Paying a commission for recruiting new distributors in a multilevel marketing plan is something consumers should watch out for. Most states outlaw this practice which is called:

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Paying a commission for recruiting new distributors in a multilevel marketing plan, known as pyramiding, is a practice that most states outlaw because it can indicate a pyramid scheme, where earnings are primarily based on the number of distributors recruited rather than on the sale of products to consumers.

Paying a Commission for Recruiting New Distributors in a Multilevel