One of the common statements made by people in favor of multi-level marketing is that it is just like corporate America. We call MLM a pyramid scheme, and corporate America is a pyramid too! That’s simply not true.
While the SHAPE of the hierarchy of people looks like a pyramid in MLM and in corporate Amercia (one person at the head of the company, a few below, managing several below them, and so on)… that is where the similarities end.
Multi-level marketing is PAY TO PLAY. Everyone has to PAY MONEY in order to participate, and almost everyone loses money in MLM. In contrast, no one pays to get hired for a real job. Instead, the company hires the people and pays them every single payday. In corporate America, everyone makes money (although at different rates of pay), while in MLM almost everyone LOSES money.
Below is a snippet of my interview on HuffPost live, talking about this issue:
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