Fraudstorytelling | Weekly filmtips | June 17, 2022
Title: The Multilevel Marketing Cults: Lies, Pyramid Schemes, and the Pursuit of Financial Freedom
Producer: James Jani
Tagging: #Businessethics, #Pyramid, #Companymanagement, #Tradingindustry, #Pharmaceuticalindustry, #Judiciary
MLM versus Pyramid schemes. Can you spot the difference?
Being approached by a family member or friend for what seems like a fantastic job opportunity can sometimes also bring a less fun side when it comes to companies that work with the MLM strategy. Sometimes something feels too good to be true, but we fall for it anyway. It doesn’t seem illegal, so we’re giving it a shot. Today, we’d like to share this explanation film by James Jani, which focuses on the risks associated with working for multilevel marketing (MLM) companies. You will also learn what pyramid schemes are and how to recognize them. You can then determine whether there is a difference. However, it is up to the law to determine when marketing crosses the line into a pyramid scheme.
MLM is a strategy used by some direct selling companies to encourage existing distributors to recruit new distributors in exchange for a percentage of sales generated by their recruits. This strategy is also known as network marketing. There’s nothing wrong with that in itself: as a seller, you can make some extra money, and as a buyer, you can get a great product. It can, however, have a murky, “dirty” side. This strategy is not new; it has been used for a long time and is still being used today.
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