Is network marketing behavior a new type of pyramid scheme?

Yes.

Network marketing and pyramid schemes is almost the use of the Internet and other means of distribution, usually have their own Web site, by pulling people to join, people pull people and then pull the downline, pull the more you earn more, is a variant of the traditional pyramid scheme, because of the payment of the dues is low, but the number of people, the development of the development of the people will be very fast, the use of the people's love of money mentality, in fact, it's a kidnapping extortion gang.

Network marketing uses secretive and undisclosed means, it is the same way to profit is to pay dues (or say enjoy the product), and then pull people into as their own downline, so concocted, this way and the traditional pyramid scheme is not fundamentally different.

Expanded

Using websites as a platform for pyramid schemes is more deceptive and covert than traditional pyramid schemes. These MLM websites are mostly attracting people under the banner of distance learning, training for personal entrepreneurship, and e-commerce, which masks the nature of their development of members (downlines) for profit.

In the case of the Beijing Eurasian Weiye pyramid scheme, the information gathered shows that Beijing Eurasian Weiye International Co., Ltd. has developed a high-tech pyramid scheme under the guise of developing e-commerce and promoting the development of the information industry in the country.

In the company's website lists corporate planning, personal finance, distance education, training, buyers and sellers, publicity services, information services, 60mb space, management and control centers and other boards, from the wording of the slogan are very tempting and deceptive. Many downline personnel have no ability to judge, that is e-commerce, after being caught also repeatedly emphasized that they participate in not a pyramid scheme but a new type of consumption.

Baidu Encyclopedia-Network Marketing