Pyramid Scheme vs Multi Level Marketing

@jaypul (185)
United States
June 9, 2006 5:26pm CST
What is the Difference between Multi Level marketing and Pyramid Schemes?
3 responses
@sirons (14)
• United States
18 Apr 08
Pyramid schemes don't really market a viable product. Their target commodities are simply the people you sign up under you and the fees that are paid by that person. Its illegal and the government goes after those companies. If a company has been around for YEARS since all of the attention brought to these types of unethical business practices they are probably legit. Always do your research and check out sites like Ripoffreport.com. Just keep an open mind because even Avon, MaryKay and Tupperware are considered to be in the MLM family and they are very reputable companies. Also If you look long enough you are going to find complaints for every company out there in this industry but they are not all bad. Sometimes its a matter of someone who just didn't understand what it meant to be a MLM or IBO.
• United States
12 Apr 08
I also believe that they are the same thing. And, both can be illegal, too. Basically, both rely on recruiting new members so that the people on the top of the pyramid get paid. But, the people who just joined or who are on the bottom get nothing.
• United States
11 Oct 06
I believe pyramid schemes and multi-level marketing are the same thing. Network marketing however is different in that you work together, you can pass the person about you and you can be equal to the person above you.