What is the difference between a business opportunity and a pyramid scheme?
A. Some people confuse the business opportunities of Amway®, Herbalife®, Shaklee®, Mary Kay®, Avon®, The Video Game Club® and other similar companies with disreputable pyramid schemes. However, there are major differences, which have been officially recognized by the US Federal Trade Commission. Multilevel or “network” marketing is a lawful and legitimate business method that uses a network of independent Members to sell consumer products and services supplied by an established company. Members merchandise products to consumers, not in fixed retail stores, but through person-to-person relationships between business owner and customer. Members can also build and manage their own sales-force by recruiting, motivating, supplying and training others to sell those products and services. Compensation then includes a percentage of the sales of the business owner’s entire sales group as well as earnings from their own sales to retail customers. Pyramid schemes are illegal scams in which partic
