Is PM-International a pyramid scheme? Direct selling, multilevel and pyramid fraud

What direct selling is

Direct selling is a way of distributing products or services without going through a physical shop: an independent person presents and recommends them to another, usually in person, by phone or online. It is a legal and very old model, used by companies in very different sectors.

FitLine is a food-supplement brand of PM-International, a German company that distributes its products this way. Whoever recommends them does so as an independent distributor: self-employed, not an employee of the company and without a guaranteed salary.

What multilevel is

In a multilevel system, besides recommending products, a distributor can invite other people to do the same and receive compensation based on the sales volume of their team. Having this second level does not make a company a fraud: it is a way of organising compensation that exists in many countries and is regulated.

What it does require is more transparency, because compensation depends on several people. That is why you should read the compensation plan and the company's conditions rather than rely only on what the person presenting it tells you.

What a pyramid scheme is

A pyramid scheme is something else: the money comes mainly from the fees or payments made by people who join, not from selling real products to end consumers. To sustain itself it needs to recruit endlessly, and that is why it ends up collapsing. European unfair commercial practices rules list pyramid promotional schemes among the prohibited practices.

• In a pyramid scheme, what is paid is mainly for joining, not for a product or service with real value.
• In legitimate direct selling there is a real product that consumers use and reorder because they want it.
• A serious direct-selling business does not require you to buy stock you cannot sell or consume.
• If someone promises quick or easy money, be wary: it is a warning sign, whatever the company.

Questions to ask before you decide

You do not need to trust me or anyone: you can check for yourself. These are the questions I would ask in your place, and that I am ready to answer clearly.

• What product is really behind it, and is it sold to customers who are not distributors?
• What does it cost to start and what obligations do I have afterwards? Can I stop whenever I want?
• What do the contract and the compensation plan say, in writing and in my language?
• What happens if in six months the results are not what I expected?
• Who supports me and what training do I get?

My position: no promises, with information

I will not tell you that everyone does well: many people who try a direct-selling activity earn modest income or none, and it depends on time, consistency and each person's circumstances. Nor will I promise you income. What I can do is explain how it works, what it involves and what the conditions are, so you decide with information.

If after talking you decide it is not for you, or that you only want to get to know the products as a customer, that is also a good decision. First you get to know, then you decide.

Frequently asked questions