At the core of it, MLM is a legitimate business strategy to get a relatively unknown product distributed through a network effect. I create a meal replacement

At the core of it, MLM is a legitimate business strategy to get a relatively unknown product distributed through a network effect. I create a meal replacement smoothie. Some friends want to try it, so I hook them up. Then friends-of-friends ask about this smoothie that isn't available, so I let them sell the product to other people in exchange for a cut. I quickly realize that I don't have the capital for to materials. Product is moving too fast, so I ask them to pay up front for some of the materials. The problem is that this benign relationship that helps both of us can be easily made predatory.