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08 Oct 2025

Multi-Level Marketing vs Pyramid Schemes – Where Is the Line?

MLM (Multi-Level Marketing) is legal in many countries, but it often walks a fine line between legitimate business and pyramid fraud.

A true MLM earns revenue from real product sales. In contrast, a pyramid scheme earns mainly from recruitment fees.

The confusion arises because both use similar language: “teams,” “levels,” and “commissions.”

Before joining any program, ask three questions:

  1. Can I earn money without recruiting anyone?

  2. Is there an actual demand for the product?

  3. Do most people make profit, or only the top 1%?

If the answers worry you — it’s not business, it’s a pyramid with a marketing costume.

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