Anybody knows about the multilevel marketing?Is that true and legal?

Question

According to this plan,you should join by paying some amount.then if you refer any two persons and make them join.if two persons join you get 20 $.if they join another 2 pers .you get another 20$...likewise it goes on infinitely .....you can earn infinetely ..they say....is this true

Answer 1

If it is legal depends on ur country and the organisation. If there is a product, no problem. But if it is just building a network for money, it is of no use, but just money squandering. Beware!

Answer 2

It is a classic pyramid scheme. There are many problems with schemes like this.

The basic problem is that SOMEONE is promising SOMETHING in order to get anybody to join. If the something promised is not delivered, it is fraud, or theft by deception. (You've paid money for no product.) If you are doing this via mail, it is postal fraud.

The other problems are social and mathematical. If you ask friends to do this, you're risking alienating friends for money. This is not a good thing to do.

The mathematical problem is that there are a large number of these schemes about. There is only a small percentage of people who are gullible enough to go along. so, instead of expanding infinitely, you're left with a smaller and smaller market of people who will join in. These groups will start to overlap, and pretty soon, you will be asked to join the same pyramid you're already in.

There are many variations on this theme, from "investment clubs", whose "returns" to the first members are just the "dues and fees" of the newer members, to the "Pay $20 for instructions to make millions." In that one, the "product" is the instructions for perpetuating the scheme. All of these are deceptive and potentially fraudulent, because there is no "REAL" product going around or service being performed.

Answer 3

It's called the pyramid scheme--you make money if you get in early, but most people lose money. Also, there is no way to make money if you don't hustle butt and get new people to join as salespeople (not to mention selling whatever it is that you are selling), unless you are lucky enough to recruit someone who does this for you.

I knew one couple who did very well with this, one couple who still does this despite making next to nothing on it for a year, and a bunch who gave up on it. I think the couple who did well with this makes as much telling people how to sell things (with videos and seminars) as they do actually selling the product.

There are some places that have made a law against this practice, but it is tough to enforce when it does exist. I know one couple who did very well for themselves with this, and several others who considered it a waste of money and time.