The Entrepreneurial Mind:

One of my regular visitors asked me to write a post on multi-level marketing (MLM). His question: Is it a legitimate business?

Multi-level marketing is a system where people make money by getting other people to become “distributors” for a product. While some money may be made by actually selling the product, most money is made by creating layers and layers of people who are distributors working under your distributorship. You make the most money by the inventory and fees these folks pay as they sign up. The deeper the layers go beneath you, the more you can make. Some have called this a pyramid. Laws have been passed to limit the pyramid-ness of these businesses, but as always, businesses adapt to the new restrictions.