Trap to avoid

Multi-level marketing / network marketing

Schemes where income comes mainly from recruiting others and buying starter kits.

Strong evidenceLast checked 24 Oct 2026

Why we advise against it

When income depends on recruitment rather than sales to outside customers, most participants lose money once kits and monthly minimums are counted. Pyramid schemes are illegal under the Consumer Protection Act.

Before you put in money or time

  • Be wary of paying to start, to "unlock" earnings or to upgrade a level. Real employers and clients pay you.
  • Check that it actually works for people in South Africa, and how you would be paid.
  • Never share a one-time PIN (OTP), your banking login or a photo of your ID.
  • Anything that takes your money to invest or trade must be authorised by the FSCA. Check the FSCA register first.
  • If you earn mainly by recruiting people, it may be an illegal pyramid or multiplication scheme under section 43 of the Consumer Protection Act.

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Questions people ask

Is multi-level marketing / network marketing a good way to earn in South Africa?

When income depends on recruitment rather than sales to outside customers, most participants lose money once kits and monthly minimums are counted. Pyramid schemes are illegal under the Consumer Protection Act.

How do I check an offer like this?

Never pay a joining or activation fee, never share an OTP, and check investment offers on the FSCA register. Our free scam checker shows which known warning signs an offer matches.

Sources (3)

Researched by the Earn Path team · editorial policy · every option we have researched