MLM is good as long as the product being sold is going to be used daily or product is a necessity, product should be reasonable priced and lastly, members will earn not only from sponsorship's or recruits. If those 3 are not present in the MLM that is being offered then stay away. It will just make the owners and the pioneer members rich.
Seems you are one of the few who really knows what an MLM is. Most of the replies here mistakenly took MLM as HYIP and ponzi schemes. Most of them sounds like a teenager or young kids that keep on saying things they read and believed it is the truth without thinking or researching what MLM is , probably if someone has not spelled out the meaning of MLM, they won't even know what MLM stands for.
Don't think of yourselves as some kind of special snowflakes just because you guys know about the true nature of MLM. MLMs are supposed to be established in a way where people will start selling the products of a company. There are different levels because you can get people under you when you refer them. Unfortunately, MLMs were turned into a huge ponzi scheme. Instead of focusing on selling the products, MLM members have focused on the referral part because it will be more beneficial to them.
MLMs are using the newcomer's money to pay the old ones, thus, a ponzi scheme.
You are taking the other side of MLM (those that are disguised as MLM but rather a pyramid scheme ) if you analyzed what I quoted you can see another side of it (assuming that they are both under MLM industry), it is quite annoying people keep on jumping into conclusion without even thinking the all around of it. If MLM is a ponzi scheme because the earnings came from the new comers then, Bitcoin itself is a big ponzi scheme but we all know it is not.
I wonder if you are really involved in different kinds of MLM business. Maybe all you know are the investment scheme sides where payouts came from recruites and referral. MLM does not only works that way.
from the definition,
A Ponzi scheme (/ˈpɒn.zi/; also a Ponzi game)[1] is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent..
https://en.wikipedia.org/wiki/Ponzi_schemeThey may use the Multi Level scheme but definitely ponzi scheme are not the same as those legal company that uses Multi Level Marketing.
Network marketing and multi-level marketing have been described by author Dominique Xardel as being synonymous, and as methods of direct selling.[9] Other terms that are sometimes used to describe multi-level marketing include "word-of-mouth marketing", "interactive distribution", and "relationship marketing". Critics have argued that the use of different terms and "buzzwords" is an effort to distinguish multi-level marketing from illegal Ponzi schemes, chain letters, and consumer fraud scams.[19] Some sources classify multi-level marketing as a form of direct selling rather than being direct selling.[20][21][22]
The Direct Selling Association (DSA), a lobbying group for the multi-level marketing industry, reported that in 1990 twenty-five percent of members used MLM, growing to 77.3 percent in 1999.[23] By 2009, 94.2% of DSA members were using MLM, accounting for 99.6% of sellers, and 97.1% of sales.[24] Companies such as Avon, Electrolux, Tupperware,[25] and Kirby all originally used single level marketing to sell their goods and later introduced multi-level compensation plans.[20] The DSA has approximately 200 members[26] while it is estimated there are over 1,000 firms using multi-level marketing in the United States alone.[27]
https://en.wikipedia.org/wiki/Multi-level_marketing#Direct_selling_and_network_marketing
