I KNOW it is legal. Our thoughts on the matter are really irrelevant, because the courts have already ruled that MLM is legal as long as commissions are being paid on the sale of a product rather than the act of recruiting. There are some out there that seem to have created an MLM company and just threw in a product to make it seem legit. That s unfortunate, because it makes the rest of them look bad. Most of those don t stay around that long though, because they just aren t good and stop growing or regulators catch on and shut them down. My company in particular is NYSE traded, endorsed by former Attorneys General, notable business leaders and has been featured in many major national business and financial publications. We are a product centered company, but recruiting is heavily emphasized. I do not know of any sales organization in the world that does not have a multi level compensation plan. Those who THINK MLM is illegal and won t use products from an MLM company because of that should never buy a car, insurance or any other product that a salesperson sells to them.
Those that say all MLM companies aren t legit don t know what they re talking about or follow others that don t know what they re talking about.The confusion comes from the word pyramid as that what the compensation structure looks like. A pyramid scheme is illegal and that s not what an MLM is.If you can imagine an MLM company that is exchanging only money without any products or services, then that would be an illegal scheme.However, legit MLM companies do offer products or services and that s what makes the difference.
