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[DavidM]

Originally Posted by Brian Turner

Isn't MLM essentially equivalent to "Pyramid scheme"??

The way in which your downline theoretically grows may resemble a pyramid but a "pyramid scheme" is different than MLM. Basically an MLM is defined by any affiliate marketing program where you benefit from affiliations two levels and more below you counting that the first level is your direct referrals. If you count yourself as the first level it is defined by a program where you benefit from 3rd level affiliates and so on.

[DavidM]

I forget to mention that "pyramid scheme" is a term that has gained an individual connotation even tough MLM may resemble it. I don't know much about pyramid schemes tough. Sorry. I just don't remember as I know what it is deep inside my head, but deep enough not to able to explain.

[bumfluff]

As I understand it, the main difference is that a pyramid scheme mainly makes its money from signup charges, where an MLM makes money from the sales themselves. The lines aren't clear though, as most schemes of both sorts mix the two methods.