multilevel business there are no investors, but partners. This means that they will obtain as a benefit a percentage of the value of the product sold or a commission agreed between the brand and the seller for each sale made. On the other hand, in a clipping path service pyramid business, the benefits that an investor obtains depend on the number of people that he has managed to attract as participants . The fee paid by a new member is distributed among the investors who were already part of the network, always starting with the oldest, who are the ones who receive the most. 4. Taxes Multilevel companies issue invoices,
pay the corresponding taxes and declare to the Treasury. That is, everything is documented and justified. In addition, the commissions obtained by partners for sales made are within the regulations of the country in which they operate. On the other hand, pyramid marketing fraud is very clear, since this type of business does not declare anything or declares that they are donations so as not to pay the corresponding taxes. 5. Time to profit In order to make it much more attractive, short-term profits are promised in a pyramid scheme . While in a multilevel business , although benefits are promised,
it is specified that these may appear in the medium or long term . If these differences are taken into account, it is much easier to differentiate a business based on fraudulent pyramid marketing from a multilevel one. Similarities Between Pyramid Marketing and Multi-Level Marketing It is clear that pyramid marketing is a scam, while MLM is not based on lies and operates completely legally. Even so, there are many people who continue to confuse both business models . This is most likely due to the fact that there are certain similarities between the two: In both models,