Legitimate MLM Companies and Ponzi Schemes

By | June 7, 2013
Recent confusion after the arrest of top officials of a well known direct selling major in India has worried so many people who involved in the business.

Legitimate Direct selling industry estimated at doing business around Rs. 5000 crore a year involving millions of distributors and users.

In the meanwhile some ponzi schemes also targeting people in the name of a legal MLM company.

Let us see how to differentiate a legal one from the culprits.

A legal MLM usually gives commission on sale of products wheres an illegal one give on recruitment of new people.

A legal one does have money back guarantee on its products and business where as an illegal one don’t

.In a legal one, anyone can earn without recruiting others, by selling products to people outside of their network. Where as the only way to earn money in an illegal one is purely on recruitment

An illegal one is usually a quick rich scheme which promises huge return in short span of time where as a legal one pays purely on sales volume.

Illegal one usually sell sub standard products at high price without money back guarantee where as legal ones  sell good products with 100% money back guarantee.

Above all analyse about company history and promoters and then decide.

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