Multi-level marketing organisations offer their products to customers through people rather than through retail outlets.
Distributors are not employees of the company in the MLM model. Instead, they're small-business owners that build their own distribution networks to assist them in selling their goods.
Pyramid schemes, rely on the ongoing recruitment of dues-paying members to stay afloat, even if this means members must continue to buy things they may not be able to sell.
To be compliant, an MLM must follow the 70 percent rule, which states that "at least 70% of all products supplied must be acquired by non-distributors."
According to the Consumer Awareness Institute, 99 percent of people who participate in MLMs lose money.