Fans of multi-level marketing (MLM) often say that it is just like corporate America! There are levels of employees and managers… Corporate America is a pyramid and MLm is no different. That’s a faulty analysis. When I call MLM a pyramid scheme, I am not calling that because the management structure looks like a pyramid. I am calling it a pyramid scheme because of how it functions.<\/p>\n
A pyramid scheme<\/a> is a pay-to-play scam. People pay to become a part of it, and they pay continually through minimum purchases that are required to remain a qualified member of the scheme. MLM is based on the continuous recruitment of people into the scam using the promise of making money, despite the fact that more than 99% of participants in MLM actually lose money<\/a>. MLMs sell a fake opportunity. While they appear to be focused on selling products or services, those things are simply a front to make the “opportunity” look like a legitimate business. Sadly, MLM is not a business.<\/p>\n Corporate America is different from MLM because it is not pay to play. People don’t pay to participate. They get paid<\/strong> for their work. In corporate America, everyone makes money (although at different rates of pay), while in MLM almost everyone LOSES money.<\/p>\n Below is a snippet of an interview I did on HuffPost live, talking about this issue:<\/p>\n