Networking or Multi-Level Marketing is legal, moral and ethical. Networking is based on the principle that you own the network which you established and you are getting paid for the growth of your network irregardless of who does the work.
The YOU on the network receives an amount similar to the amount being received by song writers, singers and artists and their heirs and assigns as royalties for their literary works.
Many thought of networking or MLM as scam because they are not familiar with the business structure.
Suggested Readings
Robert Kiyosaki on Network Marketing
