I am involved in no MLM programs, so I don't have a horse in this race. I see a difference in MLM and pyramid, or Ponzi, schemes.

Saying the only difference is that MLM sells a product is missing the point. MLM is a way of selling more of a product. A Ponzi scheme is presented as an investment. An MLM program is presented as a business. A Ponzi scheme promises a return for investing. If you give me $100, I will give you $200 back. MLM doesn't promise anything, but allows you to determine the profits by how hard you work, and how good a sellsman you are. Any MLM program that claims you don't have to sell anything is, in my opinion, in danger of being or becoming a Ponzi scheme.

Some schemes cloud the issue by offering a token product. That is a product that no one really wants, but is presented as the reason for the program to exists. I have seen several of these around the Internet. Some of them are doing very well. I don't trust any of them. Look into any opportunity carefully. If the program exists more to recruit than to sell, then I recommend caution.

You must be an expert salesman, of a product or yourself, to be successful in MLM. If you are looking for an easy way to make money or to retire in two years, MLM is not the answer, and that is why so many people believe MLM and pyramid schemes are the same. Many MLM companies over-promise. When the new member does not succeed in a few months, he no longer believes in the program and thinks he has been scammed.

Affiliate programs are huge right now. What if I made a program and said if you put a banner on your page and someone purchases through it, I will give you money? If you get someone else to put a banner on his page, and someone makes a purchase, I will give you money for that too. Few people would have a problem with this. I'm not making crazy promises. I'm just giving you a way to make some extra money. This is the same thing as an MLM program. Perhaps I will do this, and call it the "Enhanced Affiliate Program." Doesn't that sound better than Multi-Level Marketing?

Cheers,

Jason