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Is multi level marketing illegal

Updated: 10/23/2022
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13y ago

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It is illegal if done one way and it is perfectly legal when done another way. Basically if you follow the FTC's recommendations, multi-level marketing can be perfectly legitimate and profitable for people who are able to recruit and sell products and services. In fact, on March 27th, Donald Trump will shock the nation by promoting a network marketing opportunity on national TV so, yes, if it is a legitimate business opportunity there is nothing illegal about direct selling through multi levels of people. The important thing is that you are not being paid for recruiting people (from the sign up fee) but from your performance selling legitimate products and services and providing the same biz opportunity to others.

There are many legitimate multi-level marketing companies in the U.S. that have been around for years or even decades. You just have to look. Be prepared that most people when they hear about MLM, just run. It's a stereotype that's hard to overcome because you always have a hard time convincing the public that something is legitimate. The tendency is for people to assume it isn't, until they see your financial success, then you score points in your favor.

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