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I think that MLM is a sort of a scam, and I assume that it is a legal for most states. Most businesses run a MLM. MLM stands for Multi-Level Marketing or network marketing. It is very common nowaday.
It usually charge you about 200 bucks to startup - i.e. books, many brochures for customers, and a video tape. This money split between you, your seller ("boss"), and the company. You make 1/3 (?) of profit and 2/3 goes to the company and the "boss" seller. The company and the "boss" seller make more money than you. If a new seller is under you, you will make more money than this seller, but the company double profit, etc...
One thing that I do not understand about IRS tax for this MLM. I used to work for a MLM a long time ago, and it was too expensive for me to buy something because some people cannot afford to buy it.
I am sure that both of Club Freedom and Quixtar are related to MLM businesses. I consider that it is a risk to work for the MLM because it could do anything happen if they shut you off or make you give it up in order to make more profit. That's my opinion.
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