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Multi level marketing companies are big business around the world and they have rightfully attracted much criticism for questionable business practice. Many have called them illegal pyramid schemes but today these companies continue to operate in most developed countries around the world and rake in billions of dollars in profit in any given year all with the blessing of local trade authorities.

So what are these businesses, lets park personal opinions on how annoying it is to be roped into one of these MLM meetings for the moment and asses the fundamental economics behind these businesses

I have tried to remain as fair and unbiased as possible in the video but the numbers really do not paint a pretty picture.

For all enquiries –

Music – Babylon Disco – Ultralounge


Economics Explained says:

Hi Guys exciting news, as widely requested I have created a Discord server for this channel. This is my first time making this type of server so I hope I have done everything correctly. Feel free to come hang out and chat, or even just come and get help with your economics homework 😛

Hermod Frøyland says:

I’m really impressed by the quality of this video compared to the subs. You deserve a lot more.

Hermod Frøyland says:

I’m really impressed by the quality of this video compared to the amount of subs. You’ve earned your self a sub.

snurk agurk says:

If your business strategy forms a pyramid at all, it should be illegal

Djendo says:

Interesting video again! Thanks!

Rathatamanun Charypo says:

Well, the fact that a women you talk about gets paid lower than the typical business with the same number involved is that, the company counts down to a certain member so the rest would be cut off. So she left with her, only the closest members.

And the real reason these business isn't a pyramid is that, it doesn't pass registration fee from new members to the referrer. Some of them are a bit tricky, they give some money when a referrer gets new referee, but less than what they paid to start a business. I doubt they even call this ethical.

Jack Barbey says:

I got an ad for an MLM right after this video.

Oliver james says:

You know whats ironic? I got ad for one of those MLM free training courses

Alexander Scrotumface the Great says:

Can you do a video on how likely it is that the EU is gonna succeed in integrating the different economies in Europe into one big European economic powerhouse, as there are multiple struggling economies right now who don't seem to be able to recover, like Greece and Italy.

Oliver james says:

Ive been enjoying your videos for the past hour or two

Robrot says:

For some reason I thought he was going to talk about Maoist economics (Marxist-Leninist-Maoist)

TankingShaman says:

These stock videos are effing hillarious

Jeffrey Vauxhall says:

If it's too good to be true it probably is, informative explanation EE looking forward to see more

Iskaka says:

If that isnt a puramid scheme idk what is

Kaul says:

Cant stop thinking about the office

Economics Explained says:

Hi Guys, as always I hope you enjoy the latest video. Pretty controversial subject this week, I have tried to remain as unbiased and fair as possible but the numbers really do not paint a pretty picture on this industry. As always I do my very best to replay to all comments in the comment section 🙂

Ordinary Things says:

Yasss, explain me baby

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