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Before we proceed to study how to avoid scam, allow me to ask few important questions here.
And my questions are:
1.What exactly Is Pyramid System ?
2.What exactly Is
MLM ?
What is a Pyramid System ?
The TRUTH :-
All businesses are based on a pyramid structure that comes with 
                                                                                         OWNER
                                                                      MANAGEMENT TEAM
                                                                                  SALES TEAM
                                                                                 CUSTOMERS

However, in illegal pyramids,you can never make more money than the person ahead of you.

And;
What is MLM?
MLM or Multi-Level Marketing=Network Marketing.
The GOOD NEWS for MLM is anyone can get in.The BAD NEWS for MLM is anyone can get in.Unfortunately,people can create a bad perception of a really good thing.Some people where they started with nothing become millionaires or multi-millinaires because MLM.With MLM or Network marketing you invest yourself and your time to create a return that can get you back your time while bonuses keep coming in.This is why million-million people flooded the MLM industry.