I have a doubt whether MLM sites which use matrix form of system are legal. I had seen quite a few websites now popping up using matrix system to play their members and I am interested in knowing whether they are legal or not.
In many countries they are not legal and chased by the police, since there isn't any police on the Internet so far, I think they can do what they want. Most of such MLM business is big SCAM and the only one which is doing money are the guy's on the top!
I have been participating in an MLM scheme for many years before anyone was knowing about it and of course I got folled, it was ACN - the phone company ACN Direct Seller Telecom Services | Home-Based Business | Video Phone which is a multi million bunch of SCAM!
They are not a scam towards their customers but towards their resellers and affiliates. You should just for fun get into a sales audition with those scammers, they are full of s**t.
It is a huge business on the Internet, and I believe a few of them are legit and will give money to the participant. But would rather go for a other business / industry since no one knows who the legit company is.