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 interpretation
It's not a wrong interpretation. MLM and Scam often goes hand in hand because it is so critical to gain new customers.
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.
As far as I understand, in Ponzi's there aren't any actual products which is being sold, it's just a dummy company, a false investment, and some fake promises!
On the other hard, mlm's can be used as a medium for an actual product which can be sold for profits and gain new recruiters!
But in most of the cases (mostly), it's used for the opposite purpose (scam)! Otherwise mlm itself isn't bad, the people who are abusing it are.