How to Separate Legit MLMs From Pyramid Schemes

There's a big distinction we have to make between multilevel marketing and pyramid schemes. A pyramid scheme uses the same structure as an MLM, except that in the pyramid scheme, the primary source of profit is recruiting new sales reps instead of selling the product. If an MLM has been around for 60 years, it's probably not a pyramid scheme. The business model can't be sustained long term. That's where the red flag comes in.

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