been branded as fraudulent due to the presence of pyramid marketing, but there are clear differences between the two, the objective being one of the main ones . Differences between pyramid marketing and multilevel marketing One of the main differences between pyramid marketing and multilevel marketing is that the first is illegal while the second is not , since the pyramid aims to attract participants to grow the profits of the company in an illegal way, while MLM focuses on honestly growing sales of your product or service. But there are more differences:
1. The products or services being sold When we comment that profits grow fraudulently in the pyramid business , it is because the products or services offered do not exist . These have always suffered some type of incident, so the client pays clipping path service for something that he will not receive. On the other hand, in a multilevel business, real products are offered that comply with the regulations of the country where it is marketed and have a return guarantee . In fact, one of the main objectives of multilevel marketing is that customers talk about the product or service to increase sales ,
so it must be of high quality and deliver on what is promised. 2. A fee to enter the company As we have already mentioned, the objective of a business that is based on pyramid marketing is not to sell a product or service, since it does not exist, but to attract participants. These participants must enter a fairly high fee to be part of the company and become investors. On the other hand, and although in multilevel marketing the income of an amount of money is also required to be part of the team, this is much lower. In addition, in this case we are talking about partners, not investors .