Network marketing itself is a completely legal and respectable business, and earnings from network marketing, like income from any other commercial activity, are subject to government taxation.
But seeing the effectiveness of this type of promotion of goods and services, fraudsters became more active, who created the phenomenon of financial pyramids and tarnished the reputation of the MLM twitter data sphere. With the development of the network marketing industry, fraudulent schemes are increasingly and better disguised as it.
Let's recall the financial pyramid "MMM" (early 90s), which ended in a loud collapse. Also large financial pyramids in the 90s and 2000 were "Vlastilina", "Russian House Selenga", "Tibet", "Khoper-invest" and "Rubin" ("SAN"). The number of victims of the organization's activities was in the millions, the founders received real prison terms.
You can find out the difference between legitimate network companies and scams by reading the article Network Marketing VS Pyramids.