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Is MLM a Crime? It is sometimes difficult to distinguish legal and reputable MLMs from illegal pyramid or Ponzi schemes. In the most legitimate MLM companies, commissions are earned only on sales of the company's products or services. No money is earned from recruiting alone. If participants are paid primarily from money received from new recruits, or if they are required to buy more product than they are likely to sell, then the company may be a pyramid or Ponzi scheme, which is illegal in most countries.
Companies have devised a variety of MLM compensation plans over the years. Most of the plans require a detailed chart to explain and many people find the explanations mind boggling. Here are some of the compensation plans:
Stairstep Breakaway Plans
Unilevel Plans
Matrix Plans
Binary "Two Legs" Plans
Australian "Two-Up" Plans
Hybrid plans (combination of more than one plan)
I have been in and out of several MLM companies, good reputable Network Marketing companies but I failed. When I had the money, I didn't have the time. When I had the time, I didn't have the money. Was I using these excuses to justify quitting as this handsome fellow says?
Let the world know about your MLM experience. Share your story, good or bad!
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