Is multilevel marketing a scam like a pyramid scheme?
— Ruth Weisberg, via e-mail A: In pyramid schemes, participants are often promised riches based on recruiting more participants, with any products (there are often no products) being incidental. These are zero-sum games, where any money made is money someone else has lost. Multilevel, or network, marketing can be a legitimate and effective way to run a business — witness Avon, Mary Kay, Tupperware, Shaklee and Amway. It involves real products or services being sold for reasonable prices, resulting in a win-win scenario: The customer gets the goods and the seller makes a profit. Learn more at www.ftc.gov/bcp/conline/pubs/alerts/pyrdalrt.htm. FOOL’S SCHOOL Global investing at home With the U.S. economy struggling, it’s natural to consider investing abroad. But beware: International investing carries some risks. For starters, many countries can be dangerous places to invest. Shareholder rights and protections offered in America don’t exist everywhere. Placing your money under the regula
