⭐ Merited by Darker45 (1)
Disclaimer: Please don't invest in MLM Systems, you won't get your invested money back. In the following topic is explained why:
This is a wrong interpretation. MLM is a good marketing concept. What is wrong is the ponzi scheme system. I think MLM and ponzi scheme are different things. This is a wrong interpretationI agree with @PytagoraZ in terms of defining the thin wall between MLM and Ponzi Scheme, they are two different business model. If we look on the difference of the two, the Ponzi Scheme relies solely on the entry of future members while Multi Level marketing earnings depend on the products sold personally and commission on the product sold by the recruited person or downline. Ponzi Scheme is an illegal business model while MLM being product-focused make it a legal business.
Anyway, this is a good comparison between MLM and Ponzi Scheme, I believe it is better to hear or know it from someone who is really into the system: https://www.linkedin.com/pulse/ponzi-scheme-vs-network-marketing-whats-difference-tim-sales
In MLM, the early birds occupy the juicy slots while having others join the pyramid to enrich them. Same is applicable in Ponzi scheme. The notable difference is that Ponzi scheme ends faster when there's no more inflow of income to sustain the system while MLM can go for so long.
If there are things I need to know in MLM that made it a saint over Ponzi scheme, please let me know.
If there are things I need to know in MLM that made it a saint over Ponzi scheme, please let me know.
Pioneers always get the most benefits, that is true universally. Even in investment, buying shares, and stocks, those who buy in the early phase before the project develops get the most benefit.
Product-focused MLM (under the umbrella of direct selling) being a legal thing makes it a saint over fraudulent Ponzi Scheme any time of the day
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