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Pyramid Scheme vs MLM... Do you know the difference?

I have a business with Ameriplan. I have also worked with a number of other MLM Home Based Businesses like Avon and PartyLite.

I get so sick and tired of everyone thinking that MLM is a pyramid... Although it is set up similarly it's far from the same...

So, do YOU know the difference??


Asked by Anonymous at 11:19 AM on Apr. 21, 2009 in Money & Work

This question is closed.
Answers (4)
  • It's really simple... a piramid doesn't have a product/service that you can market. And if they do like Amway did, they require you to buy the product from the enroller and not from the company.

    A pyramid is when there is not product. You are buying a spot and then you have to bring others in to do the same. But there is no product...

    Comapnies like Ameriplan, Avon, Tupperware, DCC, Pampered Chef... yada yada are NOT pyramids! They are legit companies...

    Pyramids are illegal and not usually a safe thing to get involved with.

    Then there are all these "gifting" programs... Which are a legal pyramid. The reason they are "legal" is because they usually have a fine print which says you may not make money and they ususally give you a site full of free offers... This means they are not passing them selves off as money makers and the "freebie" site is a "service" - Really shady!

    Answer by SabrinaMBowen at 12:19 PM on Apr. 21, 2009

  • A pyramid scheme relies on the next person in line to join (and pay) in order the people above them to make money. A MLM does not, you can earn on your own, but can also make commission from sales of people in your downline

    Right? lol

    Answer by customcat2000 at 11:35 AM on Apr. 21, 2009


    We have 2 intelegent people!! Any more??

    Answer by Anonymous at 12:19 PM on Apr. 21, 2009

  • I understand your frustration.  A lot of times they are just not informed. My business is a Dual Marketing not a MLM. And we are labeled both MLM and pyramid too. If you really think about it, Corporate Companies are really set up as a pyramid. There is a top guy that gets paid the most...


    Answer by AmyMK at 1:11 PM on Apr. 21, 2009