Difference Between Ponzi and Multilevel Marketing
A Ponzi scheme is an illegal investment scam in which returns are paid to old investors with money from new investors instead of from legal business activities. It needs a steady stream of new investors to stay alive, and when there aren’t enough new investors, it falls apart. On the other hand, multilevel marketing (MLM) is a legal business model in which people earn commissions based on how much they sell their products or services and how much their downline members sell. MLM focuses on selling real products, which can help people make a steady income if the business is run legally.