How Do MLM Companies Defend Themselves Against Being Classed as Pyramid Schemes? - How Money Works | How Money Works

How Do MLM Companies Defend Themselves Against Being Classed as Pyramid Schemes? - How Money Works | How Money Works

From How Money Works by How Money Works

July 21, 2026 · 15 min

About this episode

The episode discusses how MLM companies defend themselves against being labeled as pyramid schemes despite criticism and their controversial business practices.

How Do MLM Companies Defend Themselves Against Being Classed as Pyramid Schemes? - How Money WorksSign up for my newsletter https://compoundeddaily.com 👈Multi-Level Marketing Companies or MLM’s rightfully get a fair bit of criticism in the news, across social media, and even in social groups that are aware of their less than upstanding business tactics.However, despite this almost universal bad reputation, Multi Level Marketing Companies have grown in size year on year, bringing in an ever-larger pool of unsuspecting victims.This reality flies in the face of what the critics often say about such schemes, which is that they are fundamentally unstable pyramid schemes that are mathematically guaranteed fail.If that was the case, then this now decades old industry filled with decades old companies is sure taking a long time to live out the apparent certainty.So were the critics wrong about this one? Well as regular viewers of the channel may know, I hate video’s that drag out the a simple question unnecessarily. So the short answer is no, they are not wrong about the industry as a whole, but they do get a lot wrong about their day to day operations, and this public misunderstanding…

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Organizations: Multi-Level Marketing Companies

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