Is MLM and Network Marketing a Legitimate Business Or Just a Ponzi Scheme Pyramid?

This question of whether MLM and network marketing is a ponzi scheme pyramid or a legitimate business model is an area that can be filled with heated debate. There are many people who are involved with MLM and other forms of network marketing and most of them will give you a very emotionally charged argument that this is a legitimate form of business.

There are businesses who have legitimate products and services and they use network marketing to distribute them. These are products and services that people buy because they find value in them. Some of these businesses have been around for a long time and have been very successful. Of network marketing companies these are the minority.

Most network marketing companies have products and services that most people would not buy if it didn't have an opportunity attached to it. The cost of the product or services are often too high, of poor value or in some cases there is no product at all. Programs like these pop up all the time and they typically don't last long. A year or two at the most.

So where do we draw the line between a legitimate business and a ponzi scheme pyramid? Some would say that it is a matter of whether the product is a good value that people would buy even without a business opportunity attached to it. Some will say as long as there is a product it is legitimate. Then there are many who say none of that matters and it they are all ponzi scheme pyramids.

It really just comes down to a matter of opinion. People have their own opinions on how to judge the industry and that's probably not going to change. What is probably more important is the fact that most people who get involved with these programs never make much money with them and most lose money. There is a small percentage who make a lot of money but more than 95% of people fail when they get involved regardless of how stable the companies are, how they are structured or how good their products are.

So does this mean the industry is a scam? Not necessarily, some people do well with it. But these are professionals with specialized skills and many years of experience. What may be considered a scam is how these programs promote themselves as a way for average people to make easy money. In reality network marketing is very difficult for most people. There are much easier ways to make money but when an opportunity doesn't depend on selling the opportunity in order to make money, you don't hear about them much the way you do with network marketing.

Regardless of whether you believe MLM and other forms of network marketing is a ponzi scheme pyramid or a legitimate business model, the fact is most people don't make much or any money with any of them.

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