Is Multi Level Marketing A Pyramid Scheme?

Is multi-level marketing a pyramid scheme – let’s try to find out.

I am Goran

What is multi-level marketing? 

Look at the picture >>>>>>>>>>>>>>>>

That is the structure of Multi-Level Marketing or MLM.

Let’s say that a company has a product they want to sell. There are different ways they can market this product. They can use a TV- channel, they can send out flyers or use Newspapers to advertise their product.

But quite a few use Multi Level Marketing to get their product out to people. As you see in the picture, it starts with one person who buy the product. He in turn recruit three other persons who in turn get three other persons to buy the product and so on. For every person who buy the product there is a cut of a price going to the up-lines.

So let’s say that the cut goes 5 tiers deep. It means that the man in the top of this 5 tier will have a cut from 363 persons. Normally the cut will be lesser the deeper you go on this 5 tier, but on the other hand the cut will come from more people.

This is basically what Multi-Level Marketing is all about.

Is this a Pyramid Scheme?

Many people consider MLMs as pyramid schemes but as long as there is a product involved it is not considered as such.

Is MLM a good way to earn money?

Seemingly, as we saw at the illustration it looks quite good, to get a cut from 363 persons. But the reality isn’t that simple.

First of all you need to convince 3 persons to use this product, but you also need to convince these persons to convince 3 other persons each and so on. The reality is that this will possibly not happen. It is estimated that 73 to 99% who involved themselves in Multi-Level Marketing fail.

Why do they fail?

One reason is that it is very difficult to recruit persons. Let’s say that you are supposed to recruit 3 persons. It doesn’t sound so difficult, but it isn’t just 3 persons or any person. If it should be of any benefit it should be persons who have leadership qualities and they, in turn, should look for persons with similar qualities in order for all 5 tiers to be filled. This never happens. Why?

Because normally those who get involved in Multi-Level Marketing are quite ordinary people like housewives or ordinary persons who just want to get an additional income.

That means that they start to chase family members, friends, and others who most likely are not interested in building a network. That is why 73 to 99% of all who try to do MLM fail and they just lose money.

So is Multi-Level Marketing a pyramid scheme?

As long as there is a product involved it is not a pyramid scheme. But frankly, it is not a good way to earn money.


  • MLM for making money 2/10
  • MLM recommendation NO
  • Is it a pyramid scheme? NO


If you really want to find a real way to have an income online, please continue to read.

Is there any legit way to make money?

In my opinion, there is only one legit way. I have been online for making money since 2007. There was a break for a few years when I tried Forex trading with not-so-good results. I have tried Clickbank products through Safelists with moderate success. But basically, it has been a waste of time. I know that I am not the only one with similar experiences. Most of those who are successful today have gone through similar experiences.

But one day, in July 2019 I stumbled over a platform called Wealthy Affiliate. This was an eye-opener for me. Suddenly I understood the concept of being successful online. During all these years I was kept in darkness by all these so-called “Gurus” whose only intention was to get deep into my wallet, by offering you the so-called “solution” on how to succeed online.

I wish I found Wealthy Affiliate earlier since they have been around since 2005. If I found them earlier I probably would be a millionaire today. I don’t complain I am on the way to reach my goal.

What is Wealthy Affiliate?

Wealthy Affiliate was founded in 2005 by these two gentlemen from Canada, Kyle Loudoun, and Carson Lim. 

Wealthy Affiliate is a platform where people are learning affiliate marketing in a step-by-step manner. You will be given a web page This page will be the foundation for your business or affiliate marketing. It is like a university course with 50 lessons. Each lesson has a video explanation and after the lesson, you will have some tasks to do before you go to the next step. After the 50 lessons, you will get an OEC – Online Entrepreneur Certification and you are ready to take off.

Can I really be sure that I will be successful?

Let me put it this way. Wealthy Affiliate has helped people since 2005. Hundreds of thousands have been helped to be successful. That includes newbies, young and old, moms, and retired persons. The oldest I know is 93 years old and he is very successful. So what do you think? If Wealthy Affiliate were able to help all these people, don’t you think they will be able to help you too to success also?

How much does this training cost?

Actually, it is free to join and for 7 days you will have access to the whole platform without any credit card needed. As a free member, you will get a web page and access to 10 lessons. These 10 lessons will be an eye-opener for you and you will understand the concept of affiliate marketing and how it can be both fun and rewarding.

The first 10 lessons

If you before the 7 days runs out decide to upgrade, the first month will only be $19, thereafter the cost for this university course will be $49 per month. This is a very reasonable price for something that will make you wealthy if you are ready to work for it.

Is it really worth it?

There must be a reason why tens of thousands of people from all over the world choose Wealthy Affiliate and stay there for years. Within the platform, we read about success stories every day, even from people who joined recently. It is not a get-rich overnight program but with consistent work, you WILL get there. It is like what one of the founders Kyle says over and over again: “The sky is the limit”.

Inside there will be a huge community that will be there to help you, including me. Since it is a global community, time is not important, you can always put a question and it will be answered normally within minutes.

Once a weak Wealthy Affiliate is holding webinars to keep us up to date on what is happening at the internet world. These webinars are held by a successful expert in affiliate marketing. His name is Jay and he joined Wealthy Affiliate 2007. These webinars are recorded so there is always a possibility to see them at a time convenient for anyone. Just to browse among these hundreds of webinars anyone can understand how much knowledge there is stored up.

A sample of these webinars


Promote Wealthy Affiliate

If someone wants to promote Wealthy Affiliate they have a very generous affiliate program:

If you are premium member it only takes 2 referrals who upgrade to premium and your membership is paid and the training are free so to speak for you. If you prefer to stay as free member and want to promote Wealthy Affiliate you just cut the commission to half.

If you want to go really big you can refer 300 persons in 1 calendar year and you will get a special reward from Wealthy Affiliate.

First of all, you will have a monthly income of around $7000

But there is another pleasant reward too. You will go to LAS VEGAS. All expenses covered, including travel, hotel, food, and other activities.

The picture below is from last year 2020 conference 

As you probably already realized, Wealthy Affiliate is a legit platform with high ethnic and moral values where they focus on that you shall be successful.

I hope to see you inside.


Some information about Wealthy Affiliate

Product Name: Wealthy Affiliate

Real Testimonies: Read Real Testimonies and Reviews

Website: wealthyaffiliate.com

Training: Internet Marketing and E-commerce 4.7/5

Owners: Kyle Loudoun and Carson Lim

Overall Ranking: 98/100

Recommended: YES


I hope you liked this information. If you have any additional question(s)

Please put them below!

All the best






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