'LuLaRich' and pyramid schemes: 4 ways to tell if the company is a scam

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The Amazon series 'LuLaRich' chronicles the rise and fall of multilevel marketing company LuLaRoe and brings new attention to the multilevel marketing business model.

MLMs as"businesses that involve selling products to family and friends, and recruiting other people to do the same." MLMs are also known as direct marketing or network marketing businesses.

, the first international association aimed at preventing pyramid scheme-related fraud."... Almost everybody is going to lose. But the people who are at the top of the platform will make a lot of money.""It's an endless chain:" FitzPatrick said that the most obvious sign of an MLM is that sellers are pressured to recruit other sellers, from whom they will then make money.

The fourth hallmark, FitzPatrick said, is how and what a person gets paid. The vast majority of people lose money. Only about one-quarter of people involved in MLMs make any money, and that money can be quickly eaten up by the need to purchase more merchandise.

 

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