The Truth Behind Multi-Level Marketing Businesses and Pyramid Schemes

Multi-level marketing (MLM) has long been touted as an opportunity to achieve financial freedom and entrepreneurial success. However, not all that glitters is gold. Understanding the fine line between legitimate MLM businesses and illegal pyramid schemes is crucial. As of 2022, the Federal Trade Commission (FTC) reported that over 99% of participants in MLMs lose money. This alarming statistic underscores the importance of distinguishing between legitimate opportunities and fraudulent traps.

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