MLM Marketing Vs Pyramid Scheme — Which is Scam? A case study!

ARM MLM Software
4 min readApr 19, 2021

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Pyramid Scheme: It is a business model that enables each member to enter the project through the promise of payments or services.

  • Basically, this is a fraudulent activity and the promise of higher returns does not really happen.
  • In fact, no sales of the product have taken place, but the appointment of new members should be compelled to generate revenue.

Others included in the structure of the plan to collect victims and collect money, which would eventually go to the top of the pyramid. Because recruitment is focused solely on multiples, most members cannot profit, which adds insult to injury.

It is considered illegal in many countries because it closes quickly and in many cases arresting fakers is an international issue. Finally, pyramid schemes have been under different cover for at least a century, but participating in this program is a crime under the criminal code of many countries.

MLM Business Plan:

Essentially, Multi level marketing is NOT a scam. Its transparency functions are vastly different than a pyramid scheme where each member can easily view all business activities.

mlm business plan

Also, MLM is legal in most countries and there are no pyramid schemes.

Product sales only happen to make more money than hiring a member. There are often special rewards available for registering a certain number of new numbers.

If you subscribe to members, you can earn an extra percentage of bonuses generated by those you brought into the system. All of this is possible when you enter the legitimate MLM business, and you will be able to connect directly with the downstream consumer of your products.

Multi level marketing is a fantastic business strategy, offering vast opportunities to make money without sweating. Sometimes training on easy sales methods to trigger product promotion.

Being part of a successful Multi level marketing company is lucrative and tension-free, but be aware of some opportunities that have shaped themselves to flatten your wallet and spoil your dreams.

When researching a potential business opportunity, you should gather as much information as you can about MLM products and their functions. Also, choosing software for your business operations is a strong recommendation!

Things to consider: When choosing MLM software as a business solution!

MLM software is not just an automated online product for managing business operations, it is a decision-maker for many reasons that will help you increase the success rate of your online business.

Therefore, it is important to consider when selecting an MLM website software to verify the quality of its performance to ensure it provides a complete solution for business development.

Listed below are the things to consider before purchasing MLM software,

Analyze your business needs:

  • A thorough analysis of business activities will help you in many ways and guide you on the right way to select relevant products to perform better in business operations.
  • This is a necessary first step for any business start-up, especially in Multi level marketing, before any purchase is made.

Customization takes place:

  • Use the available customization as a feature instead of tailor-made products to implement your ideas in your best business.
  • Customization according to one’s own vision makes a tremendous sound in business progress.

Consider security and safety issues:

  • Make sure custom MLM software is insured to work in high security and high-security systems.
  • In this way, the product will implement the essential features to protect data from third-party authentication.

The benefit of Cloud-based AI system:

  • The advantages of cloud-based solutions are almost numerous to list, including focusing on scalability, reliability, flexibility, and cost-effectiveness.
  • For maximum flexibility, an integrated MLM solution should be developed in the Cloud Ready API layer that provides complete connectivity.

Multi-task support system:

  • Ensure the provider is committed to software configuration, orientation, maintenance, and backup services, and after-development services.
  • Ensure multilingual support with multiple payment gateways as additional services that can be provided by the developer side.

High Quality at Low-cost:

  • There is a lot of low cost MLM software in the marketplace to have an eye-catching effect on buying.
  • But stay away from the cheap.
  • Finding the best quality that is expensive is a reasonable decision to avoid issue rates in its performance once you buy it.

Do research on Company’s portfolio:

  • Experienced developers in the industry help you improve your chances of getting high degree results and decide what you want to do with business development.

Choose a custom solution development company to buy MLM software with the expertise and resources to deliver an exceptional application experience. Joining a business arm with well-respected professionals is an added benefit to good business growth at the right time.

Overall, find the best MLM solution provider for its customer support and its willingness to customize solutions to your needs. Learn more about this for your direct sales business with ARM MLM software.

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