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A pyramid scheme is a rather stupid idea to which many somewhat intelligent people often fall prey. A pyramid scheme works on the principle of using money from members to pay other members. It lures people with the idea of making money just by joining. The concept\u00a0is that\u00a0more and more people will join, and you use the money given by the people who join to pay the people who invite them to join.\u00a0Any moron can see that a pyramid scheme will work for a while but eventually collapse and leave most of its members in financial ruin. A pyramid scheme promotes no product or service of value to its members.<\/p>\n
Many people suggest, or state outright that MLM is a cleverly disguised pyramid scheme. This is not so. While the members of an MLM program can be easily represented on a pyramid, all legal MLM programs carry a product of value, and are therefore not a pyramid scheme. The product\u00a0is what you\u00a0are paying for first. The second thing you are paying for when joining an MLM program is the opportunity to make money. Your ability to make money with an MLM program depends on many factors.<\/p>\n
Related: What factors determine success in multi-level marketing?<\/p>\n