Pyramid and Multi level marketing schemes are anything but illegal.
There are few legal MLM businesses; however they
are made to fit into the legal framework compliant of the local laws.
Readers might be surprised on how I term them illegal irrespective of
how genuine their business is or how life changing business model they employ
because of the underlying mathematics the pyramid schemes employ, all the
pyramid schemes finally collapse.
Hypothetical Example:
In a typical MLM
scheme, one is required to deposit an initial subscription fee or required to
purchase a product. Let’s take an example of the subscription fee being Rs.
10,000
It is illegal to just collect money, so many
fly-by-night MLM
operators promise to sell products worth the subscription fee. 99.99% of the
time the value of the product will be inflated highly.
Typical examples of MLM
products are ebooks, training material, forex trading material, herbal
products, skin rejuvenating creams, health products, solar products etc
Now you are required to sell the same set of items to two people in a
pyramid fashion.
