The ethics within network marketing MLM (multi level marketing) has always been up for debate. Many people take advantage of several niches within MLM, such as tight communities such as Christian network marketing. Also, network marketing affiliate programs are quite popular.
The question within network marketing MLM is whether or not it is an ethical business structure. It is often compared to the structure of a pyramid scheme.
Network Marketing MLM: This form of business requires a service or product to be sold. People often sell the item to close family or friends or through word of mouth. In network marketing MLM, people who are close to the member are often recruited to work "underneath" the member. As a result, the person who recruits gets royalties for anyone who gets recruited beneath them.
Pyramid Scheme: Like Network Marketing MLM, pyramid schemes require people to recruit members. However, there's only a recruiting process and typically no product or service to be sold. Unlike Network Marketing MLM, people are asked to invest large sums of money in order to join. The people above receive the money and distribute it to those higher in the hierarchy.