How to Avoid Pyramid Schemes With MLM Downlines

mlm downline

In the event that you should have MLM business opportunity leads or the chance to join an MLM downline, you want to make sure that it is, in fact, a legitimate business and not a pyramid scheme.  Pyramid schemes are illegal businesses that involve the exchange of money as compensation for getting more people recruited for the business.  Not money in exchange for selling goods or services, like a commission.  There is a big difference in the legal sense.  Pyramid schemes are systems that fail if a person in the middle of the downline should leave, and people will start to lose money because there is really nothing invested.

If you are asked to join an MLM downline that involves only the investment of your money without you getting any goods or services in exchange, you may be looking at a pyramid scheme.  If the MLM business opportunity lead involves you not receiving any compensation until you recruit a certain number of new people, then it is probably an illegal pyramid scheme.

If the MLM business opportunity lead involves having you learn about a business and then proceed to sell the goods and services to others, while you receive a commission for each of the units that you are able to sell, then you are probably looking at a legitimate MLM downline.  An MLM downline opportunity lead is a leveraged business opportunity, like a pyramid scheme, but a legitimate one.  Remember that the main objective of any legitimate network marketing business or MLM business opportunity lead is going to be distribution of products, so if this is the case then you are on the right track.  If you are not mandated to recruit new members, and can make commission selling and promoting a product, then this may be the perfect MLM downline if you happen to be concerned about potentially becoming involved with a pyramid scheme.  Getting new recruits does help build leverage and increase profits, but only get involved when you are certain it is not a pyramid scheme.

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