MLM, Ponzi or Pyramid Scheme. What is the difference ?

1. What pyramids schemes are and how to
detect them.

2.  a non-sustainable business model
 promises participants payment or
services, primarily for enrolling other people
into the scheme
 does not supply any real investment or sale of
products or services to the public.

3. Ask these questions:
1. Is there a product?
Pyramid schemes do not have products. A pyramid
scheme consists of signing people up under you to
create a pyramid like structure. There is no exchange
of products or services.

4. 2. Are participates given to me
or do I work for them?
Many pyramid schemes automate sign ups. You
virtually do no work. In many instances you are
virtually placed under someone who did not
personally recruit you.
The program then promises to
give you X amount of
participants under you tree.
Now, this is not to say all
pyramid schemes are like this.
Some you do have to do some
recruiting to your team.

5. 3. How long has this “business” been around?
Most pyramid schemes are short lived. They emerge
quickly and leave quickly. Based upon the longevity
and how long the program has been around, use
your judgment when joining. Do not confuse new
emerging Multi-level marketing opportunities as
pyramid schemes.

6. It is important that you understand what a
pyramid scheme is. A pyramid scheme is not
any multi-level marketing opportunity. Do Not
confuse the two.