Font size
WorksheetsMLM Lesson Reinforcement #1.
Total questions: 15
Worksheet time: 8mins
One main difference between a Pyramid and a Ponzi scheme is...
A pyramid scheme guarantees high returns, while a Ponzi scheme does not.
A pyramid scheme is legal, whereas a Ponzi scheme is illegal.
A pyramid scheme involves selling products, while a Ponzi scheme does not.
A pyramid scheme focuses on recruitment, while a Ponzi scheme relies on investment returns.
What does “MLM” stand for?
Multi-Level Marketing
Money Lending Model
Market-Leveraged Management
Multi-Layered Money
True or False: All MLMs are illegal pyramid schemes.
True
False
What is the main difference between an MLM and a pyramid scheme?
Company size
Whether money comes mostly from product sales or recruiting fees
Number of members
Use of social media
In a legal MLM, most money should come from:
Selling real products
Recruiting people
Social media
Joining fees
A company claims you can “quit your job soon,” but almost no one earns more than they spend. What is the best explanation?
The company needs better marketing
The promises are unrealistic
Products are too expensive
The team lacked motivation
Most MLM participants make strong profits after expenses.
True
False
Scenario: Maria is told she failed because she “didn’t work hard enough,” even though success is nearly impossible. This is an example of:
Motivation
Victim blaming
Leadership
Competition
Why can emotions like excitement and hype be dangerous in MLMs?
They make products cheaper
They distract from financial risks
They make people work harder
They improve customer service
Which social media images are often illusions used in MLM marketing? Select all that apply.
Luxury cars
Big checks
Vacations
Photos of failed sellers
What is a red flag that an MLM may actually be a pyramid scheme?
People like the product
Focus on recruiting instead of selling
Many customers
Products sold online
A friend tells you that you earn more from “building a team” than selling products. What should you conclude?
Normal business practice
Guaranteed opportunity
It may be structured like a pyramid scheme
You should join quickly
Which statements show the reality of most MLM earnings?
Only a few at the top earn meaningful profits
Many lose money after expenses
Everyone makes passive income
Most earn little or nothing
MLMs often use motivational speeches and success stories to keep people emotionally invested.
True
False
Scenario: Kevin is unsure whether an MLM is legitimate. Which question should he ask?
Will I be famous?
Do people actually want this product outside the MLM?
How many selfies do they take?
Does the leader drive a nice car?
