Reasons Why MLMs Are Worse Than Pyramid Schemes
- ๐ The average return for a victim of a pyramid scheme is around 90% of their invested capital, whereas the average return for an MLM is around 30% of their invested capital.
- ๐จ Even the people at the top of MLMs often struggle financially, with many losing money despite their high ranks.
- ๐ค MLMs make money by selling overpriced products and seminars, rather than through legitimate business practices.
- ๐ The financial figures seen on income disclosure statements are top-line revenue figures and do not account for additional expenses, which means even top members end up struggling financially.
- ๐ฅ MLMs target isolated cultural groups, such as Mormons and migrant communities, who are less aware of the industry's reputation and more trusting of their own community.