This is a genuine question I cannot find a clear answer to. If pyramid schemes are illegal in most countries, and many MLM companies have been accused of being pyramid schemes, how are they still legal? What specifically makes an MLM legal while a pyramid scheme is not? I understand the typical answer is "MLMs sell real products" but pyramid schemes can also have products. Where exactly is the legal line? And who enforces it?
This is a genuine question I cannot find a clear answer to. If pyramid schemes are illegal in most countries, and many MLM companies have been accused of being pyramid schemes, how are they still legal? What specifically makes an MLM legal while a pyramid scheme is not? I understand the typical answer is "MLMs sell real products" but pyramid schemes can also have products. Where exactly is the legal line? And who enforces it?
My story is different. I joined an MLM at 23 with no business experience. Failed miserably for the first year. Almost quit 5 times. But I stuck with it and now 4 years later I earn more than I did at my corporate job. The difference was finding a mentor who actually cared about my success, not just their commission.
I was a top earner making $15K per month. I walked away from it 2 years ago because I could not handle the guilt anymore. Watching people I recruited lose money while I profited from their purchases was eating me alive. I now have a regular job and sleep much better at night.
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