I almost joined a particular MLM scheme (not gonna mention company name) back when MLM was new to me. The company did not change its name frequently, and they call themselves entrepreneurs as they are officially called IBOs (Independent Business Owners). In most cases, how MLM works is as follows: 1. You'll be invited by someone to a motivational seminar. 2. During the seminar, if you decided to join the scheme by paying a joining fee, you'll be recruited under someone's downline in a LOS (line of sponsorship). 3. After you're recruited, there is a compulsory minimum monthly purchases you need to make to keep yourselves in the rewards systems and accumulate some points. The points will "expire" if you do not do so, so you need to purchase more to keep the points alive. The prices of the purchases are usually marked-up at least 2 to 10 times so that the profit margin will be used to distribute incentives to the LOS. 4. Your upline will encourage you to recruit as many people as you can, as your downline by having them do steps 1) to current step. 5. The LOS is structured such that, the higher you are in the LOS, the more overriding incentives you will get over time. 6. Very few are at the top of the LOS such that the passive income in the form of incentives is sustainable to afford a luxurious lifestyle. By Math, if you managed to have 5 downlines, and each of your downlines has 5 downlines recursively from level 2 to level 7, the total strength is already about 1% of Singapore's population. Not many are able to recruit and build that number of people in their LOS. Regarding the flaunting of expensive cars, you will never know if the car is: - owned or rented, - paid in full or with mortgage. One can easily staged this by renting an expensive car and engaging a professional photographer, to create a FOMO effect while spending less.