If in doubt it is advisable to check out the firm with the Better Business Bureau or with the postal authorities when it involves direct mail methods. Remember also, there are some very fine multi-level firms offering good opportunities for success oriented people. Those who thoroughly enjoy meeting and working with others, who are not afraid of hard work, not easily discouraged and who can persevere in the face of many disappointments, have made their fortunes in Multi-level marketing. With such attributes and the right program together with proper training you can be a success in this kind of business. Pyramid clubs also include any such sales device which does not involve the sale or distribution of any real estate, goods or services, including but not limited to a chain letter scheme.
Pyramids are illegal because they are inherently fraudulent.
In order to achieve the profits that are promised, a never ending chain of participants must be recruited. A saturation point will be reached and no more recruits will be available. When this occurs the most recent recruits can't receive what has been held out to them to cause them to join, and they lose all or part of what they paid to join the scheme. After just a few levels there would have to be millions or billions of participants to keep the chain going. Chain letters are not the only illegal pyramids.