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I was assigned to MLM project in work, have some questions
(startrek.website)
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this post was submitted on 07 Aug 2023
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Asklemmy
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Multi-level marketing is a kind of pyramid scheme, they're only legal because existing anti-pyramid scheme laws only prohibit "businesses" that don't actually sell any products, and make all of their money through recruitment.
MLMs get around this by recruiting people to "sell" products, but recruits must pay for them in advance (almost always at a massive markup) and the products are typically so overpriced and/or poorly made that many of them go unsold.
So, almost all of the profit of those at the top of the pyramid comes from their downstream recruits recruiting more people to "sell" the product, even though product sales are completely unrelated to the success of the scheme as a whole.
So like... NFT communities?
Hey hey hey let's not get ahead of ourselves. NFTs aren't pyramid schemes - Digital goods still count as a product.
They're money laundering. Clear difference.