What Is The Difference Between MLM and Pyramid Schemes?

A college friend calls you after so long and asks you to meet up after serval years!? After a little chit chat, he or she introduces the products and offers you to join the MLM marketing business. 

Sounds so familiar? Right! Let’s discuss the difference between MLM and pyramid schemes.

Multi-level Marketing or network marketing is somebody selling products to the people – usually by word of mouth. The fundamental concept behind the MLM business is to encourage a maximum number of distributors for the products or services and increase the sales team. The distributors will get incentive on the sale of the product as well as compensation for sales of their volunteers. MLM company will offer you the structured such that incentive to paid distributors at various levels. 

Pyramid scheme definition

Pyramid Schemes are the fraudulent schemes, disguised as an MLM plan. The differentiation between a pyramid scheme and a lawful MLM program is that there is no real product that is sold in a pyramid scheme. Partners strive to make money solely by hiring new partners into the plan. The sign of these schemes is the word of sky-high profits in a small period of time for creating nothing other than giving over your money and preparing others to do the equal. This is the pyramid marketing technique. 

Looking for best MLM companies to join? Below mentioned MLM companies are the best choices to join this business. These are the top MLM companies and they have a very strong market reach with millions of people and not even this, they are also providing training session to enhance their selling skills by experts. These training sessions happen through online or offline modes to help you to understand the word of mouth marketing. 


Top MLM companies

  1. Amway India
  2. Herbalife
  3. Forever Living
  4. Modicare
  5. Asort
  6. RCM
  7. Vestige
  8. Oriflame


MLM system is a legitimate business strategy and with this business, no joining fee is required but to purchase the products you need to pay money. As a distributor, any individual need to sell products or services provided by the manufacturing company to sell them with word of mouth. For this, a distributor gain money or incentive by the company and some specific companies like- asort also giving rewards for achieving targets, like- abroad trip, electronic gadgets, bullet bike etc and many more things.


If you have a desire to join this business choice right company and check their website in order to escape any fraud.