Not all mammals have fur. Likewise, not all MLMs are pyramid schemes. Learn more about how to differentiate the legit from the illegal.

The term multi-level marketing (MLM) triggers different opinions among people. To some, it brings back memories of friends who became pushy salespersons. Others recall stories of someone who made it rich through an MLM business. And, usually the loudest of them all, there are those who associate the term MLM as the big bad no-no because they have heard all sorts of stories of people losing money after “investing” in MLM schemes.

Afterall, pyramid schemes are known scams and aren’t all MLMs also pyramid schemes?

Actually, no.

Although there are similarities such as the pyramid structure, “uplines” & “downlines”, and signing up people, they are not the same thing. Let’s explore the difference between the legitimate MLM companies versus illegitimate pyramid schemes.

#1. Registered with DSAM?

Legitimate MLM companies allow their members to build up their own independent sales business through a network, hence the term multi-level.

Multi-level marketing is a form of direct selling. Direct selling is when a direct seller approaches a potential customer before the customer approaches you, to sell them your products or services. Products and servic