some-mlm-debatewhats-your-take.html
3. MLM works and is the vehicle responsible for helping many people on the road to find financial independence, typically within 2-5 years. There is, however, much confusion and misunderstanding concerning this business model. A pyramid scheme has no real product so commissions are based on bringing new people into the scheme who in turn also bring new people into the scheme. It's usually the people at the top that get the most while those at the bottom get very little. Eventually all pyramid schemes collapse because there is no real product being sold. MLM, on the other hand, usually has a very real product that is sold either by retail or through members personal purchases (usually both). Members are encouraged to build a network of distributors to market the product. In MLM you can earn more than those at the top if you apply some effort. In a pyramid scheme you can never earn more than those above you, so when investigating an MLM company see if you can find out if there are people earning more than their sponsors, (this is the crucial test to weed out pyramid schemes)
4. let me brake it down for you here. there is no diffrence, the problem is people oftend think scheme and scam are the same thing when if fact they are completly difrent. a scam is some were you get complettely screw like buy shoeses from some and not getting any shoeses. a scheme is great for some but not so good for others depending on where you fall in the mix. and Pyramid scheme's are as legal and american as apple pie my friend. now scamming people is illegal. but this is they way the world works every thing is a pyramide from mcdonalds to microsoft you have the people on the bottom doing a lot of work so the people on top can make shit loads of money for doing very little. it's all about the angle. if you buy something and get what you paid for it is legal unless your are selling and buying something illegal of cores. if i walk around selling pennys for 5 bucks and you are dumb enofe to buy them it is 100% legal
5. Pretty simple. pyramid schemes tend to : Pay you to find new members (payment based on enrollment) and require new members to afford to pay existing ones. MLM is a legitimate business, and the Product is KING. You don't get paid to find new people to enroll, you only get paid as product is sold through your network. In short, you get commissions based on your, and your teams, SALES.