Difference between Multilevel Marketing and Pyramid Scheme
Here are some key differences between Multilevel Marketing and Pyramid Scheme:
| Multilevel Marketing (MLM) | Pyramid Scheme |
|---|---|
| Legal in many countries, with regulations | Illegal or heavily regulated |
| Direct sales and recruitment | Primarily from recruitment |
| Offers legitimate products or services | Lacks a legitimate product or service |
| Balanced focus on sales and recruitment | Focuses almost exclusively on recruitment |
| Sustainable if focused on product sales | Unsustainable due to reliance on recruitment |
What is Multilevel Marketing? How MLM Works
Multilevel Marketing (MLM) is a strategy that has intrigued many and sparked widespread curiosity. At its core, MLM is a business model that combines direct sales with a hierarchical structure of distributorship and compensation.
In this article, we will be discussing what Multilevel Marketing (MLM) is, how it works, its features advantages, disadvantages, and more.
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