httpwebwitch - 7:59 pm on Sep 29, 2009 (gmt 0)

a company that uses multi-level marketing has to make sure commissions are earned only on sales of the company's products or services if they cross state boundaries. If participants are paid primarily from money received from new recruits, or if they are required to buy more product than they are likely to sell, then the company may be a pyramid scheme, which is illegal in most countries

source [en.wikipedia.org]

disclaimer: IANAL (I am not a lawyer!), so any advice I give is merely anecdotal common sense, not actual legal counsel

Your risk is minimal. Legal authorities (if it is deemed illegal) would go after the dude at the top of the pyramid, not the subcontractor who did some designs for the developer who built their web interface.

But beware, if their business is illegal, then you accepting money from them directly or indirectly could result in some unwelcome consequences, if they are ever investigated.

If you have the luxury of saying no to this job, then say no and move on.

And don't get yourself sucked into a MLM scheme - they are usually a financial money pit for the gullible, greedy, and desperate.