Pyramid Schemes vs Network Marketing

The definition of Pyramid Scheme is a non-sustainable business that

involves the exchange of money, usually in the form of a sign-up fee,

and usually has no product or service.

Since there are no products or service to sell. The only way to make

money is by signing up people for a fee. This makes it impossible for

people on the bottom of the pyramid to make any money because once the

scheme hits a certain level you stop making money. The only people who

make money are the people a top the pyramid. I know what a scam right?

why anyone would spend money on a something that doesn't offer a

product or service is beyond me. Any company that promises you money

for doing nothing is not being honest with you.  Lastly Pyramid Schemes

are Illegal.

Pyramid Schemes can usually be identified by the following.(RED FLAGS)

1. The company has a very vague description of what they are

about. The only way to get answers to your questions are after you sign

up
2. The offer no product or service.

3. All or majority of the money you can make is from sin up fees from

members you have brought in to the company.

4. Lastly the company keeps reassuring you that the company is Legal.

The definition of Network Marketing is a direct selling method in

which independent-agents serve as distributors of goods and or

services, and are encouraged to build and manage their own sales force

by recruiting and training other independent agents to do the same.

Commission's are earned on the agent's own sales revenue, as well as

on the sales revenue of the sales-force recruited by the agent and his

or her recruits (called downline). Network Marketing is also sometime

referred to is Multi Level Marketing (MLM).

Your success in Network Marketing depends on your ability to sell your services and products.

Network Marketers or Multi-level marketing companies follow a similar

concept to a pyramid scheme, which is a reason for most of the

confusion, except that two significant differences exist.

One difference is that members at any level of a multi-level marketing

model can make income through the company’s products and/or services

without signing up any new members

The second difference is that members of any level in a multi-level

can advance past the people who signed them up.

Finally,multi-level marketing companies are LEGAL!