What's the difference between a Ponzi Scheme and Multi-Level Marketing?I

[Suba]

The terms Ponzi schemes and Multi-Level Marketing (MLM) are considered by people to mislead or harm many people, these two terms promise large returns in a fast time, so many people fall into these two business traps. Almost all types of fraudulent investments that I have encountered use these two types of businesses. So what's the difference between a ponzi scheme and an MLM?

 

[jetsaints30]

The main difference is that a Ponzi scheme is a fraudulent investment that relies on new investors to pay off old ones while multi level marketing is a legitimate business model where people sell products and earn money through commissions and bonuses.

 

[Bisolami]

The terms Ponzi schemes and Multi-Level Marketing (MLM) are considered by people to mislead or harm many people, these two terms promise large returns in a fast time, so many people fall into these two business traps. Almost all types of fraudulent investments that I have encountered use these two types of businesses. So what's the difference between a ponzi scheme and an MLM?

I do not know much about all these schemes but I know that they are scam schemes and you will surely lose your money into it

 

[Jordan]

My opinion, they are basically the same.

Most entry level people in an MLM loose money and are the ones making money for those at the top of the pyramid. I guess the only difference is, an MLM is a legal ponzi scheme.

 

[Magnus2022]

Ponzi scheme and multi level marketing follow the same procedure. The only difference is in the name. A lot of scammers are not using the name ponzi scheme again, but prefer using multi level marketing or another ambiguous name to confuse people

 

[uptrendfinancialsignal]

They are the same because both involved high risk and you could lose your money in the blink of an eye.

 

[Bisolami]

They are the same because both involved high risk and you could lose your money in the blink of an eye.

Both of them have slim chances of you getting your money so you need to be very careful

 

[eldavis]

Its like asking asking someone what's the difference between yahoo and money laundering. They are the same thing but done differently. I be this is also the case here. The difference is the process on how they operate.