The definition of “legal” is “Authorized by or based on law.” Yes, MLM is LEGAL! (and no MLM is not a scam) Says who? Says the U.S. Federal Government. In 1975 the Federal Trade Commission accused and sued Amway Corporation for operating as an illegal pyramid. After four years of litigation the court ruled that […]
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 son was young […]
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. […]
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 […]
A chain letter may appear like MLM because one person is sending a letter and making money off each person that comes in later – but MLM is not a chain letter. Chain Letter Scheme An illegal scheme whereby someone writes a letter that attempts to induce the recipient to make a number of copies […]
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 […]