Just two questions about MLM.
1) How is a MLM format different than a pyramid?
2) What makes this format legal?
Making Money in MLM
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{ 2 comments… read them below or add one }
The MLM business I have pays from the top down.Meaning the company pays me and my sponsers bonuses ,while a pyramid pays from the bottom up.That means all the little guys on the bottom pays the guy on the tip of the pyramid. That is totally illegal.
If you go to IRS.gov you will see that a MLM business is very legal.
I hope that helps. And if you want i can give you more info about the home business that I have.
I have been involved in Network Marketing for almost 3 years now and have seen my fair share of pyramid schemes pop up all over the Internet.
The problem most people face when evaluating an MLM is they do not know what a pyramid scheme is.
So here’s a quick guide on how to spot the scams.
(A very quick guide)
The one thing which separates a legitimate MLM from a pyramid scheme is a PRODUCT.
That’s it!
If the company which you are evaluating offers a product in return for your investment to join then the opportunity is legitimate.
Whether the product is a tangible object which you can hold in your hands, a form of electronic download or a membership to a private club it is the sole factor which separates the business model from an illegal scheme.
On the other hand, if the business you are evaluating offers nothing in return for your investment apart from the sole ability to recruit others into the business then that opportunity, my friend, is a 100% positive pyramid scheme.
So the next time you are introduced to a business opportunity just apply the above information and you will know from the get go if it’s worth getting involved.
Good Luck
Carl Reed