There are also pyramid schemes, which can look a lot like multi-level marketing, but are illegal. According to the Better Business Bureau, there are ways to spot the difference.

These types of so-called “multi-level marketing companies” (MLMs) specialize in getting individuals — usually classified as independent contractors — to sell their products to the public.

From May 19 to June 15, Washington Improv Theater (WIT) will present Not a Pyramid Scheme, an improvised show that satirizes the world of multi-level marketing (think essential oils and overpriced ...

Multi-level marketing (MLM) is a large industry in the United States made up of independent salespeople that sell both products and the opportunity to join the business. The increasingly predatory ...

How do you know whether someone is trying to recruit you into a pyramid scheme or multi-level marketing scheme? Pay attention to these common pyramid scheme warning signs.

Herbalife, Amway and Mary Kay: How multi-level marketing ‘pyramid schemes’ are bankrupting America Caroline Howe March 23, 2024 collage of pyramid schemes ...

“People ask what do I do. I said, ‘I build pyramids, man.’” “Is this one of those pyramid things? Hell, yeah it is. If it wasn’t, I wouldn’t be doing it. Do I look dumb enough to go get a job again?” ...

The FTC’s ruling on Koscot declared that the business of recruitment was an endless chain—a true pyramid scheme—and that selling the right to sell was illegal.

It took the core element of a direct selling/multi-level marketing company, the recruitment of sales representatives, and then claimed that core element rendered the company a pyramid scheme.

However, like pyramid schemes, MLMs offer additional commission and bonuses for people who recruit others to sell products underneath them.

One suspect has pleaded guilty and another is in custody in a multi-level marketing operation that allegedly defrauded investors out of nearly $2 billion.