Pyramid Schemes Legitimacy

 Pyramid Schemes

are, however, fraudulent schemes, disguised as an MLM strategy. The difference between a pyramid scheme and a lawful MLM program is that there is no real product that is sold in a pyramid scheme. Participants attempt to make money solely by recruiting new participants into the program. The hallmark of these schemes is the promise of sky-high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same.

Legitimacy

Learn more about the company, by finding and studying the company's track record. Do an internet search with the name of the company and words like review, scam, or complaint. Look through several pages of search results. You also may want to look for articles about the 

company in newspapers, magazines, or online. Find out:

how long the company has been in business
whether it has a positive reputation for customer satisfaction
what the buzz is about the company and its product on blogs and websites
whether the company has been sued for deceptive business practices
Check with your state Attorney General for complaints about any company you're considering, although a lack of complaints doesn't guarantee that a company is legitimate.