MLM or Pyramid scheme - What is the difference?
Many people question the ethics of MLM. They claim that the people on the top get all the benefit from the people working below them, while the people below don't get much if anything at all. Nothing could be further from the truth! Think about where you work. Isn't it true that the boss is raking in the big bucks out of the money YOU are making for the company? And if there is cutbacks who is the first to go? Definitely not the boss and probably not his bonus. With an honest MLM, you can easily make more than the boss if you put the effort into it. He gets a little bit from your sales, but you get the lion's share. But isn't this just a big 'pyramid scheme'? Yes and no. Anyone who works a conventional job is in a pyramid scheme. Every company, army, and government in the world is built on the pyramid concept. However, with multilevel marketing, you aren't held back by the people above you like you are in a conventional job. With an MLM, you can build your business as large and as profitable as you want it to be. So, what is a Pyramid scheme? These illegal scams involve a large number of people at the bottom of the pyramid, all of them paying money to a few people at the top. Each new participant pays for the chance to advance to the top and profit from cash paid by others who join down the line. Pyramids resemble a legal MLM in structure, but there is an important difference. Pyramid schemes seek to make money from you, while multi-level marketing seeks to make money with you. The Direct Selling Education Foundation suggests that, before you sign up with a company, you ask yourself these three questions: 1) How much am I required to pay to become a distributor? An MLM company will generally charge a small start-up fee. Pyramid schemes make most of their money from signing up new distributors, so their start-up charges are often very high. These start-up fees may be called many things and you may be told they are required or are recommended purchases for training, computer services and product inventory. 2) Will the company buy back unsold inventory? Honest companies will usually buy back any products that you fail to sell. Bogus
companies will stick you with the inventory. 3) Are the company's products sold to customers? Pyramid schemes gain nothing by actually selling a product, and often don't sell anything at all. They focus only on gaining new investors. Be wary if you must start by buying a large amount of product. Also, take a good look at the product itself. Multi-level marketing depends on quality products that are well-priced; pyramid schemes do not. Pyramid schemes are much like chain letters; they require mathematical gymnastics that cannot possibly work. Pyramids always collapse in the end, and only a very few (usually the con artists themselves) make any money on them at all. As with any other investment, before you commit ask questions about the company, its products, start-up fees, buy-back policies and its earnings. Take your time and investigate any information you're given. Talk to other investors and research the company. Don't act hastily! You have permission to publish this article electronically or in print, free of charge, as long as the bylines are included. A courtesy copy of your publication would be appreciated. Paul Marsland is an independent distributor for a Multi-level marketing company with 25 years of experience and trading in 59 countries worldwide. Along with his wife Annette they run a successful MLM business, full time from home, around their young family.
For more information please go to:
http://livin-the-good-life.biz/?refid=ezineaticle-567883263
Related News
Mlm, Network Marketing, And Cash Gifting - What Are They? - 3x24 - Your Newspaper and News Magazine
Big Ten Network-Charter Announcement Causes Some To Change Marketing - WISC
Go For MLM Marketing Success - Corsavoo.com
Go For MLM Marketing SuccessCorsavoo.com, France -Aug 27, 2008And to have confidence with your own abilities with your Network Marketing opportunity will require experience. This takes time and it is very easy to lose ... |
Top Network Marketing Companies -- 10 Things To Watch Out For - Corsavoo.com
6 Ways to Keep Your Network Marketing Downline Around - 3x24 - Your Newspaper and News Magazine
6 Ways to Keep Your Network Marketing Downline Around3x24 - Your Newspaper and News Magazine, Germany -Aug 26, 2008by Matt Hellstrom How do you keep people from dropping out of your network marketing downline? This is probably the number one question of network marketers ... |
First Financial Network, Inc. Announces $23 Million SBA Loan ... - MarketWatch
Cable Network, Meet Social Network: Match Made in News - or ... - TechNewsWorld
Ten Qualities of A Network Marketing - Corsavoo.com
Ten Qualities of A Network MarketingCorsavoo.com, France -6 hours agoBecoming a network marketing superstar with your network marketing company is achievable if you follow a few simple steps. Here are 10 steps to get you ... |
Money Making Opportunities Using Perpetual Leverage - 3x24 - Your Newspaper and News Magazine
Money Making Opportunities Using Perpetual Leverage3x24 - Your Newspaper and News Magazine, Germany -6 hours agoThe fact that it combines both direct sales and network marketing may help to explain why perpetual leverage is the best network marketing pay plan. ... |
Boundless Network CEO Jason Black Named to ASI HOT List - MarketWatch
|
|
 |
|
|
RELATED ARTICLES
Finding Network Marketing Leads
Getting a network marketing lead.
MLM Success Training - The Secrets to Deciding Who You Will Become in MLM
There are many factors that impact Success in life. And that is true for MLM and Network marketing as well. There are also factors with any good training program, and these ultimately will determine the success of your teaching.
The Concept of MLM Mega-Mind
In the old days we would play in the woods and be home for dinner by 5:30.
MLM, Pyramid Schemes, and Matrices
Have you ever wondered what the difference is? MLM operators claim they're not operating a pyramid scheme. Matrix and "forced matrix" operators claim that what they have is better than MLM. So what are the differences?Pyramid Schemes:Pyramid Schemes are illegal in the USA, and probably abroad. We all know how these schemes work, or at least get the jist of the idea. A person (the originator) starts by sending a message to several people. Usually people he/she knows. The message in some round about way, will tell everyone to send him $5 or so...and then send the message to someone else. All the while adding names to the list, and each new recipient must send money to the first person, second person...etcThere are a million variations of the Pyramid Scheme, but the main attribute that define a pyramid scheme ( also known as chain letter) is that there is no product, it's just people sending money. The term "Pyramid Scheme" is derived from the fact that it starts with one and the size of those involved increases as you move towards the bottom. On paper, it looks like the shape of a triangle, or pyramid.Multi Level Marketing:How is MLM different from a pyramid scheme? After all, on paper any MLM looks like a pyramid in reality right? The differences are very simple. In MLM there is a product being sold. Income is generated from "commissions". It's actually a pyramid scheme, except that the participants get something back...regardless of whether the people they refer actually pay for something...In MLM, the participant always gains from their investment. The catch is in the value of the product that the participant receives. This is the reason that MLM is so big on the internet. Because, information can have a monetary value, and it cost the distributor nothing. So ebooks, software, newsletters...etc... these are the most common products used in MLM. MLMers have added tangible products as well, and home products were the first to use MLM as a primary marketing strategy.The Forced Matrix:With so many MLM programs on the market these days, originators have tried to make their programs more desirable than others. Hence the forced matrix idea. In a regular MLM program, your monetary gains are based entirely on how good you are at marketing the program. However, most people arent' very good. So it would benefit the less talented if they had help from the talented. Basically, if the number of people who can join under you is limited in any way...then it's a forced matrix. The idea being, anyone else you refer extra..will go under someone else. The best implementations put the extra person under one of the people YOU have under YOU. Hence it helps the person under you, which helps you too.The term is tossed around a bit, and sometimes not used at all. However, that is what defines a forced matrix. Sometimes numbers are used to describe a forced matrix more thoroughly....like "4 X 4 forced matrix" for instance. Which might mean that you can only have 4 people directly under you and only 4 people under those 4 who you recieve commissions from.There is a hi-bred idea that has become common now, where by a person can deliberately place a referral in another line of their choice. A sort of traffic control attribute that helps originators get their referrals interested. This has been an attempt to make regular MLM more appealing, and it has worked. In fact, forced matrix MLMers have even implemented the option in their own programs.The benefits of either are about equal. With a forced matrix, you stand to earn an income faster, but increases in income are slower because your referrals get forced further down the line from you. With regular MLM you have a stronger base, and sustaining it is generally easier...but first profits can be slow. If you want a little income faster, go with a forced matrix. If you want BIG profits and are willing to work a long time for it, go with regular MLM programs.
The Truth on MLM Can Set You Free
Truth on mlm
Why One Should Chose A Network Marketing Home Based Business
There are many advantages for having one's own business but I believe a network marketing home business has to be the crème de la crème. Network marketing above any other online business will continue creating the most online entrepreneurs. Firstly ask any of the successful online entrepreneurs are they happier with the amount of time they spend with their families and the answer will be predominantly yes. That has to be the biggest advantage.
The Lurking Affiliate and MLM Junkies
Ever since the introduction of money making programs became available. Mis-guiding experts decided to become more of a nuisance than provide realistic help to the newcomers on the net.
Online MLM Business Is Booming!
The time to start an online MLM business has never been better. With more and more people and businesses going online, a significant number of business owners are looking to the Internet as the source for the new business opportunities of tomorrow. Even after the Internet bust of the 90s, traffic on the Internet is at an all-time high. Starting an online MLM business from your home is an attractive and often lucrative option that deserves to be explored.
Five Steps That Will Help You Succeed in Niche Marketing
Niche marketing is a manifestation of how much internet marketing has evolved in recent years. Niche marketing is based on a real world model, that is, it is a business strategy that is focused on real people with real needs and with real money to spend.
Why Would Anyone Consider Network Marketing
Extra income, extra income, extra income!
Residual income, residual income, residual income!
That's it, plain and simple.
No Romance, No MLM Downline
NO ROMANCE
MLM Network Marketing Training - Are You Fooling Yourself Out of MLM and Network Marketing?
Are you fooling yourself into believing that you actually are working this business?
Networking: 5 Fantastic Ways To Network Effectively
It seems as if everybody is into networking these days but only a handful of people know how to network effectively. Don't miss out on golden opportunities to become acquainted with those who can help you personally and professionally. Follow my list and you'll be utilizing all those fantastic new contacts in no time!
MLM Success Secrets- MLM Success in the FAST Lane
I had an upline once tell me, who by the way, has done 6 BILLION in this industry, that you need to work your business fast, not slow, and rapidly, not timidly. And if you did this one thing, your Network Marketing business would become more successful and the business would become easier. That alone would help start building some momentum, and build some real Power within your business.
Who Else Wants Their Share of Residual Income Without Having To Go MLM?
(or how I increased my monthly revenue while sitting at the beach in Africa?)
Network Marketing Training - The Sounds of Extraordinary MLM Success
What does MLM Success REALLY sound like?
2 Steps to Spur Your Downline Into Action!
It is often the case when you join a Network Marketing
program, you start signing up people into your downline and
they don't do anything. They join and then they don't take
any further action, expecting to make money by doing
nothing.
Trapped and Want Out?
Do any or all of these statements sound familiar or resonate with you?
Do You Really Want To Try Network Marketing?
Make no mistake it takes a unique skill set to become a successful network marketer. I have developed a list of questions that someone interested in network marketing can ask themselves to see if they are up to the challenge.
Network Marketing Does Not Only Build Serious Business, It Also Builds You
Network Marketing is an easy way for an ordinary person to build a massive worldwide business. The business you build is just like any other business but with many of the hassles removed.
|
