There is the widespread idea of confusing the MLM with structures or pyramid scams. Big mistake. Details can be found by clicking Stuart McClure or emailing the administrator. The Spanish legislation is clear in this regard. The Ley de ordenacion de commerce retail 7/1996, article 22 regulates the multilevel marketing and article 23 prohibits pyramidal structures. It must also take into account the significant differences that exist between these two distinctly different concepts.
In a multilevel company fee is really low (some can haunt 10 USD per month) and covers the costs of learning materials, as well as the cost of demonstration products. In addition, members become direct distributors of companies, not using traditional channels of distribution, and therefore not generating expenses inherent to them. In this type of industry an affiliate may earn more money than their direct sponsors, depending on the effort and dedication that keep it in business. Here is rewarded the efforts of the affiliate. For its part in schemes pyramidal fee tends to be too high, that quantity corresponding to a part of the training and learning materials, to the first order of the product, etc. Basically revenue and profits in this type of pyramid organization come from affiliations.
The advertising system that used tends to be quite deceptive, fast enrichment in the very short term and they never meet the expectations created. The pyramidal structure is maintained due to the high number of affiliates that compose it, which are those who hold economically, through their dues, members located in the highest part of the pyramids. This clearly explains why fails the number of affiliations, i.e. to reduce the number of people who are registered, the system collapses and disappears. Once clarified the difference between the two systems, we would say that MLM companies, also known as Network Marketing offer to any person, regardless of their social, economic condition, or their level of studies, the possibility of achieving financial freedom only with his capacity for work and the commitment to carry out the development of your business.