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MLM vs Pyramid Scheme - Know the difference!

Alright folks, been seeing a ton of posts about MLMs being pyramid schemes. Here's the 411: not all MLMs are pyramid schemes but all pyramid schemes are def scams.

  • MLM: You sell products AND recruit people. More emphasis on selling real products.
  • Pyramid Scheme: It's all about recruiting. The 'product' is often BS and there's no real consumer sale happening.

Stay sharp, do your research before you join any of these 'business opportunities'.

Submitted 1 year ago by pyramid_scheme_hater


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MLM's are like playing financial hot potato. Whoever's left holding the bag of unsold products loses. There's a reason why retail works - it's a clear transaction, not a convoluted mess of 'networks' and 'downlines'. Stick to traditional investing, peeps.

1 year ago by DollarAndSense

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The real question is - why risk it with MLMs? Just get a regular job. These companies prey on people who are desperate for cash or dreaming of easy money. You’re better off staying away from both MLMs and pyramid schemes.

1 year ago by RealTalkRichard

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so like, if MLMs are legal that means they are a legit way to get rich right? i know someone who's offering me to join this exclusive health product thing, looks legit and they got a cool car from it.

1 year ago by QuickBuckDreamer

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Important distinction indeed, but both MLMs and pyramid schemes capitalize on networks of friends and family which can be harmful. Even if MLMs have a product, the focus often shifts to recruitment to make real money, which is unsustainable. Always look at the company's income disclosure statement - if the vast majority aren't making decent money, big red flag.

1 year ago by PyramidSlayer

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Been there, done that with an MLM. Thought I was smart enough to make it work, but nope. Just ended up with a garage full of stuff no one wants. Lesson learned, these things are just money pits in disguise.

1 year ago by NotGotCashToLose

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I was just invited to one of these 'exclusive' MLM parties and the host wouldn't stop badgering me about joining. They kept talking 'bout how it's not a pyramid scheme since there are real products. But why the hard sell on recruiting me then? Something feels off.

1 year ago by MomBoss101

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Pyramid scheme or MLM, doesn't matter. They're both traps, man. They promise you'll be rich without a real job, but all they do is take your money and waste your time. I've seen friends lose thousands. Steer clear y'all.

1 year ago by StayWokeFolks

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Honestly, some MLMs are so close to being pyramid schemes it's scary. Yeah, they've got products, but if you look at where the real money's coming from, it's all about getting more people to sign up. Just watch out cause that line between the two can get real blurry.

1 year ago by HustleHard87