Most people of a certain age know enough to recognise a multi-level marketing pitch at a distance. Perhaps you have that one acquaintance who enthusiastically suggests you read the book ‘Rich Dad Poor Dad’, or know a friend of a friend who persistently invites you to a talk at a nearby hotel or community centre which he promises will open your eyes to the secrets of doing business, or maybe a distant relative who puts in considerable effort to convince you that you can make your money earn more money for you. Going forward from the pitch, there are some people who have made significant sums of money from MLM schemes, a large number who haven’t made much money, many who have lost money and from anecdotal evidence, the vast majority have stayed away.

These pitches can draw you into a direct selling arrangement, an MLM arrangement or they may be a pyramid scheme. The last of these is essentially a fraud that grants membership for payment and promises that you will recover many times the amount you have invested when you recruit similar paying members and those members further recruit more paying members.