MLMs have been made illegal in some jurisdictions as a mere variation of the traditional pyramid scheme, including in China.[10][11] In jurisdictions where MLMs have not been made illegal, many illegal pyramid schemes attempt to present themselves as MLM businesses.[7] Given that the overwhelming majority of MLM participants cannot realistically make a net profit, let alone a significant net profit, but instead overwhelmingly operate at net losses, some sources have defined all MLMs as a type of pyramid scheme, even if they have not been made illegal like traditional pyramid schemes through legislative statutes.[4][19][20]
A simple way to introduce your business, product and system is to hand out informational material to prospects. These tools give a general overview of the MLM and direct the prospect to contact you for more detailed information. Examples of handouts are CDs, DVDs, thumb drives or reading material. Be familiar with the information before giving it to someone you meet so you can discuss it at a later time. The most effective way to use opportunity handouts is to obtain the prospect's contact information and follow up within a few days to schedule a meeting and address any questions.