MLM vs Pyramid

Many people confuse multi-level marketing companies with pyramid schemes. There is, however, an important difference. While technically, a multi-level marketing company has a product and a pyramid scheme does not, that is not our definition of their difference. A multi-level marketing company must have a product, but, in our opinion, a pyramid scheme can have a product, too. Many "legitimate" companies are, in our mind, pyramid schemes. The difference, in our mind, is that multi-level marketing companies preach their products while pyramid schemes preach the opportunity to make a lot of money with their company. If the company preaches the opportunity, they are a scheme, and you should avoid them.