Actually it's called Network Marketing and people such as Donald Trump and Robert Kiosaki recommend it as one of the best ways to start and build a business that pays residual income.
Network Marketing has been proven as a viable business opportunity through such companies as Avon, Mary Kay, Shaklee, Amway and many others.
With just a quick search on Google, I found this to better describe Network Marketing
Quote:
What is a pyramid?
It is an organizational structure where the people at the top make more money than those beneath them. This describes every conventional company in existence! The problem with the conventional company is this: there exists a structure whereby the CEO generates income from the efforts of each person below, but those workers do not have the opportunity to earn as much as, or more than, the CEO.
Have you ever heard of a general worker [GW] who makes more than the CEO or the General Manager [GM]? Does middle management ever make more than the company's senior management does? Not typically! The old model just isn't fair for those underneath. No matter what their effort, they can never make more than those above them can. The pyramid is not equitable.
In Network Marketing however, you are building an income from the production of everyone in your organization whether you directly sponsored [a sponsor is one who recruits and trains another distributor.] them or not. Each person in your organization can do the same, so now you have created a situation where everyone has the same amount to gain. It's the fairest structure available because everyone can create exactly the same situation. And in fact, due to the nature of Network Marketing, people under you can and do in some cases, earn more than you simply because they can access levels that you cannot. Everyone can reach down into their organization the exact same number of levels. If someone has created more volume in their levels than you have in yours, and some of those levels are beyond your ability to reach them, that person can actually make more than you can, even though they are UNDER you!
This makes it the absolute FAIREST system available because it compensates people based on their contributions and efforts, not based on where they fall in the system. Once again, why should someone earn as much as you if they're not making the same effort that you are?
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Take a look at this video, it describes Network Marketing the best that I have ever seen!!
Economic Power
I still am excited about the product that Success University has. The top 50 teachers and professionals in Personal Development all in one place downloaded when you want!!
Each to their own, but it just urks me when people call anything other that a 9 to 5 j.o.b(just over broke) a scam! Yes, there are many scams out there, including network marketing companies. Just like anything else, you have to be a informed consumer. But just calling a company that has been in business for 2 years and has helped thousands of people change their lives for the better a scam without looking at the facts is just wrong.