Multi-level marketing is a "reverse pyramid scheme," and is
LEGAL (as far as I know). There is a pyramid of distributors, with
each distributor taking a cut of the profits. Unlike an illegal
pyramid scheme, though, there IS a profit; no one "loses," but only
the people on top make a lot of money. The distributors on the bottom
make a little money.
Actually, any business with a lot of middlemen is essentially
MLM, and, although legal, is stupid business... each intermediary
adds cost, but no value, to the transaction. Anyone with any brains
tries to CUT the number of intermediaries, not increase them.
I think Amway is an MLM system; some people tried to recruit me
as an Amway distributor several years ago. I realized it was
impossible to be competitive with their system. Nonetheless, Amway
sells some very reputable products... but I suspect you can get them
for a lot less elsewhere.
-Bill
