#MLM #PyramidScheme #MultiLevelMarketing #Capitalism: "Officially, of course, a multilevel marketing company is distinct from an actual pyramid scheme. But, as longtime MLM critic Robert FitzPatrick argues, the boundary between “legitimate” multilevel marketing and straightforward fraud is porous at best. As per FitzPatrick, the US government defines the legal variety as “a type of enterprise in which participants can earn money from their own retail sales and from commission overrides based on the retail sales of other participants they recruit in a genealogical chain.” The problem, as he observes, is that the FTC has never actually identified a single MLM company that meets such a definition. “Since,” FitzPatrick writes, “no one in MLM actually does gain or could gain sustainable profit from retailing, no one also gains income from retail sales of those recruited. The legitimate, retail-based MLM is as real as a Unicorn.”
In truth, it’s hard to think of a better microcosm for capitalism than multilevel marketing, or a more apt depiction of why its foundational mythology is so obviously a fraud. In the world of MLMs, all of us are just temporarily embarrassed millionaires. With sufficient effort and the application of vigorous work ethic, anyone and everyone can be their own boss while spreading the good word far and wide so that others can rise too. According to MLM’s oleaginous prosperity gospel, sales reps get to help others by selling useful products and enriching themselves, engaging in a perfect symbiosis of enlightened self-interest. Those who lose money or complain are, by extension, either lazy or otherwise personally defective."
https://jacobin.com/2021/10/multilevel-marketing-scam-lularoe-pyramid-scheme-capitalism-myth