The question comes up all of the time for network marketers, “Is this one of those MLM pyramid deals?”
The fact is, most people do not really understand the difference between a pyramid scheme and a legal MLM or network marketing business opportunity. Even most journalists writing on the subject do not understand the differences.
The reason is that it is not as simple as one might first expect. I used to think that if there were products changing hands, it was legal. If there was only money changing hands, it was illegal. While the latter is certainly illegal, a product alone will not necessarily legitimatize an illegal scheme.
On this page is a recording of a live webcast I did a while back not only explains the difference in a way anyone can understand, but it also explains a concept that can help you quantify the “grey areas.”
I guarantee that you have never seen it explained like this…
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- Important DRA call: Legal MLMs vs. Illegal Pyramid Schemes - March 2, 2010
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