2007-01-08 09:51:32 · 5 answers · asked by diggers mom 1 in Business & Finance ➔ Careers & Employment
One is a sub-set of the other. All pyramid schemes are multi-level marketing, but not all multi-level marketing are pyramid schemes.
Unfortunately, the vast majority of MLM companies are pyramid schemes, and you have to look carefully to find the honest ones.
2007-01-08 22:33:44 · answer #1 · answered by Wolfman 4 · 0⤊ 0⤋
Pyramids make money only for the person at the top. The guys at the bottom make little to nothing after paying whatever fees are associated with this type of thing. No product or service is offered, hence that is why they are illegal.
Multi-level allows someone to make money starting out, but he/she is able to make more as more recruiting is involved. And yes, there is a product or service attached.
I'm glad there are people who do indeed know the difference... Some paranoid people out there see Avon, Mary Kay, Ameriplan, Agloco, etc. and start screaming "PYRAMID!!!" before they get all the facts!
2007-01-08 10:10:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If pyramid schemes were illegal, mary kay, avon and many other businesses would not be around. Pyramid schemed marketing filters revenue all the way to the top. So people at the top receive commission from marketers they "hire".
2007-01-08 09:55:32 · answer #3 · answered by Shannon L - Gavin's Mommy 6 · 0⤊ 1⤋
Pyramids are illegal. The person at the very top is the one who makes the most money. You cannot pass an upline with promotions in a pyramid scheme, which again is why it is not legal. Mlm, you can pass someone who is in your upline.
2007-01-08 10:13:05 · answer #4 · answered by gatorgirl 5 · 0⤊ 0⤋
multi level marketing exchanges product for money, where as illegal pyramid schemes exchange nothing for money changing hands
http://www.bradhasquin.com
2007-01-08 09:53:46 · answer #5 · answered by Brad H 1 · 0⤊ 0⤋