Forsage and Herbalife—How Multi-Level Marketing, Pyramid Schemes, and Ponzi Schemes Differ
Money For the Rest of Us
The Difference Between Pyramid Schemes and Legitimate Multi Level Marketing Firms
The f t c continues to shut down on multi level marketing programs that they considered to be pyramid schemes. The difference though, between a pyramid scheme and a legitimate multi level marketing firm is a pyramid scheme focuses more on not selling the product, but in having you, as the distributor, find other people. Most of the income isn't driven from product sales, at least product sales to individuals outside of the network. Its product sales from new recruits. And it's those commissions from bringing in those new recruits, from their introductory packages that they buy, that is the bulk of the income. Often s the pyramid schemes over promise and interms of how much a distributor can make.
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