Back in the 80’s and 90’s the term pyramid scheme was prevalent in American business, these days those same types of businesses are called MLM scams.

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mlm people pyramid

MLM, or multi level marketing is a new form of those old pyramid schemes and like the old school version, should be avoided at all costs. Nobody but the guys at the top make money off of those programs. The likelihood of anyone at the bottom rungs making money is slim to none. Don’t waste your time with MLM, there are other ways to make money online and at home.

The way MLM scams work is there is one company at the top of the chain, or the top level. That company uses outside affiliates to push their product or service. So, for instance, below the very top person is another person who directs all sales to the top and gets a commission for it.

As the second person adds people to his marketing list and they buy stuff, the money all goes uphill exponentially to the top person. As a member of this organization you have to purchase the goods and services of the top person in order to receive compensation from the purchases of others. In theory, you get commissions from everyone you turn on to the product or service.

What ends up happening in MLM scams though is that the bottom rungs end up buying more products or services than they need and spend more than they need. The differential should be taken up by the people that they sign up for the program but it almost never works that way. It is easy to see how all the money flows up hill in those scenarios.

The thing to remember about MLM scams is that you are in effect a salesperson for the head organization. Not in the traditional sense of course because it is all done online, but in essence it is a regular sales job except you end up spending a lot more money than you can ever make.

Avoid MLM scams and don’t fall for the hype. If you want a good, honest work at home job, look into at home online typing jobs. If you know how to type and can navigate the internet, a typing job just may be the perfect fit. It is easy to do and compensation is based on how much you produce.