Recruiting phrase
What if an MLM pitch says it is not a pyramid scheme?
Short answer: Do not argue labels in the meeting; ask how compensation is earned, whether retail customers are verified, and what typical participants keep after expenses.
What the phrase usually means
The phrase may be used to reassure a prospective participant that the opportunity is legitimate.
The useful next step is to review the compensation plan, income disclosure, expense expectations, and customer-sales information.
Why it matters before joining
A label does not answer how a specific opportunity works for typical participants.
Written information is more useful than a verbal reassurance when money, purchases, recruiting, or relationships are involved.
Questions to ask in writing
- What percentage of compensation comes from retail sales to customers who are not participants?
- Can I earn meaningful net income without recruiting anyone?
- What do typical new participants keep after expenses?
What this does not prove
The phrase does not decide anything about the opportunity. It is a reason to return to written disclosures and public sources.
Related questions
- What should an MLM income disclosure show?
- Can you make money in an MLM without recruiting?
- Is network marketing the same as MLM?
Helpful next pages
Sources
- Multi-level Marketing Businesses and Pyramid Schemes, Federal Trade Commission . Accessed 2026-06-14. Support type: Regulator guidance.
- Business Guidance Concerning Multi-Level Marketing, Federal Trade Commission , 2024 . Accessed 2026-06-14. Support type: Regulator guidance.