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In message <[log in to unmask]>, [log in to unmask] writes > Multi-level marketing is a "reverse pyramid scheme," and is >LEGAL Quite correct. > There is a pyramid of distributors, with >each distributor taking a cut of the profits. > Actually, any business with a lot of middlemen is essentially >MLM, No, that isn't correct. MLM is a business where the marketing is done at multi-levels - hence the name! There are some MLMs with middlemen, but the best ones have the distributors (at whatever level in the pyramid) dealing direct with the producing company and their customers (which may include further levels below them in the marketing/sales pyramid). > I think Amway is an MLM system; They do indeed run 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. MLM *CAN* be the most ethical form of business, with the rewards going NOT to the person who is highest on the ladder, but to those who work hardest and smartest. Compare this to, say buying a pair of socks: these are sold to you at a store by a sales assistant, who may work long hours for a fairly minimal wage. Nothing he/she does is going to raise their income to the level of the president of the company retailing the gfoods, nor the president of the company making them. By the nature of the "normal" manufacturing-wholesaling-distribution-retailing chain, there are fat cats sitting at the top of their empires getting paid loads of money for doing no more than those at the bottom! MLM suffers from it's closeness to the pyramid sales scams of the sixties, where people were incentivised to build their pyramids, rather than on product sales. A number of people made fortunes recruiting people who often paid money to join their scheme, only to find there was no substance in it, and were left "holding the baby"! The REALLY sad thing is that people will say "I don't want to join a get-rich-quick scheme" and are then grossly disappointed that what they are presented with will NOT make them rich quick with minimum effort! -- Jeremy Browne - [log in to unmask] Shaking Hands BBS - +44 (0)1252 626233 - Fidonet 2:252/160 Turnpike evaluation. For Turnpike information, mailto:[log in to unmask]