Originally Posted by HanMark

MLM, again, is just a product distribution channel or technique. Ponzi Scam, on the other hand, is the misuse and unsustainable business model using the MLM distribution strategy. Direct selling is a distribution channel as well, retailing is one, MLM is, too, another technique.

The person's mindset who potentially fails at MLM business:

People who see MLM as a quick way to profit without understanding that independent marketing is crucial and having a product you are comfortable with to market is the key to unlocking the potential in the MLM industry. As a result, they felt swindled when they are unable to achieve what they set out for and falling back on the very widely-known notion that "MLM's are scams", they instinctively think the business model is the flawed one, not their own individual problem. What truly amplifies the adverse effect is when the people who failed at this industry in their own terms had approached people to sell their product or talk about their business before. When it collapses, they quit and they tell their friends, "yea, it's a scam". And naturally, word spreads and immediately defamed MLM as a whole entity in his immediate network zone.

When you set up a business, and it fails, do you blame the business? Or the person who failed to manage it?

In summary, yes, there are Ponzi scams set up within the MLM industry. There are people who explained to you that MLM makes you rich easily. There are people who failed in MLM. Why? Simply because they do not understand that MLM requires initiative and drive to market the products. It requires you to sell. It is not another job, it is a business of your own. You have to find ways to expand it and not wait for it to grow on its own.

Do not let the herd mentality cloud your judgment even before you see the road. Unless you are the kind of person who crumbles under pressure and can't say "No" to someone who tries to sell you something you do not like, I recommend exploring options in your life.