What is a Ponzi scheme and is MLM a similar scam?
Ponzi Scheme
The word Ponzi comes from Charles Ponzi who made this type of scheme well-known.

A Ponzi scheme is an illegal investment scheme that involves paying returns to investors out of the money paid in by later investors, rather than from net revenues generated […]

The view that MLM (Multi Level Marketing) companies could “collapse” when no more new people are joining the business is a wild mathematical myth.
The statements were originally made hundreds of years ago about pyramids - and then some people applied the same concept to MLM - […]

If MLM companies pay commissions on multiple levels of distributors, does that raise the price of the product?
Of course it does. But there are two things that should be factored in when looking at this:
1. Whether those levels add more cost than the traditional advertising budget does.
2. Whether those levels add any value […]

Some make the claim, “Most people fail at MLM (Network Marketing).”
Who would make this statement? My guess is people trying to justify why they failed
or never started.
If you looked at the statistics of how many people succeed compared to how many “fail,” you could draw the conclusion that […]

Sometimes people think that in MLM (Network Marketing) only a few people at the top are making most of the money. Is it true?
This is actually true…but it’s no different in other businesses, in other industries, or in other countries!
If you research the traditional executive and owner compensation of most companies, you’ll see that […]

MLM’s triangle shape makes it a pyramid, so MLM is a scam, right?
Sometimes uninformed people think the shape (polygonal base or triangle) of an MLM company makes it an illegal pyramid scheme. This is false.
Many organizations are pyramid-shaped without being a pyramid scheme: for example. Your family tree is shaped like a pyramid. The […]

What are they and  what do they have to do with MLM?
To be able to determine whether MLM (or a specific MLM company) is or is not a  pyramid, scam, Ponzi scheme, or chain letter, you will need to understand each of them. Only then can you differentiate between them.
When my […]

When large numbers get tossed around in conversation people tend to get “numb” to what they mean.
To help put these numbers into perspective, I’ve compared them to seconds so you can see the magnitude of the losses which have come as a result of gambling and the stock market.
1 million seconds = 12 days
1 […]

Trying to decide between MLM companies, make sure you choose a good one!
In order to evaluate an MLM company properly, there are things that must be understood. “The expense can be high for an improper evaluation.” If you don’t join the right company, you could miss out on millions of dollars of income; if you […]

People join MLM companies for many different reasons.  Here’s a partial list:
Join MLM as a social activity
MLM is a great place to meet people and have fun. There are business meetings, training meetings, cruises, cookouts and fireside chats where you can meet lots of new friends. Conversation topics are normally business and personal-growth related. I […]