These direct selling companies began as single-level marketing companies but then adopted the multi-level marketing structure. MLM companies have traditionally been an excellent way for stay-at-home mothers and wives to earn a little side cash. Even if you love your spouse, your children, and tending the home, it’s always a great way to make your own money.
One thing MLMs are not is a pyramid scheme. Pyramid schemes involve the exchange of money without the sale or exchange of product or services. Receiving monetary compensation for signing up a sales person (distributor, consultant, affiliate) under you constitutes a pyramid scheme. Legitimate MLMs do not do this. Financially benefitting from signing up a distributor under you only happens when that distributor or their downline (distributors or customers under them) purchases product.
