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  Is MLM pyramid selling? Much emphasis is made of the fact, by those who promote it, that MLM is legal and therefore not a pyramid scheme. Opponents of MLM object that even though it is legal, it is still based on the pyramid system, and it has all the inherent dangers and drawbacks of a pure pyramid scheme. Pyrami ... d scheme: An illegal multi-level program wherein people pay an entrance fee for the sole opportunity to recruit others to do the same. Members to the scheme pay a joining fee which is passed on to those above them in the scheme. Their purpose is to recruit new members below them in the scheme in order to qualify for a share of their joining fee. Characteristics of a pyramid scheme. Position in the scheme is important. The scheme is based on a pyramid structure, hence the name, with a few people at the top and an increasing number of members in each layer below. Money paid in by new investors flows from the bottom to the top. It is therefore important to be at, ...

Beware of Pyramid Schemes.. A pyramid scheme is a fraudulent investing plan that has unfortunately cost many people worldwide their hard-earned savings. The concept behind the pyramid scheme is simple and should be easy to identify; however, it is often presented to potential investors in a disguised or slightly altered form. For this reason, it is important to not only understand how pyramid schemes work, but also to be familiar with the many different shapes and sizes they can take. The Scheme As its name indicates, the pyramid scheme is structured like a pyramid. It starts with one person - the initial recruiter - who is on top, at the apex of the pyramid. This person recruits a second person, who is required to "invest" Rs.100 which is paid to the initial recruiter. In order to make his or her money back, the new recruit must recruit more people under him or her, each of whom will also have to invest Rs.100. If the recruit gets 10 more people to invest, this person...

What's Wrong With Multi-Level Marketing? a.k.a. "Networking" Companies Bad Image or Bad Reality? "Let me tell you about an incredible ground-level business opportunity," and you are invited to a house or to lunch for "a discussion." Funny enough, you feel sick in your gut that there is some hidden agenda or deception. "Probably a multi-level marketing (MLM) organization," you think. Suppose it is? Should you trust your instincts? Is there anything wrong with MLM? This article will analyze four problem areas with MLM. Specifically, it will focus on problems of I) Market Saturation , II) Pyramid Structure , III) Morality and Ethics , and IV) Relationship Issues associated with MLMs. Thus, you can properly assess your "instincts." I. Market Saturation: An Inherent Problem Back to the Basics A tutorial on market saturation hardly seems necessary in most business discussions, but with MLM, unfortunately, it is. C...