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Posted: Tue 18 May 2021 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]
Category: Business 101

Multilevel marketing, or MLM, is a business model that focuses on enlisting everyone you know to sell a product or service in order to make sales. Although the structure of MLM companies can vary, each company is built around a single product or service that's sold for consumers. In addition to building your own customer base, multilevel marketing encourages you to recruit others as sellers.

Studies show that direct selling has made an overall sales of $180 billion in 2019. With the popularity of so-called multilevel marketing opportunities rising, it's important to know the difference between a legitimate business opportunity and a pyramid scheme. While there are many legitimate MLM programs out there, there are also a large number of scamming also.

 

 

Pyramid schemes are scams built around a similar marketing model i.e multilevel marketing model. Their creators try to convince people that they have found a way to make money by recruiting their friends and family — but the only person making money is the person on top of the pyramid. Devious sales pitches lure in a lot of victims who are under the impression that they're at the top of their own little pyramid together with promises of quick and easy money.

It gets harder for fraudsters to manipulate us as we get smarter about how they work, but sometimes we still fall into their traps. Why? Because the methods of scammers have evolved to mask their true intentions and avoid detection. To make sure you don't fall for these sneaky tricks, it's always essential to watch out for the tell-tale signs of pyramid selling.



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