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They call all MLM plans pyramid cons. Actually all governments and companies are derived from a pyramid shape. You actually cant get away from it. Correct pyramid schemes are illegal since they arent centered on anything-- there is no product or service. And the people in the bottom always lose. An example are pyramid-scheme chain letters. But network marketing is just another way of distributing goods and services, by eliminating the middle man and carrying it out individual to individual, and paying people with residual income for recruiting and training more sales people. Most MLM companies are based from the home. A lot of people feel as it works so well, that network marketing can replace traditional business sometime. simply because they are losing business.) (Ask some of the major companies that are making the change up to MLM And it is true that maybe not everybody is cut out to possess their own business or work in network marketing. 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