There is a new term making rounds with some confusion. This is off course MLM or multi level marketing in full and in summary meaning marketing your business by utilising relations with people who are either above you or below you.
Confusion begins when people begin to associate MLM with a pyramid scheme or cannot draw any significant differences. As we all know pyramid schemes cannot be classified as legitimate businesses since there are no tangible items for sale.
With pyramid schemes there just happens to be a few who make profits by some form of unexplained magic and that magic is people who joined later and lost essentially all the cash placed into the scheme.
MLM is better introduced as Network Marketing and the word marketing is key in the phrase since you are selling a product or service as opposed to other illegal schemes. MLM can be a great way of making personal fortunes as a start up business.