Type of Scam

Multi-Level Marketing (MLM)

Definition

A business model where participants earn money by selling products and recruiting new participants. While some MLMs are legitimate, many operate like pyramid schemes where most participants lose money and only those at the top profit.

Real Examples

1Amway, Herbalife, and similar companies
2Essential oil companies like doTERRA and Young Living
3Many 'work from home' opportunities

Related Terms

Pyramid Scheme

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