The Multi Level Marketing plan or MLM is called a binary plan. This plan allows distributors to have 2 or more front-line distributors. If a distributor sponsors more than two distributors, the excess are placed at levels below the sponsoring distributors front-line. The primary limitation is that distributors must 'balance' their two down-line legs to receive commissions. Due to this working method, the Multi Level Marketing is also known as Pyramid Scheme.
Critics claim that Pyramid scheme is highly unlikely to make money for anyone but the very top of the pyramid and so either required to give 100% effort or should be completely avoided. Hence, when people fail in achieving the aim, they land up calling it a scam. But it does not mean that there is no Pyramid scam exists, there are scammers who scam innocent people in the name of this scheme as well.
Lets see some of the latest and most popular scams :
: The West Coast Wellness Diet is yet another Multi Level Marketing, or MLM, scheme. In other words it’s a legal Pyramid Scam that offers men bonuses for signing new recruits.
: This is a legitimate company that provides its members with exclusive and never before released information regarding several aspects belonging to different fields. Still, beware as scammers can anytime use its name in a scam.
: Zurvita is just like other MML companies, where in the business opportunity starts after you pay for your distributor license. But those who are not aware of MML business, when find that they will have to pay to get involved in the business straightly jump into the conclusion that it is a scam.
The other Popular MML Scams include :
