Pyramid Scheme Vs. Network Marketing

[Justice44]

Many people think all network marketing opportunities are pyramid schemes. This post explains the difference:

Network Marketing is somewhat like franchising. In fact, it is sometimes described as "The People's Franchise". Both give the right to do business with the use of the company name and the use of an established or duplicable system of doing business EXCEPT network marketing does require distributor to pay for expensive and an upfront franchise fees.

In seeking a viable and sustainable network marketing distributor opportunity, three basic components must exist. These are:
1. Quality of the Product Value
2. Quality of the Company
3. Quality of the Compensation Plan

With the presence of this 3 factors, a network marketing distributor must offer three initiatives to match or maximize the business opportunity offered by the company. These are:
1. Quality of Prospect (your connection)
2. Quality of Effort and and time (your passion)
3. Quality of leadership (your mission)

How Do you make money in Network Marketing?
Distributors are paid not only for their personal sales but also from the sales of their downlines upon reaching a qualifying rank and/or volume. This enable ordinary people to start on equal footing with everyone else at the begining of their network marketing distributorship business.

Pyramiding/scams What is it?
Network marketing is not a pyramiding scam. The only similarity between legitimate network marketing and pyramiding scam is that both offer an incentive for one to introduce another to the business. They are however, differ in 3 aspects.
1. Pyramiding - fraudalent and not a sustainable operation.
2. Pyramiding is not legal
3. Pyramiding companies pay commissions on people recruited while network marketing schemes pay stricly on retail sales and none on people recruited.

Hopefully, this information is helpful to many who want to know more about network marketing.

[ianpalmer]

I joined a network marketing business not to long ago and I am really impressed with what the product has done to my family and friends around me but I still have a hard to selling it because there are so many other products that claim to do the same as mine. I guess I need to dig deeper and find people that are more open to alternative health.

[Philip06]

Well, multi level marketing is known as network marketing. This business makes a person associated to a company in an independent transaction approach. This is a kind of business where franchising and direct selling are combined. Network marketing isn’t a get rich quick business.

The Network Marketing or Multi Level Marketing (MLM) business is set up to provide long term income in the form of residual income, not fast short term income. It all depends on you to make money online. Give people what they want and you can make money online. In online marketing world, time and money go in reciprocal paths in general. The word network marketing has a great impact than any other business terms in the market today. Network Marketing or MLM is one way to add residual income to your life. Network Marketing online is all about increasing your visibility and being consistent with your message.