There is a huge difference between Multi Level Marketing and a Pyramid Scheme…
Multi Level Marketing programs pay you to do the Marketing. You earn money because you take care of the marketing of the products or services offered by the company.
The company involved can pay you on multiple levels, because you create a marketing network.
A Multi Level Marketing program offers products or services that a of value and also useful to the end user.
A so called MLM program becomes a Pyramid Scheme when the company pays you based on the number of people you recruit. The product or service offered is not of much use to the end user. It may also be priced much higher than other similar products or services available elsewhere.
The warning signs to watch out for online are “We take care of the sponsoring“, “No Sponsoring Required“.
This defeats the purpose of the Multi Level Marketing Pay Plan… You are NOT really paid to do the marketing. The commissions are really cut out from the price paid by the end user. It does NOT come out of the Marketing budget.
Legitimate Online MLM Programs require you to do your own marketing and build up a team of end users and Marketers.
Pyramid Schemes are designed to make a quick profit for the people on the TOP levels, before the authorities put a STOP to them.
Pyramid Schemes are illegal, the products are not of any real value to the end user.
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