To Attitude Wins:Wow, you really know alot about this subject.
To Banker: The Government actually banned both Pyramid Selling
and MLM, but about 2 years ago, it did an about-turn and relaxed its rule about MLM, making MLM LEGAL.
The main difference between MLM and Pyd Selling is that in Pyd Selling, there are no goods involved in the transaction. Basically, in Pyd Selling, what you do is to get members to join your group while promising them great rewards in monetary terms. To join, they will have to contribute large sums of money that amounts to the thousands. This money will then be distributed to other members in the group as their "reward" for joining the group. It's no wonder that the Pyramid will eventually collapse.
In MLM, you basically get commission for products that you sell. You are offering a genuine service/product, so it is not a scam. However, there is only a fine line between MLM and Pyd Selling, so, you have to do some research and make sure that your
company is really legit.
There were actually a couple of reports in the Straits Times about people who did well in MLM. There was this couple joined "Nuskin" and eventually made enough to go full-time.(And they are selling a product that can only be sold to half the world's population
) But of course there were some people who were not so successful in it...I guess you just have to know if you are suitable to be a salesman or not...
Some people ask,"If the product is so great, why not just advertise/rent shop space?" Well, the reason is simple: take the "nike" shoe that you buy in the shop-about 80% of what you pay for goes to advertisers, salesgirls, middleman, rent, electricity bills......MLM companies simply saves on all these and pays the customer who does the selling for them...