Educational Consumer Tips

Multi-Level Marketing

Author: Better Business Bureau

Multi-level marketing is a system of retailing in which consumer products are sold by independent business people usually in customers' homes.

Although it is possible to build a successful multi-level business with comparatively little start-up money, it is not a means of getting rich quick or easily. Watch out for pyramid schemes.

Pyramid schemes concentrate mainly on quick profits to be earned by recruiting others and largely ignoring the merchandise or service to be sold. The tragic aspect of these schemes is that they concentrate on and exploit people with limited means and limited knowledge of business.

Thousands of unsuspecting and trusting investors have lost millions of dollars by investing in pyramid selling schemes. Pyramid selling schemes are illegal throughout the U.S. Be wary of substantial start-up costs. Before investing get all the facts about the company and products. Check with your district attorney or State Attorney General's office.

For more information, contact:

Better Business Bureau
(800) 828-5000

This report is general in nature and is not intended as a Business Review on any company, service or product.