A multilevel business and pyramid schemes may be similar. Are you considering an MLM business? Be careful. It can be a legitimate multilevel business. Or you can be an illegal pyramid scheme. An MLM business is an attractive proposition for many people.
The MLM business provides an opportunity to join a system to distribute products to customers. Unlike the person starting a business from scratch, the MLM business distributor has the support of multi-company that provides products and occasional training. As a member of an MLM business, you earn money by selling products to other members of your organization. Also earn a% of sales to generate your distributors in your downline. Occasionally you get a bonus for selling a certain volume of products or enroll a certain number of new members. Sounds good, right? And being part of a multi-functioning business is like being part of a large extended family. Unfortunately, not all businesses are multilevel legitimate business opportunity.
Many pyramid schemes, and frauds are designed to take away their money unwisely, are disguised as multilevel business. As business multilevel, pyramid schemes depend on the people who join our organization. As a business multilevel, pyramid schemes offer the opportunity to earn money by recruiting people and when you get certain achievement. The vast difference between pyramid schemes and MLM business is that Canada is multi-business legal and are not pyramid schemes. (To participate in a pyramid scheme offends against the professional code of Canada. Punished with five years of imprisonment) and most important addition is that businesses are based on multilevel physical distribution of products or services and pyramid schemes are based solely on recruiting people and there is no real product. For every affiliate you receive money and already there lies the illegal. The same sentence says it all: multilevel marketing is the distribution at different levels of a product or service. How could it be a legal pyramid scheme if you have nothing to distribute?