Re: What's the DIFFERENCE between MLM and Pyramid scam

Posted by keith on September 01, 2004 at 18:14:54:

In Reply to: What's the DIFFERENCE between MLM and Pyramid scam posted by Murmansk on July 11, 2004 at 11:25:43:

I would like to emphasize that just because an opportunity offers a real product or service to be distributed, does not mean that the opportunity in and of itself is legitimate. Some mlms use a product or service as a front for an illegal pyramid scheme. Again, the major factor in determing whether a distribution operation is an illegal pyramid, or a legitimate mlm, is whether or not the focus of that opportunity is on creating sales to outside customers who are not part of that mlm operation, where the entire profits for that business are not generated soley from internal sources, but also from outside non-participant spending for that business's products or services as well.

: I just recently discovered this MLM phenomena. And I've read all I can read all over the net. I haven't got any energy left to read all the posts in here so I'll ask bluntly.

: What's the DIFFERENCE between MLM and a Pyramid scam? I can't see the differences that sets them apart. I probably should buy that book that was recommended at main site but then again, I'm not so keen on buying something I don't understund after reading the "whole" net. :-(

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• Re: What's the DIFFERENCE between MLM and Pyramid scam john 15:04:53 11/16/04 (0)

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: I would like to emphasize that just because an opportunity offers a real product or service to be distributed, does not mean that the opportunity in and of itself is legitimate. Some mlms use a product or service as a front for an illegal pyramid scheme. Again, the major factor in determing whether a distribution operation is an illegal pyramid, or a legitimate mlm, is whether or not the focus of that opportunity is on creating sales to outside customers who are not part of that mlm operation, where the entire profits for that business are not generated soley from internal sources, but also from outside non-participant spending for that business's products or services as well.

: : I just recently discovered this MLM phenomena.  And I've read all I can read all over the net.  I haven't got any energy left to read all the posts in here so I'll ask bluntly.

: : What's the DIFFERENCE between MLM and a Pyramid scam?  I can't see the differences that sets them apart.  I probably should buy that book that was recommended at main site but then again, I'm not so keen on buying something I don't understund after reading the "whole" net. :-(


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