MLM is the one and only business that gets expanded by the number of sign-ins of distributors and product sales. This chain of distributors is the sellers or maybe buyers of that MLM company. Multi-Level Marketing is also a business scheme but some fake definitions about MLM had spread like a forest fire and given the name Easy Money Making scheme.
Some people had taken it as an opportunity and they duplicated MLM business and started pyramid schemes. They started making scrap products and started signing in distributors by taking money from them. At the early stages, people start earning and they trusted the pyramid scheme. For more money, the distributors start signing in more people under them by taking money from them. When the chain grows to an extent the more the host of the company earns money.
The host fools all the distributors and then vanished with the money. That was the black day for MLM business which was marked in each and every calendar because the network of pyramid scheme companies has already crossed the boundaries and extended to all over the world. People lost their money and they again started signing in people to get back their lost money which they have invested.
This is the main negative impact that brings all MLM companies under pyramid schemes and makes MLM business illegal.
After that, some legit MLM companies take initiative and give the right knowledge to people about MLM and its plans as a result some of the countries opens and call back MLM companies. Now the MLM industry is worldwide and unbeatable.
How to find legit MLM companies?
Are you interested in joining an MLM business? If yes, Check out the best MLM companies here.
At present-day finding, legit MLM companies is a tedious task. But don’t worry I can give you some tips to find the best MLM company.
- Firstly you need to select one company to join from the above list that I have given. Apart from the details given in my blog, you can also browse the company name for fetching more pieces of information.
- Ask your friends or family members who are former members of any MLM companies.
- The best way to know more details of an MLM company is to find one of the distributors or customers of that company and make a chat with them.
- Investigate the legal issues faced by the MLM company. This is the most important point that you must not forget.
- Check the MLM compensation plans of that company. Ask the distributors whether they have been paid with their commissions.
Differences between MLM Business and Pyramid schemes
|MLM Business||Pyramid scheme|
|Legit MLM companies focus on their product sales.||Pyramid schemes focus more on money than product sales.|
|Produces good quality and valuable products.||The company makes scrap products that do not have enough quality and value.|
|Products have a reasonable price value.||Pyramid schemes have a bunch of low-quality products with a high price value.|
|The distributors are paid with their correct commissions and enlarge their chain of distributors only for the sales of the company products.||The distributors are paid with some commissions who have joined the company at the early stage and the company enlarges the distributor’s network only for making more money.|
|MLM Business is legal in many countries.||Pyramid schemes are illegal. Participating in a pyramid scheme is considered an offense in countries like Canada, punishable up to five years inside the bars.|
The main difference between MLM and pyramid scheme is that: A legit MLM company will have the best MLM software that perfectly works as a business partner in that business where a pyramid scheme does not have it.