Although many authentic, legal and recognized companies have generated millions of sales and have meant a profit opportunity for many people in the world, whether working full time, part time or as an extra activity, there are still confusions and doubts in many peoples' opinion when talking about Multilevel Marketing (MLM).



The operation of a Multilevel Marketing company consists of two main parts; the sales that as agent consultant of the company you make and the commissions that you receive for all the new users that you add to your network.

There are variations in each companie's systems, there are prizes, discounts and commissions for goals achievement, but those two parts are the basic structure of a MLM company and well-formed direct sales.

The MLM and direct selling companies aim is to increase their number of sellers to obtain gains through the sales of products that every time are sold more. The pyramids seek to obtain money and attract more people who invest theirs.


Since the pyramids are based on an almost identical structure, composed of sales forces of people who are adding to these, it is very difficult to identify a pyramid of a legal MLM and direct selling company.

To avoid falling into these fraudulent structures, people must investigate in detail before joining a company they do not know well, except if it is the case of a recognized company which there are many options out there.

It is always recommended to all people who wish to become consultants and work in direct selling and MLM to choose companies legally formed. It does not necessarily have to be a famous or big company. There are many legitimate MLM companies that are constantly emerging. The recommendation is to learn well and make sure it is a legal company and not a pyramid.

S4DS Software offers an efficient and guaranteed service for companies that implement MLM, Direct Selling, Ecommerce, CRM among other functionalities.

This post is based on the article "The Difference Between MLM and Pyramid Schemes" by Susan Ward

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