Is multi level marketing illegal?
It is illegal if done one way and it is perfectly legal when
done another way. Basically if you follow the FTC's
recommendations, multi-level marketing can be perfectly legitimate
and profitable for people who are able to recruit and sell products
and services. In fact, on March 27th, Donald Trump will shock the
nation by promoting a network marketing opportunity on national TV
so, yes, if it is a legitimate business opportunity there is
nothing illegal about direct selling through multi levels of
people. The important thing is that you are not being paid for
recruiting people (from the sign up fee) but from your performance
selling legitimate products and services and providing the same biz
opportunity to others.
There are many legitimate multi-level marketing companies in the
U.S. that have been around for years or even decades. You just have
to look. Be prepared that most people when they hear about MLM,
just run. It's a stereotype that's hard to overcome because you
always have a hard time convincing the public that something is
legitimate. The tendency is for people to assume it isn't, until
they see your financial success, then you score points in your
favor.