Query by boo’sworld: definitions of pyramid scheme, and multi level marketing and advertising?
I know pyramid schemes are unlawful, and MLM’s are not. But if any one particular out there can additional educate me on the variations, I’d be very grateful. Thank you
Answer by Manolo
Pyramid or Ponzi schemes are “enterprise” organizations that make revenue for every single member that is dependent on the funds the members “below” shell out upwards.
Multilevel marketing and advertising operates very considerably the identical EXCEPT that revenue if produced by genuine revenue to individuals outdoors the organization. As a result, there is a true revenue sharing upwards. Nevertheless, it ends really a lot the same, profiting only the topmost members of the pyramid (Sorry, the Mlm)
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