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MLM And Pyramid

MLM and pyramid marketing are often confused.

Sometimes MLM compensation plans are referred to as a pyramid scheme.

Let me clear up once and for all why MLM opportunities are not a pyramid.

In a pyramid scheme the person on the top makes all of the money. In MLM programs you are sponsored into the business opportunity and are placed under them.

The person who sponsored you is going to make more money than you because you can never pass them in a pyramid scheme. Not so in MLM.

This is the key difference between pyramid schemes and multilevel marketing compensation plans. If you build a larger business than the person who sponsored you into your business you will make more money and actually pass them up.

This could not happen in a pyramid scheme.

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