Originally Posted by Hostnetric
The real problems are those MLM's that focus on recruiting only as a means to make money. Eventually they dry up because there are no real products. These are your true scam artists.
Programs that promote recruiting and does not have a product are call Ponzi or Pyramid schemes, not MLM. Ponzi's are illegal because no product exchanges hands, only money.
With MLM, there is generally a product or service that is bought. Unfortunately, MLM gets grouped with the illegal schemes instead of understanding what it is.