Is MLM unethical?

Belgium
September 25, 2007 3:57am CST
I wonder if MLM is unethical. Some people say it is but then again any business is multilevel if you think about it, you have shareholders, CEO, upper management, middle management, lower management and workers. Profits from the sales are not equally distributed to these employees. The strange thing is this is never put to discussion. Some shareholders make money on the back of employees with relative low risk as they use hedgefunds to protect their investments without ever working a single day! As a matter of fact they even earn in markets that go down!
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3 responses
@AndriaToh (1268)
• Malaysia
25 Sep 07
I guess some mlm have the problem where the money is earned on recruiting alone. There is no real product involved. To me, it is like a chain letter where the idea is just to get as many as possible.
1 person likes this
• Belgium
25 Sep 07
exactly that's also where I draw the line if no extra service or product is involved it's a plain pyramid
@Arkadus (895)
• Canada
21 Jan 08
I agree, there's nothing wrong with MLM in theory. It's just so easy to abuse that there's all kinds of horror stories about what can, and in some cases has happened.
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@mizrae (587)
• United States
25 Sep 07
I don't believe for one minute Multi-Level-Marketing is unethical. Only individuals who try to operate "ponzi" schemes are. As you stated, corporations have the same type of pyramid set-up, the difference is the lowly employee can never reach the top to make the big bucks, but any individual with the right work ethics and motivation can with a reputable multi-level or network marketing business.
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