Multi-Level Marketing vs Pyramid Scheme: What's the Difference?

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Multi-level Marketing (MLM) has been compared to a pyramid scheme, but there are actual differences. MLMs are legal and pyramid schemes are not. MLM focuses on direct product selling and recruitment. Pyramid schemes focus solely on recruiting. The differences can be very difficult. In this video, we explore the differences between MLM and pyramid schemes, and how to differentiate the two before joining.

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If you're not sure if it's a pyramid scheme, it's a pyramid scheme

JamesAcrossAmerica
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"MLMs are legal and pyramid schemes are not" yeah, being legal doesn't make it less of a scam, it's just a technicality for lawyers

Alystas
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Another tip, "IF ITS TOO GOOD TO BE TRUE, IT"S PROBABLY IS"

TheMatthewRed
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One easy rule is any job opportunities that costs money is a scam

heatheryllanes
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"MLM may actually be pyramid schemes aimed at just your money."

iPaperMade
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There is NO MLM that has ever existed that has not had a 99% + Loss Rate. Amway for example was found to have a 99.7% loss rate in the UK in 2006.

FeminismDebunked
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your voice goes perfect with that cartoon 😂

devinpate
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hm I climbed over a fence to attend one of this bs event in college

CameronPosh
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I want to start in an insurance company. I hear from everywhere that it is some snowball type of shot, but since i am only paying 100 € once (and this even for a seminar where i have to sleepover and eat, so basically i just pay for the hotel) i am pretty sure it isn't, and it's just a mlm business

TheOneAndOnlyJinglebi
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Not trying to second the idea of mlm but what are the difference between a 9-5 job and this?

qzq
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I need help.I don't know anything about business. My doubt is will a real marketing company offer you promotion for recruiting people when you have only started working for two days ? A friend of mine want to recruit me. I don't know the company's name and the work is done through online.( Sorry for my bad english)

arundhathidev
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Loss rates are far higher in Multi-Level Marketing than in traditional Pyramid Schemes. Amway has a very well documented 99.7% loss rate.

kellyhavingfun
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People who work in these kinds of work have no conscience

easybreezy
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Thoughts: does the company have a physical mailing address? (Google "mailing address of company") If you call them up, does a human answer the phone, even if it takes a while? Do they have a building on Google Maps? If they sell wares, do they have a warehouse? Are they registered to do business in the state or province they claim to be in?

merryhunt
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lol
mlm is pyramid scheme when you have the influence to change the law to make something that in primciple has the same effect of a pyramid scheme not legaly a pyramid scheme

sapito
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hmmm they sound the same, its just one is legal and the other is basically this video just says "So whats the main difference? well pyramid schemes care more about recruting pepole and not so much about selling their product."....and i don't know if i was the only one waiting on him to say "While mlms bla bla bla" but nope, nothing...cause its the same shit!

thehippiesmells
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Nothing! This should be a 6 second video.

BryantAvant
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Hey folks, do you have or know someone who may have a digital copy that can be shared or seen of the 1993ish MLM short dvd movie “Crossroads?”
Or any other short or long MLM/NWM movie?

jgaryfarrington
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I think all MLM are scams. Making any real money is dependent on you getting people under you selling product, and you get a portion of their sales.

aprilknight
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Have a great weekend productions 😊ideas

JonathanWirth-cp
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