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I was assigned to MLM project in work, have some questions (startrek.website)

submitted 1 year ago by BigChungus@startrek.website to c/asklemmy@lemmy.ml

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I work as a web dev, FE/BE, and company I currently work in took a project that is basically some kind of MLM structured business. It’s a challenge to do such project, not only from dev perspective, but also morally I’m not sure if I’m okay with it.

My question is - what do you think about MLM structures in companies ? Is it scam based business or is there something that I’m missing ?

It’s not decided yet if it will be binary or turnover based, but what is your experience with those two types of management system ?- from a technical perspective or product seller perspective. Thank you.

Have you ever worked for MLM company before? What was you experience ?

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[–] gh0stcassette@lemmy.blahaj.zone 28 points 1 year ago (1 children)

Multi-level marketing is a kind of pyramid scheme, they're only legal because existing anti-pyramid scheme laws only prohibit "businesses" that don't actually sell any products, and make all of their money through recruitment.

MLMs get around this by recruiting people to "sell" products, but recruits must pay for them in advance (almost always at a massive markup) and the products are typically so overpriced and/or poorly made that many of them go unsold.

So, almost all of the profit of those at the top of the pyramid comes from their downstream recruits recruiting more people to "sell" the product, even though product sales are completely unrelated to the success of the scheme as a whole.

[–] Scew@lemmy.world 6 points 1 year ago (1 children)

existing anti-pyramid scheme laws only prohibit “businesses” that don’t actually sell any products, and make all of their money through recruitment.

So like... NFT communities?