Originally Posted by lazycash

The way traditional mlm's get around being labeled an illegal pyramid scheme is by having a viable product that needs to be reordered. However, the goal still remains the same, keep bringing in new income through the front door and push it through the downlines. They create a normal product, but try and spin it as unique so they can really jack up the price and create a big enough margin so that there's enough profit to payout all the levels. This mlm's product would most likely sell for $10-18 in a normal retail setting, but they raise the price to $60 and make it a requirement for not only entering the mlm, but also for maintaining your membership. So you have a product with huge margins that's going to be ordered over and over even if you don't use it, like it or want it. So essentially the product just becomes a shill or front and the recruiting/marketing takes center stage. The owners are laughing all the way to the bank on this one.