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Four defining characteristics for identifying the elusive MLM pyramid

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Four defining characteristics for identifying the elusive MLM pyramid

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Dr. Jon M. Taylor of Salt Lake City has spent the last five years studying MLM pyramid schemes and has written a book on the subject.

He proposes four defining characteristics for identifying the elusive MLM pyramid.

1. A chaining hierarchy of distributors - more than is functionally justified - is recruited without area limits.

2. Distributors (far up the line from consumers) receive as much or more total remuneration per sale from the company as the distributor who sells the product. This leads to extreme emphasis on recruiting over retailing.

3. A few distributors at the top receive very large payouts from the MLM company, while the vast majority of distributors receive little or none. The losses (potentially billions of dollars) of the many are directly transferred to the few.

4. Significant purchase or recruiting quotas are required to maintain a paying position in the system.


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Four defining characteristics for identifying the elusive MLM pyramid
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