- Question
Is Multi-Level Marketing a scam pyramid scheme?
Is multi-level marketing a legitimate business model or a disguised pyramid scheme? This entry sets out the two positions on the question — that MLM is a scam pyramid scheme, and that it is not.
Position 1 of 2
Read this position →Yes, multi-level marketing is a scam pyramid scheme
The case that multi-level marketing is a pyramid scheme in substance, because its rewards flow from recruitment rather than from selling, and because a model built on an ever-widening base cannot deliver what it promises to most participants.
Position 2 of 2
Read this position →No, multi-level marketing is not a scam pyramid scheme
The case that multi-level marketing is not a pyramid scheme, because it sells real goods to real customers and is lawful where it does so, and because disappointing earnings are common to small enterprise rather than evidence of fraud.