---
canonical: https://flawlessmlm.com/en/blog/the-essence-of-mlm-network-marketing-or-pyramid
title: The essence of MLM. Network marketing or pyramid | MLM Guide 2025
description: 'The essence of MLM. Network marketing or pyramid: expert insights, practical strategies and key tips for network marketing. Learn how to build and grow your MLM business effectively in 2025.'
lang: en
updated: '2026-08-19'
url: https://flawlessmlm.com/en/blog/the-essence-of-mlm-network-marketing-or-pyramid
last_updated: '2026-08-19'
language: en
type: article
keywords: The essence of network marketing, the essence of MLM, network marketing pyramids, the difference between a pyramid scheme and network marketing, MLM principle, history of financial pyramids, the difference between network marketing and a financial pyramid, the essence of network business, network business organization
category: MLM Business Organization
published_date: 28.10.2015
---

# The essence of MLM. Network marketing or pyramid

**Network Marketing** - this is **NOT** a law-prohibited "pyramid scheme". It is not a letter that you have to rewrite several times, and not a prohibited lottery where people make money by recruiting others. "Pyramid" schemes are illegal and prohibited by law in all civilized countries.  

**Network Marketing** - this is **NOT** a path to quick enrichment. Although some manage to earn money quickly, such people are more of an exception than a rule. But if you remove the word "quick" and consider this business simply as a way to get rich, then it's a whole different story.  

**Network Marketing** is acceptable NOT only for professional salespeople. Countless stories tell of successful people who had no experience in sales or relevant education, and most of these people are the majority.  

**Network Marketing** is NOT taught at Harvard or Stanford business schools. Many colleges and universities have used the work of some companies as examples and that's all.  
Network Marketing will NOT take up all your time. About 90% of men and women involved in this business work part-time.

#### **Pyramids were invented by an Italian**

The so-called financial pyramid was first created in the USA in 1919 by a certain Charles Ponzi, an Italian immigrant.  
He promised his clients a 48% profit within 45 days if they bought his financial tickets. Almost 10 thousand depositors gave him $9.5 million, but never saw their money back.  
In 1920, Ponzi was sentenced to five years in prison. Upon release, he engaged in large-scale thefts, was caught, and imprisoned again.  
In 1934, he was deported to his native Italy. On the eve of World War II, Charles Ponzi, like any Great Combina

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Source: [FlawlessMLM Blog](https://flawlessmlm.com/en/blog/the-essence-of-mlm-network-marketing-or-pyramid)