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How can difference pyramid scheme form multi level marketing and how pyramid scheme is hide by multi level marketing.

Updated on August 10, 2014

How hide the pyramid game technically?

Some players of pyramid game try to hide their pyramid game because it is prohibited in most of the countries. Not only that country rule defined it as a financial crime. They make a structure that seems to just like a multilevel marketing. They shows that they are selling something and giving a distributorship and authority to sale same or different product of the company. In this they are showing that they are selling product but they are not taking any recruitment fee. Okey, its not a problem. But it becomes a problem when the sold product is in very high priced. They sales low quality products with high price and they are giving distributorship or authority of selling the product. It is an indirect way of receiving the recruitment fee from the recruited sales people. The deduction of the real market rated price from the sold price is the amount of indirectly recruitment fees. For such kinds of activity multilevel marketing is becoming questionable.

How easily anyone can guess what is pyramid scheme and what is multilevel marketing

Thr basic point of pyramid scheme identifying is that an advance payment of recruitment fee and strictly rule of purchasing of goods with high price than normal. Offering of goods that is not infront of customer or he can not see it or even he can not able to use of the goods or services. Just for example, any one can offer you to buy a goods that is not in front of you, you are not visually seeing the goods or services. That is matter of doubt. The goods should be real existancy. If a product be the service of a website, its a real product. You can be user of the website and can enjoy the beneficial service of the product instantly after being the user of the product. Though, a proper differentiation of pyramid scheme and multi level marketing is very difficult, but yet it is important to think about the internal and basic themes of the program that can help someone to investigate the true things.

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