who is doing the scamming in MLM scams

The guy trying to get you to sign on to the particular MLM is probably not part of any scam. He, or she, is not the one scamming you. This person really believes that the company is good, the product is good, he and you both have a great opportunity to make great money with this direct marketing approach, etc.

The truth is that he is as much of a victim of the scam as you are (or, I should say, as you would be if you would sign up). He just doesn't know it yet.

Of course, this is not to say that nobody ever makes any money in these MLM scams. That is not true. Some people do - just the chances are stacked extremely well against you. More on that later.

The MLM scam is based on them getting lots of people to sign in to the program, each spending at least the minimum monthly purchase, plus whatever training expenses they throw in along the way. That money gets divided among the people along the chain going up. The problem is the people who sign up more often than not stop being involved int he company very quickly, as they exhaust their network of friends and relatives trying to sign them all up.

After that, they have spent a decent amount of money on minimum monthly purchases plus fees, and now see no prospect in sight for future income. They generally drop out of the program, having lost the money that was put into it.