| |
| |
|
Network Marketing Information |
|
|
|
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.
MORE RESOURCES:
Google News |
 |
|
|
RELATED ARTICLES
The Case For A Network Marketing System Networking Marketing systemModern congested lifestyles makes it very difficult to carve out time for residual income development. However, facts show us that it's needed now more than ever. What Network Marketing is NOT There are so many misconceptions flying around out thereabout what network marketing is or is not. Let's takea few seconds to review what network marketing is NOT. MLM Network Marketing Success Training- The BLAZING Top 52 MLM Recruiting Tips- Part 1 Bookmark this page and refer back to it! Send it to your team and SET THEIR BUSINESS ABLAZE!!!Here are the first 26 tips of the BLAZING Top 52 MLM Recruiting Tips:1) "Focus ONLY on what the prospect wants, not you."This is simple and to the point. How To Do Effective Keyword Research To Find Good Niches It is true that with online business, the entire world is your market. However, the entire world would be your competition as well, so things will eventually balance out just like in offline commerce. 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. The Dirt On MLM When I told a friend of mine about my information quest, he asked me to do some research on MLM. The first person I talked to was a friend of mine that always seemed to be involved in one enterprise after another. Ideas On Promoting Your Home Business Opportunity Have you got yourself into a home business opportunity but don't know where to begin to generate yourself some leads? That happens among many of us that join a home business opportunity, you are not alone. Many will join and give up before really putting any effort into the business. Why You Should Start Your Own Online Business - The Power Of The First Step 10 to 20 years from now, most of us will regret for what we have not done rather than what we have done. Think for a moment, where will you be in 10 or 15 years? Who will you have become? How will you live?Now is the time to design the next 10 years of your life - not once they are over. Contextual Ad Networks - The Baby Boom Is Upon Us No, this baby boom will certainly not swamp the Social Security system (sort of a bad joke for those that live in the UnitedStates, but many other countries.. Discover the Incredible Power of Ethics in Online Network Marketing ?build trust and watch the cash roll in!As you are reading this article, the tide of the world is changing rapidly. More and more people are taking charge of their own lives, taking responsibility of their own future and taking control of their destiny. Traditional University or MLM University? You Choose Time moves very fast and time is money, as they say. When people seek other types of knowledge in life, such as general knowledge acquired from traditional schools, colleges and universities, they are prepared to wait and spend 3-7 years before they can see result they seek such as grades and Degree. How To Buy MLM Leads You may wish to buy MLM leads from a reputable source when your business had out grown the standard friends and family network. There are hundreds of companies that want you to buy MLM leads from them. Ten Steps to MLM Success First, here's my tip of the day: There are proverbs etched on the bellies of those statues on Easter Island. And one of 'em is: He who laughs at your stupid jokes is up to no good. Multi level Marketing- The Three Top Secrets of Multi level Marketing Success So many times we have seen in this industry people not really understanding Multi level Marketing, and because of that, truly do the industry a disservice by leaving the industry, and then saying bad things about it. True, charlatans are in every industry, but if they had only known and embraced the three secrets that I am going to cover, it might have ended up a different result. To MLM or Not to MLM Whether you want to be your own boss or you want to be handsomely rich, the internet offers great possibilities. Maybe too many!You hop on the internet only to find yourself being pulled in so many different directions that you don't even know which way is up. Network Marketing Companies Network marketing companies are mushrooming up everywhere these days. It's really hard to distinguish between good, reliable network marketing companies and those that are just scams. Increase Business by Squashing Your Fear of Phones Phone skills are very important when you have your own home business. If you are like me, when I started out, then you may think you are going to work entirely online and not use the phone. Network Marketing Training - Secrets to Inoculating Yourself Against Negative People The Inoculation, What You Are Going to Face in MLM.When you want to prevent something from infecting your body, what do you do? You get a shot, or an inoculation into your body. Home-based Business Opportunity, Anyone? It seems home based opportunities are a bit more common in the US than in Europe. However, the European marketplace is quickly catching on to the phenomenon of home based business and network marketing. How To Choose a Good MLM or Network Marketing Company? You've heard many horror stories about MLM /network marketing programs. But what you are really hearing about are stories relating to illegal programs or pyramid schemes.
|
| home | site map |
| © 2007 |
