Welcome to Money for the Rest of Us. This is a personal finance show on money, how it

works, how to invest it, and how to live without worrying about it. I'm your host, David

Stein, today is episode 396. It's titled How Multilevel Marketing, Pyramid Schemes,

and Ponzi Schemes Differ, the Case of Forsage. When I was about 10 years old, my uncle came

to our house to visit my recently divorced mother and introduced us to a new business

opportunity that he had. It was selling cleaning products, soap. The company was Amway. Amway

was founded in 1959. It is the world's largest direct selling company. Amway distributes

and manufactures nutrition products, beauty, personal care, and home products. My mom didn't

join. She became a Tupperware distributor instead for several years. I recall us having thousands

of dollars of inventory in our basement. She did okay with Tupperware, but eventually

transitioned to real estate and other opportunities. When I was at university, a friend approached

me about a business opportunity. He wouldn't say what it was. I had to go to a recruiting

meeting. This was in the late 80s, and again, it was Amway. They talked about the potential

to earn cars, trips, money. I don't recall much focus on the product. I wasn't interested.

Then in 2007, another family friend came to visit. Again, to pitch me on a business.

It was called Quickstar, which was the name of Amway. They had changed it. Now they've

changed it back. I bought a discount card. I wanted to help out some. I had more means

to do so. I just didn't want to be an Amway distributor. I, like you, have seen friends,

acquaintances. Family members get involved in direct selling businesses, which are sometimes

called multi-level marketing. Think Amway. Tupperware. Mary K. Cosmetics. Different essential

oils companies. Numerous drink companies made from exotic berries. Here in Idaho, we have

lived in Idaho Falls. One of the largest companies, or at least one of the wealthiest companies,

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