Multi-Level Marketing: Pyramid Scheme: The majority of commissions are paid when a product or service is sold. The majority of commissions are paid when new members are recruited.
Multi-level marketing is a strategy that some direct sales companies use to encourage their existing distributors to recruit new distributors by paying the existing distributors a percentage of.
Multi-Level Marketing Businesses and Pyramid Schemes | FTC Consumer Information
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Multilevel Multi marketing scheme marketing scheme is commonly confused with Pyramid Scheme; wherein one pays to join and become an agent of the multi marketing scheme who get paid for recruiting others into the system and thus widening their network.
The entire purpose of MLM click to move product. So, much like pyramid schemes, Ponzi schemes inevitably collapse when they run out of new investors.