Multi-level marketing (MLM) - a business or financial pyramid? Before answering this question we need to understand the terminology. Let's start with the definition of the financial pyramid. Pyramid scheme (English pyramiding) - a scheme in which the income from the lure of money paid by attracting new participants. Pyramid scheme exists before long able to attract into its ranks new members. To participate in the financial pyramid must invest in its funds a certain amount of money. Amount can be either very small (1-5 $) and very large (more than $ 1000). Organizers of the financial pyramid is struggling to maintain profitability of the entire system to ensure a steady stream of participants and therefore increase the amount of invested funds. Of course, much of the money the organizers of the financial pyramid appropriate for themselves. Over time, there is a saturation of the pyramid, the increase in the number of new members of the stops, the possibility of paying the promised profits are becoming more limited. Participants began to rise expectation of risk, financial pyramid is becoming more volatile and sensitive to any rumors. As a result, at the time of receipt of bad news among the participants started the panic, there is a massive withdrawal of funds, and the organizers of the financial pyramid are unable to fulfill their obligations. Accordingly, profits are only the upper levels of the pyramid, and new members lose their invested money. A distinctive feature of the pyramid is the lack of goods. Multi-Level Marketing - a system created by and for people, not for businessmen and entrepreneurs. We choose a place to work, time, and then skem we are going to carry it through. We should not have special knowledge, skills, able to master even a schoolboy. In companies, Multi-Level Marketing can make a lot of money. In some cases it is slower in others - quickly. Earnings always depend only on the organization, to build groups of consumers and distributors, and never - from personal sales. The financial success of the Multi-Level Marketing is that of the ligament producer-consumer withdrawn sellers - intermediaries. Producers of goods and services to save significant resources to the promotion, which can be focused on creating a better product. This is connected with the fact that, talking about the products in the Multi-Level Marketing, consumers should be motivated by the characteristics of the product and the benefits they receive from their use. One can say that the money previously received by the mediators, began taking active consumers, and go on improving product quality, which in turn attracts new customers. But the main success of the system - primarily social. More than ever before Multi-Level Marketing people did not have a mechanism to allow without a lot of money, connections and expertise to get the opportunity to participate in one of the most profitable sectors of the world - marketing. That is an area where most of the work on customer service, delivery, and to date, and the payment takes the manufacturer, giving the average person can only create their own business. Despite its progressive nature and the success of Multi-Level Marketing caused many people have misunderstandings, primarily because people confuse this system with a network of direct sales and pyramids, masquerading as Multi-Level Marketing. First do not like for one simple reason - few people want to be in the role of "seller-supplicant." A second fear and try to avoid anything that even in something might be similar.