MLM Scams, Network Marketing and Pyramid Schemes | Nishan Blog |

What is MLM business?

Multi-level selling may be a strategy some direct sale firms use to encourage their existing distributors to recruit new distributors by paying the prevailing distributors a proportion of their recruits’ sales. The recruits ar the distributor’s “downline.” All distributors conjointly create cash through direct sales of product to customers.

What is pryamid scheme?

Pryamid scheme is also same as mlm but difference is pryamid scheme doesn’t sell products. People’s are told to invest money after you invest money  recruit more people to earn more commission.

Is it illegal?

In most of the countries pryamid scheme is illegal but mml is legal because of there products and services. Mlm companies try to hide pryamid scheme using their product as disguise but reality is they told you to invest money by showing product starter pack or any other ways .

What is the solution?

If you want to become rich you should have valuable skills and knowledge. If you don’t have better knowledge and skill  then best solution is by upskilling yourself . Learning  new skills which are valued

Normal job vs MlM?

Hope you understand about mlm scheme and how it work.
Now let’s go little deeply and learn clearly about

difference between normal job vs mlm

Normal job

1) job has a screening process.
2) Only people with certain skillsets are hired.
3) Money based on work (Fixed salary)
4) Normal company spend money on marketing and to make their products better.
5) Company earns majority of money through sales of products or services.


1) No screening process, anyone can join.
2) Money based on Number of people recruited(commission)
3) MLM doesn’t care advertising their products,They only focus on recruiting more people.
4) MM Company products are overpriced as compared to  as compared to normal company products.
5) MLM Company earns majority  of money through new recruiters.

How to identify MLM  Schemes?

1)Recruiting  more people is insensitive and Empowered .
2)Advancement in hierarchy of distributors is people, and vulnerable
achieved by recruitment.
3) MLM companies have more  levels than are functionally justified

How People are fooled?

MlM companies mostly target unemployed youth, housewives. They are sold Unrelastic dreams and Unrelastic promises. They claim that you will be enterprenure.
Reality is  odds of Winning in casino is greater than this.

Are all MlM companies are fraud?

Yes almost Mlm companies are fraud. But there are some companies which use mlm and sell goods products and  legit Mlm won’t force you to invest  to get commission.

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