How to distinguish a bona fide company from a “pyramid”: an expert tells us
Network marketing is a model of distributing goods from producer to consumer without traditional retail stores. In this system, sales are made by agents called distributors. They purchase goods at special prices and then offer them to their acquaintances. However, sometimes under the guise of honest network marketing can hide financial pyramids. Therefore, it is important to know how to distinguish between honest companies and those engaged in fraud.
