marketingChecking with PayPal and other credit cards gateways, there are some restrictions about using them with “high risk” businesses. Those include gambling, porn and a few others. But what I can’t understand is why they consider Multi Level Marketing / Network Marketing high risk.
MLMs are illegal in some jurisdictions, and in places where they’re not, illegal pyramid schemes often present themselves as MLMs. It tends to be a business model with an overrrepresentation of less-than-reputable actors, making it a high risk sector.
Because they rely on new marketers rewarding previous ones. Its like a Ponzi scheme. They need constant flow of ever increasing newcomers to function. So MLM marketing need momentum to work, and can seldom sustain that for long.
All content is licensed under CC BY-SA 3.0.