Multilevel marketing (MLM) is a retail channel of distribution that has a negative image in the minds of many individuals and is under increasing scrutiny by government regulatory agencies around the globe. It is frequently alleged that multilevel marketing companies may be illegal pyramid schemes, and that such companies are unethical. One major concern being raised increasingly is the extent of so-called internal consumption. This paper addresses those characteristics of multilevel marketing that are under attack and argues from an objective, not emotional, perspective that claims that MLM organisations are inherently pyramid schemes and unethical are misplaced.

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