Companies selling through true MLM (Multi-Level Marketing) are legal. However some companies that claim to be MLM have questionable practices that may at least border on Pyramid Schemes. Pyramid schemes are illegal.
My hypothetical example below, based on the Unicity MLM structure, shows that over 85% of the retail price of an MLM product may be used to pay for commissions and bonuses etc.
As a result of the profit margins/commissions/bonuses/rebates paid out, customers may pay several times the actual true price of a product (price including reasonable profit margin if it was not MLM) when buying an MLM product. MLM products are definitely not cheap and do not represent value for money.
MLM products are very expensive. How much do you think has to be added to the actual cost of the product (including reasonable profit margin if it was not MLM) to pay for the ‘income streams’ in…
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