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 illegal pyramid scheme and a legal “MLM,” multilevel marketing 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 video recording I did a while back that 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…
Part I on this page is about 8 minutes. Watch it carefully, then move on to Part 2. Together, they will help you more fully understand and explain what is a legal MLM and what is not, AND what is a profitable and smart MLM, and what is a scam.