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There are also pyramid schemes, which can look a lot like multi-level marketing, but are illegal. According to the Better Business Bureau, there are ways to spot the difference.

DEAR HARRIETTE: I think one of my friends might be working for a pyramid scheme. I can’t be sure, but he basically plays the role of a financial adviser and “helps” people invest their money.

In 2013, the Federal Trade Commission, along with North Carolina and two other states, said the company was an illegal pyramid scheme. They were successful in shutting it down.