If you feel with doubts about whether or not the MLM is a fraud, it is probably because you were invited to a talk which showed you some products and told you how you could earn good money with them, or even achieve financial freedom and make your dreams reality. At the end of this article not only you will know if the Multilevel (MLM) is a fraud or not, but also know how to differentiate between a scam and a legitimate business opportunity today there are companies (like Herbalife, Amway, Mary Kay, Omnilife, Usana, Organo Gold) which sold hundreds or even thousands of dollars a year through the multilevel system. The question is: are these multilevel companies a fraud? The answer is that these are legally established companies, they pay taxes and their marketing system is allowed by practically all the countries of the mundobajo the category of direct selling. Even in some countries such as USA and Spain there are specific rules to regulate systems Multilevel. But… Not MLM is one of these pyramids? You must first understand that the pyramids Yes are a fraud and even are illegal in major countries of the world. Now, what is the difference? What is the difference between a MLM and pyramid? The difference lies in the sale of a product (or service).
In the pyramids all you must do is recruit or invite people into the pyramid for a fee (usually $ 1000 or more) which gives you the right to earn a percentage of the fee paid by others who are entering the pyramid. As you can see, there is NO sale of goods or services in the pyramids, profits come directly from the money that people pay to belong to the pyramid. While in MLM (Network Marketing) Yes there is a product of by means which is sold, for example, if you have a group of 200 people that generates a total of sales of products of 30,000 dollars a month, you will pay approx.