that I snipped the quote below from. It's about 2 companies that claimed to be MLM but were actually illegal pyramids.
There are many people who automatically think MLM companies are pyramid schemes...you'll find most press includes the word scheme in relation to MLM, so is it any wonder? Even this quote does just that:
"Using the MLM or networking scheme to sell products or services is not illegal. But when the scheme is used in a way that income is generated primarily from recruiting others into the company instead of selling products, then it becomes pyramiding,” Cristobal stressed.
But because it clearly states what practice is illegal - being paid to recruit, rather than move product - it is worth posting here.
If you are interested in understanding the MLM business model, watch the "Brilliant Compensation" video at MLMWorkAtHome.com
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