Gambling and MLM Schemes

[rahmad2nd]

I just heard that gambling is just like MLM schemes as people only loses both in gambling and MLM schemes ?
Is it true ?

you should be able to distinguish gambling casinos and multi-level marketing (MLM) these two things are clearly different from one another, land-based casino gambling (online) offers entertainment and fun, does not guarantee let alone offers wealth. win or lose you know very well that it is part of the risk. gambling is dexterity, skill, strategy and the like if you insist on continuing to bet then 99% will experience a loss and as you said this contradicts the loss equation between the two. Everyone knows multi-level marketing (MLM) is a ponzi scheme concept that has a long chain.  I think you understand.

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[danherbias07]

I just heard that gambling is just like MLM schemes as people only loses both in gambling and MLM schemes ?
Is it true ?

No. Wrong.
Not all are losers in gambling. Just the right amount of discipline will make you a winner. But first, how did you come up with this idea? Did you lose a lot of money while gambling that's why you have this kind of POV?
I don't do records about my bets and I just let it flow but I know to myself that I gained many profits last season of the NBA. I don't remember a losing streak when I went 10 games without winning anything. Most were tie-breakers and others 2 wins, and 1 loss.
It's not the same, don't compare it with that.

[traderethereum]

I just heard that gambling is just like MLM schemes as people only loses both in gambling and MLM schemes ?
Is it true ?

How can gambling be like an MLM scheme?
Is it an invitation from someone else that makes us join the gambling site and spend the money we have?
Other people can invite us to visit gambling sites but we must be able to choose and say no if we know the risks.
But most people who know nothing about gambling will visit a gambling site and start gambling for small money.
So gambling is not like an MLM scheme because it is completely different.

[btc_angela]

I just heard that gambling is just like MLM schemes as people only loses both in gambling and MLM schemes ?
Is it true ?

I guess you don't understand what MLM is and they are not even comparable to say the least. In MLM, you are encourage to recruit members under you. And it is being compared to pyramiding scheme.

For gambling, it's very different, you play with your own money, whether sports betting or casino games like slots or dice. You don't have to recruit anyone and it's you agains the casino. There is no someone above you or your downline streams.

[Fundamentals Of]

The comparison is very poor. In fact, almost opposite. Gambling is for fun. But you've got to spend money for it. You're expected to lose. MLM on the other hand is a business scheme. It is not for you to lose money but for you to earn.

Huh? did you even know-how is the work of MLM Scheme.

MLM Shchem/Ponzi is pay the old investment from new investment until they cannot gain more members and not cannot pay anymore. Gambling statistic why we have more loses, because most the time is from psychology.

This is wrong. MLM is not Ponzi, at least strictly speaking. But I understand that you immediately jumped into conclusion. It seems you've already been a victim yourself or a friend to a victim of a Ponzi that has a business front that uses MLM. It's not uncommon. 99% of networking schemes or MLM are actually Ponzis.

[lionheart78]

But in most cases, MLM Pyramid scheme is focused on referral programs and not on the product.

They are promoting aggressively the gains that users can get thru the referral programs instead of focusing on the benefits of the product.

That's why MLM Pyramid scheme is even worst than gambling.

There fixed that for you since you are talking about Pyramid scheme not MLM scheme. Probably you had skipped the previous reply that clearly stated the meaning and function of MLM schemes.  

snipped...
https://www.investopedia.com/terms/m/multi-level-marketing.asp
https://en.wikipedia.org/wiki/Multi-level_marketing
Come back here after reading those and try to answer now by yourself if gambling and MLM schemes are quite the same.

MLM Schemes have legitimate process governed by rules and contractual obligations for distributorship as well as regarding inventory holding, training and sales etc. Pyramid selling on the contrary is based on very loosely constructed, vague rules, promises without any legal or contractual obligations and more importantly without any substantial product range.

Another difference:

MLM Schemes do not require you to make any investment except a meager cost involved in buying a start up kit or some marcom materials or a small distributor fee for membership and such amounts are quite miniscule. Pyramid selling networks are focused on making money from charging all kinds of entry fee as well as pushing the distributor to buy, hold inventory on paper without actual physical goods or based on schemes like catalogue or magazine subscription or some sort of discounts etc. In lieu of a future sale and income, every subscriber to the scheme gets to make investments which accrue as income to the promoters alone. Pyramid selling always comes with ambiguous plans that promote hoarding of inventory as well as lack of clarity regarding income generation.

source: Multi Level Marketing vs. Pyramid Selling
In short MLM schemes and Pyramid schemes are two different networking schemes.  And I think the pyramid scheme is more relevant to gambling not saying HYIP scheme is far more relevant to gambling.

This clearly explains the difference between two network marketing schemes, MLM schemes, and Pyramid Schemes.  Often times relying too much on what we heard without verifying can lead to misinformation.

Pyramid Schemes are, however, fraudulent schemes, disguised as an MLM strategy. The difference between a pyramid scheme and a lawful MLM program is that there is no real product that is sold in a pyramid scheme. Participants attempt to make money solely by recruiting new participants into the program. The hallmark of these schemes is the promise of sky-high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same.

source: https://consumer.sd.gov/fastfacts/marketing.aspx

Gambling and MLM scheme are very different in every aspect of their function.  Gambling has often been associated with a game of luck while the MLM scheme is associated with hard labor.  

[MAAManda]

I just heard that gambling is just like MLM schemes as people only loses both in gambling and MLM schemes ?
Is it true ?

Where did you hear that from? you should ask yourself again, whether the information you get is valid information or not, LOL. I have gambling experience and I also have friends who join the MLM business, from what I do and what my friends do, it's 100% different. Everything we do to make money certainly has risks, so of course there will be people who lose. The point I want to make here is, if you gamble, you rely on your luck, while in the MLM business, you rely on your efforts.

[KennyR]

With MLM you need to trap others to make money. With gambling the scenario is different, you spend your own money looking for the outcome. If the luck is on your side you'll make money, if not what you risked will be lost. Apart from that you need to develop strategies and tricks with which you can make money. With MLM you need to make strategies to make others invest on the scheme you're promoting. Most of the MLM looks interesting at the beginning, later it turns out to be a scam.

[Wexnident]

I don't think there's even a relation to each other? I mean you're entering MLM (even if it was a pyramid scheme and not an MLM tbf) expecting something in return since you kind of investing, whether it be in the form of physical goods or monetary cashback or whatever, gambling, on the other hand, you expecting something is you being dumb and well, not actually knowing what gambling really is.

MLM is kind of like a community where you're guaranteed a return back if it's actually legal, but gambling is a game, it's a form of entertainment. It's literally something that follows the logic of something like a coin toss, a random 50/50 chance.

[Beparanf]

Both will indeed lead to losses, but losses in MLM will not be controlled. Unlike gambling, losses are caused by themselves and there is no coercion from others.

Business have risks, but gambling is far riskier than multi-level marketing if the multi-level marketing is legit. Even gambling is not related to business unless you are the owner the gambling platform.

If you read back my statement, I do mention that MLM is quite popular before in crypto for scam scheme and obviously that’s what I’m pertaining in my statement and not the legit business using it since acknowledged the MLM scheme is not bad if it’s properly.

The thing is, MLM ponzi scheme in crypto can still give you a profit if you are lucky to enter in early but the chance of losing is very high if you are late and this is the risk what I’m talking that I’m associating with gambling risk.

[lionheart78]

Both will indeed lead to losses, but losses in MLM will not be controlled. Unlike gambling, losses are caused by themselves and there is no coercion from others.

Business have risks, but gambling is far riskier than multi-level marketing if the multi-level marketing is legit. Even gambling is not related to business unless you are the owner the gambling platform.

If you read back my statement, I do mention that MLM is quite popular before in crypto for scam scheme and obviously that’s what I’m pertaining in my statement and not the legit business using it since acknowledged the MLM scheme is not bad if it’s properly.

They are Pyramid schemes, a fraudulent schemes disguised as MLM.[1]  They became popular in my country too but I won't associate them with legal MLM.  Most of these so-called "MLM" company that took advantage of crypto does not have any license to operate nor are approved by the SEC.  So basically they are an illegal entity and joining them is the same as an act of taking chance to get profit which sadly ends up in a loss.

The thing is, MLM ponzi scheme in crypto can still give you a profit if you are lucky to enter in early but the chance of losing is very high if you are late and this is the risk what I’m talking that I’m associating with gambling risk.

A Ponzi scheme is a scheme that gives the most benefits to whoever gets in first.  So for those late comers, it is a gamble for them since they don't know if the system can still support to pay out the members.  So basically this can be considered the same as taking a gamble just like what gambling is.  Taking a chance to get a profit.

Here is an excellent article on MLM, where their main selling point is their people rather than the actual product they are attempting to sell to the general public.

- https://bitcointalk.org/index.php?topic=5116935.0

Also, you can't easily call a service an MLM just because at some point they lose their hard - earned money. In fact, losing is inevitable in every other business niche that has risk associated with it. Okay?

That thread had wrongfully used the Term MLM.  Under the definition, It should be Pyramid Scheme disguised as an MLM company.  It generalized MLM as fraudulent activity which is very wrong and misleading.

[1] https://consumer.sd.gov/fastfacts/marketing.aspx

[johhnyUA]

MLM Shchem/Ponzi is pay the old investment from new investment until they cannot gain more members and not cannot pay anymore. Gambling statistic why we have more loses, because most the time is from psychology.

It's often far more wise to invest in MLM at the start. In that case you will for sure get your profit. And this what we can't say about gambling. Gambling is more about math, and MLM about psyhology and right moment. To succed in MLM you need a good insight. And to gamble you need to be a good mathematician

[ralle14]

I just heard that gambling is just like MLM schemes as people only loses both in gambling and MLM schemes ?
Is it true ?

Even though you're likely going to lose money in both gambling and MLM they're still different because in gambling not everyone plays just to make money. There are others that play for fun just like how you spend money on an activity just to get entertained. The results might be similar but the processes are different, you'd understand it more once you get a good look at both sides even further rather than just knowing the outcome.

[robelneo]

I just heard that gambling is just like MLM schemes as people only loses both in gambling and MLM schemes ?
Is it true ?

Have you tried both of them, I guess you have not, I have tried both of them and my opinion is you're not in a good position to make money from gambling than MLM, MLM is far better than gambling on gambling you can bet your money and its 50/50 chance to win and if you're having a bad day the house edge will play out and beat you, on MLM if you have good marketing skills and you can make money from MLM, there are good and bad MLM but your chances to make money from MLM is better and if you did not make money from MLM you have their product or service as a consolation, on gambling you don't have a consolation,  you lose everything.

[lionheart78]

I just heard that gambling is just like MLM schemes as people only loses both in gambling and MLM schemes ?
Is it true ?

Have you tried both of them, I guess you have not, I have tried both of them and my opinion is you're not in a good position to make money from gambling than MLM, MLM is far better than gambling on gambling you can bet your money and its 50/50 chance to win and if you're having a bad day the house edge will play out and beat you, on MLM if you have good marketing skills and you can make money from MLM, there are good and bad MLM but your chances to make money from MLM is better and if you did not make money from MLM you have their product or service as a consolation, on gambling you don't have a consolation,  you lose everything.

I agree that legit MLM company distributors need Marketing skills to sell the company products or services.  In the end, the MLM distributors earned a commission from the reported sales and retail profits.  Since it is a Multi-Level company, distributors also earn from their referred distributor sales.  While in gambling, we only profit when we win in our gambling session.

Affiliate marketing in a gambling platform can somehow earn us passive income just like the unilevel[1] option of the MLM company earnings but I think that is not what this thread's discussion is about.


[1] https://www.infotraxsys.com/insights/whats-a-unilevel-plan-mlm-unilevel-basics-pros-and-cons-infographic/

[livingfree]

There is this taboo about MLM, I'm not part of it and not a defender of them and I'm not into it. But because of the false marketing of some MLM, they've been thought of a scam. I guess when someone who's approached wrongly by telling how good and easy to earn on their company and it turns out that it's not, they'll have that conclusion that it's a scam.

OP should ask that person where he has heard that it was a scam.

Maybe, him or that person was a victim of an actual scam and ponzi.

[uneng]

You can lose money gambling, joining MLMs, trading and investing anywhere else, what doesn't mean all these activities can be compared and put on the same basket. The point is that you gamble by yourself with your own money and expect to make some profit from it, without having to involve other people (referrals) in order to achieve profit. That is an individual activity where you play against the house or another players.

At MLM schemes you need to be an influent person to attract adepts to your cause, who will generate passive income for you through their work and effort, so you can't be a lonely wolf when joining these schemes. The central goal here is to rely on other people to earn money, what doesn't apply to the reality of most people, therefore, most people will lose money or won't earn anything with MLMs in the best scenario.

[Zilon]

I just heard that gambling is just like MLM schemes as people only loses both in gambling and MLM schemes ?
Is it true ?

Multi-level marketing is strategic and works perfect in a well structured organization except for organizations that are not licensed then funds could be at high risk. Loses on MLM schemes can also be said to be subject to failed marketing tactics.. Every level comes with it's own benefits. It is like a ladder to success whereas  Gambling on the other hand rely on probability, luck and less strategy hence  the difference don't match up at all

[serjent05]

You can lose money gambling, joining MLMs, trading and investing anywhere else, what doesn't mean all these activities can be compared and put on the same basket. The point is that you gamble by yourself with your own money and expect to make some profit from it, without having to involve other people (referrals) in order to achieve profit. That is an individual activity where you play against the house or another players.

Pretty much that is true.  In a failed venture, everyone will lose money.  Same thing with gambling.  The only difference is the risk management whereas in gambling this is non-existing though gambling has bankroll management.

At MLM schemes you need to be an influent person to attract adepts to your cause, who will generate passive income for you through their work and effort, so you can't be a lonely wolf when joining these schemes. The central goal here is to rely on other people to earn money, what doesn't apply to the reality of most people, therefore, most people will lose money or won't earn anything with MLMs in the best scenario.

I think there are two ways or more to earn from legit MLM.  The first one is through retail profit where you get the item at a discounted price and sell them at a selling price.  More or less 25%-50% depending on the company retail discount.  The next one is the group sales commission, that is where the unilevel marketing comes in.  Sadly many fraudulent companies mimic this kind of scheme but as far as I understand it, the scheme they use is the Pyramiding scheme.

I had witnessed people advance their financial status by being involved in legit MLM.  It doesn't happen overnight though but years of hard work and building a network of product customers and partners.   I do not think gambling has that?

[crzy]

I just heard that gambling is just like MLM schemes as people only loses both in gambling and MLM schemes ?
Is it true ?

This is way different, MLM only sells a product and they have that scheme which many can easily notice. There’s no scheme in gambling, its already given that you will just lose money here because again, the house will always win. If you think this is a scheme then stop doing both, you can have more peace of mind if you stop gambling, that can help you a lot to save more money. Gambling is still risky, compare to MLM where you are buying staffs that you might actually want.