HEL it’s urgent I’ll brainlist (write it in your own words!!) 1) How is an MLM/pyramid scheme different to a Ponzi scheme?

2) what is the difference between a scam and a Ponzi scheme?

1. 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.

2.The essential difference between the two frauds is that a Ponzi scheme generally only requires investment in something from its victims, with promised returns at a later pay date. Pyramid schemes, unlike Ponzi schemes, usually offer a victim the opportunity to “make” money by recruiting more people into the scam.