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





Oprah Understands Network Marketing. Do you?

“The Millionaire School Teacher” explains to Oprah why network marketing is the difference between a rich person’s mindset and a poor person’s mindset.

Never work for money. Make money work for you.



What do the rich teach their children that the poor and middle class do not?

Investments and¬†Assets! There is a huge difference between investments and assets. Many people don’t even understand what either of these are because they were never introduced or even exposed to this vernacular. An ASSET is anything that you own. An INVESTMENT is an ASSET that you buy in hopes of generating an income (sort of like gambling lol)

Paul Roger took $300 and started his own home-based business. By doing this, he was able to gain control of his taxes and was able to buy more and more assets (which is what you want), then he flipped foreclosed houses.

There are two kinds of money problems: Not enough money and too much money. Giving money to a poor person is what keeps them poor. I think the main problem for poor families is that parents tell their kids to stop dreaming. Society wants us to work hard and do our best so that we can get a job we hate and work for someone else, struggling to pay bills, while the CEOs and Exec VP’s are living lavishly.

Society always tells us to go to college, get good grades, have good internships so we can get good jobs. Why? So that the world can chew us up and spit us right back out. 83 percent of all college students DO NOT have jobs lined up. So while we spend $50,000+ on college tuition, plus another $10,000 on food/meal plans, plus another $5,000+ on books, on top of another $12,000 on living expenses, how much are we getting paid in return? $0.00. WAKE UP! Almost every student goes to college right after high school and they choose a major that does not have a decent return on investment, but how would they know that? They are too busy feeding into what society says that college leads to more opportunities. What opportunities? Unemployment?

I’m not saying don’t go to college; I graduated college. I’m simply saying, while you are in college, take two hours out of your day to make some money by doing exactly what you already do on the internet. College doesn’t pay your rent. They may put food in your stomach if you have a meal plan, but you still have to pay for it. The professors could care less whether they see your face or not, they still get paid. The security guards don’t even carry guns and you think you are secure and they still get paid whether you are secure or not. The president is sitting on probably $200,000+ from you, but who is paying you? Work Study? Now they are talking about paying the student athletes which I am 100% against because it’s not fair to students who are not athletes receiving the exact same education. ¬†Look I can’t tell you how to think. You have to observe and realize a better outlook for yourself.

I challenge you to stretch your limitations. Tell yourslef the sky is no longer the limit because there are footsteps on the moon!

The ‘SECRET’ to success is not hard work or luck!! Never work for money. Make the money work for you.



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

Add me on facebook: 1kimmcgrew



Entrepreneurship is living a few years of your life like most people won't so that you can spend the rest of your life like most people can't!