Does a Pyramidal Form of Business Legal Or Not?
By rbdescartin
@rbdescartin (616)
Philippines
December 5, 2010 10:21pm CST
There are lots of people says that MLM or Multi level marketing is not legal or a scam because it is in a pyramidal form. I don't agree with them because I am an associate of one of the global mlm company with an excellent product let earn extra income while doing it both online and offline in a part time job. What is wrong with the pyramidal form? Have you seen any company that is not in a pyramidal structure? Any company that is not in a pyramidal structure will not stand and will collapse.
3 responses
@louievill (28851)
• Philippines
6 Dec 10
A pyramidal form or ponzzi scheme is illegal and a scam if you based it on this: There are no real products that you sell or no tangible investments where people's money go to. This is often referred to but not limited to money investment programs. The one who starts the pyramid recruit people who then recruit people under them and so on. the pyramid favors those on top because they use the money of those under to pay other members, you'll continue to recruit or invest because in a way you are getting paid and made to believe that the money came from profits the company made from investing,while in fact it is peoples money down the chain. It's a given that this business model is bound to collapse with those that join last sustaining the greatest loss and the pyramid starter gaining the most and ends up running with everybody's money .
@rbdescartin (616)
• Philippines
6 Dec 10
But there are also businesses that has a product but you can still consider it as a scam if their products they gave is not as equal with the money you invested, some of them will ask you with the big amount of money with the small and not quality product in return.
@rbdescartin (616)
• Philippines
7 Dec 10
Yes I agree with you to that, because I have seen lots of MLM company that the amount you paid is not worth to the product that you will received and I am not joining that kind of company.
@louievill (28851)
• Philippines
6 Dec 10
It is your responsibility to examine what you are getting into thru better judgement, if you think a kit or product they are selling is too expensive or is not worth it , then why push thru with the transaction in the first place, it is you who controls your money not them , if you willingly hand it over to them, then they control it but that's your look out. The principle is always the same and never changes even if you are just buying fish in the market.
@visavis (5934)
• Philippines
6 Dec 10
Pyramidal form or MLM is legal as soon as there are products involve and the members are all legally received money and product to sale. Yes there are various MLM busines but scam they are after only the money of the member without any product to sale.... see you around
@rbdescartin (616)
• Philippines
7 Dec 10
You are right visavis, as long as you are receiving product in exchange to the money you paid, and they are not only for the money but for the purpose to help people to have a better life.
@jepoi17 (118)
• Philippines
6 Dec 10
pyramidal business can be legal and not
legal: means it under gone legal process from the registration up to recruitment
legal pyramidal business shows all the necessary information that the members should know
all papers must be transparent that both parties are inform from the form of business and
how it operates.legal business are those separate from business its entity and personal
interest who operates it, we should bare in mind that business are sole entity where it
has its own identity.
if you have doubt with the pyramidal business you are in the you must check its background
through internet sites and it must have a base/general office where they conduct its meeting
and other seminars, personality that run the business should be reliable and professional,
members should also reliable and not just a mere story of the other members.
legal business should only discuss legal matter and must also pertains mostly on business
and not outside business.
not legal: is the opposite of these, there are many pyramidal business existing now a days!!
the legality of that business lies beyond to your hand and own understanding!
guided by principle that "there's no cheater if there's no one being cheated"
@rbdescartin (616)
• Philippines
6 Dec 10
You have made a great explanation with really mean of a legal business and I am agree with to that, a legal business is transparent to all its transactions and their business operations has been approve with the trade and industry department of a country where there are operating.
