Difference Between Pyramid Schemes and Multi-level Marketing

Lets Talk About Mula!

 

Ok. I’ve been hearing a myriad of things people are saying surrounding allegations about all network business opportunities being pyramid schemes. But not all network marketing companies are scams. Perhaps, if you do not understand what a pyramid scheme is, PLEASE let me enlighten you ūüėČ

What is a pyramid scheme?

A pyramid scheme is defined as an unsustainable business model that involves promising members  services primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public.

Associations have been made between pyramid schemes and multi-level marketing because of words such as “downline”, “upselling”, “compensation plans”, etc. But I assure you that these two phrases are two completely different things. A pyramid scheme has no products, period. Their sole purpose is to recruit people to invest in an opportunity to recruit more people, luring you in with a low-cost start up fee. For this reason, pyramid schemes are ILLEGAL!

 

What is multi level marketing?

Multi level marketing can be defined as¬†a¬†marketing strategy where the sales force is compensated for sales they personally generate and for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant’s “downline”, and can provide multiple levels of compensation.

The main focus of an MLM is to sell a product or service, not to recruit new members. Most compensation plans of Network Marketing appears as a pyramid because of low advertising costs. Multilevel [Network] Marketing is advertised through word of mouth or NETWORKING and usually sold through referrals. Instead of paying for media advertising, MLMs reward their members with commissions in return for selling the products of the business. Every MLM’s compensation plan is different. However, it doesn’t matter whether you are a starter of the company or a beginner in the industry. EVERYBODY has a fair shot at making money. It just depends on your determination, persistance, and self motivation.

 

What is a “Get Rich Quick” scheme?

A “get rich quick” scheme is exactly what it sounds like. It is a scheme masked as a business opportunity to make easy money quickly. Any company that offers you quick money for doing nothing or close to nothing is a lie. Nothing in life is that easy, sp be prepared to work diligently. Quote —->> If it’s too good to be true, it probably is ūüėČ

 

How can I tell the difference between a legal MLM and and an illegal pyramid scheme? 

Well the first thing you must always do no matter what company you want to associate yourself with is DO YOUR RESEARCH!

Moreover, here are some questions you can ask either yourself or the company (upline or sponsor) upon joining…

~Can you make a sustainable profit from just selling the products without having to recruit a single person?

~Are they selling legitimate, quality products that are useful?

~How much of the product is sold to retailers (customers who are not distributors)?

~How long does it take tomake money and how many people do you need to recruit to make money?

~What’s the failure rate and average compensation for p/t-f/t involvement?

~Do they provide good training?

~How long has the company been around?

 

Be an intelligent entrepreneur and consider this article when are fishing for your next Internet Marketing company. Always ask these questions so you won’t get scamed out of your money. Always remember that anything worth having involves hard work. Go get your beach mansion…

 

For more information about Wake Up Now or to join, email me at msturquoisemoney@gmail.com

Add me on Facebook: 1kimmcgrew

 

 

 

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