Roaring Women at Multi Levels

They had a great plan. Multiple levels of membership allowing multiple levels of profit.

Multi Level Marketing, or MLM, is very popular.

Multilevel marketing (MLM) is a strategy some direct sales companies use to encourage existing distributors to recruit new distributors who are paid a percentage of their recruits’ sales. The recruits are the distributor’s “downline.” Distributors also make money through direct sales of products to customers. Amway, which sells health, beauty, and home care products, is an example of a well-known direct sales company that uses multilevel marketing.

In this sign up page, Multi Level memerbships are readily available.

KEY TAKEAWAYS

https://www.investopedia.com/terms/m/multi-level-marketing.asp

  • Multilevel marketing (MLM) is a strategy that some direct sales companies use to encourage existing distributors to recruit new distributors.
  • In MLM schemes, there can be hundreds or thousands of members worldwide, but relatively few earn meaningful incomes from their efforts, indicating a possible pyramid scheme.
  • While many MLM practices are legal, the FTC has been investigating multi-level marketing companies for decades and has found many with questionable legitimate practices such as running pyramid schemes.

Is multilevel marketing a pyramid scheme? 

Regularly faced with controversy, multilevel marketing is often compared to pyramid schemes. While some multilevel marketing operations are legal, others have come under investigation. Typically, this will occur when the majority of the operation’s profits funnel up to the top, leaving little for the rest of its members. When an organization focuses primarily on recruitment, rather than selling products, this too may signal that it is operating under a pyramid scheme. Sometimes, members of these schemes will number in the hundreds or even thousands. 

https://www.investopedia.com/terms/m/multi-level-marketing.asp