The most popular multilevel marketing (“MLM“) companies and brands have attained near-cultural icon status: Amway, Herbalife,Mary Kay, and Shaklee. Many Americans are familiar with these brands, as well as some of the lesser-known variations that might have been introduced by an overzealous acquaintance, through an infomercial, or via the Internet. The popularity of the multilevel marketing method is no fluke; direct sales can be a profitable business model. However, caution is warranted for prospective market entrants, for there is a network of state and federal laws and regulations that must be navigated in order to ensure that a given multilevel-marketing operation is not deemed to be an illegal pyramid scheme.
If you’ve ever wondered just what is the legal difference between a MLM operation and a pyramid scheme, read the entire analysis here.
- Multilevel Marketing: How to Avoid Building the Pyramid(verdict.justia.com)
- Simple Tricks When It Comes To Multilevel Marketing(empowernetwork.com)
- 5 Real Truths about Multi Level Marketing (sarahtelford.com)
- MLM Millionaire Suggests Herbalife May Be First Domino to Fall in “Doomed Industry” (prweb.com)
- MLM Is A Scam And Bad Business (ethanvanderbuilt.wordpress.com)