If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan.
If the money you make is based on the number of people you recruit and your sales to them, it’s probably not.
It could be a pyramid scheme.
Are MLMs pyramid schemes?
Many pyramid schemes attempt to present themselves as legitimate MLM businesses. Some sources say that all MLMs are essentially pyramid schemes, even if they are legal. The U.S. Federal Trade Commission (FTC) states: “Steer clear of multilevel marketing plans that pay commissions for recruiting new distributors.
Who invented the pyramid scheme?
Carlo Pietro Giovanni Guglielmo Tebaldo Ponzi
How do you explain a pyramid scheme?
A pyramid scheme is a way of making money that cannot continue very long. It involves promising people payment, services or ideals, primarily for enrolling other people into the scheme or training them to take part. It does not supply any real investment or sale of products or services to the public.
Is Amway still in business?
They shut down all corporate offices associated with the Amway organization including the offices of some Amway distributors. The enforcement said that the business model of the company is illegal. Amway is really more about making money from recruiting people to become distributors, as opposed to selling products”.