| So why isn't Network Marketing a Pyramid Scheme? | | | | perhaps rename them Madoff Schemes! |
| A pyramid scheme is the same as those chocolate | | | | If in doubt ask yourself: "What product or service is |
| bar chain letters you or your kids might have received. | | | | being sold to make the money?" |
| The letter states that if you send one chocolate bar to | | | | Network Marketing is about selling goods and services |
| the person who sent you the letter and then pass the | | | | In Network Marketing you start at the bottom (as we |
| letter on to six other suckers (I mean "friends") they will | | | | do with most organisations) and start selling products. |
| send you six chocolate bars.Some letters even go so | | | | You make your money from selling the products. As |
| far as to threaten you or your children of they don't | | | | you recruit and train other network marketers they |
| pass on the letters or "break the chain". I've seen | | | | make money from selling products and the company |
| letters sent to small children telling them if they don't | | | | compensates you for training them. In the past |
| join the pyramid scheme their mother will be killed in a | | | | network marketing usually meant your long lost friend |
| car accident! | | | | or sister-in-law invited you for tea and an hour long |
| It's worth noting that in most countries participating in | | | | spiel later left you empty of pocket and with an armful |
| any pyramid scheme is illegal so if you thought letting | | | | horrifically expensive dishwashing liquid / plastic |
| your kids pass on chocolate bars was harmless fun | | | | flibbidy-gibberts / anti-ageing face masks. |
| you may wish to reconsider training them up to be | | | | Fortunately the internet has been invented and now |
| duped later on in life! | | | | network marketers can look for people who actually |
| A pyramid scheme relies on the next person down | | | | want to buy their products around the globe and most |
| supplying goods to the person above for NOTHING IN | | | | of us are safe from "Checkbook Dinners". This, in turn, |
| RETURN. After 16 layers of six people sending six | | | | has made network marketing a lot more viable than it |
| letters you actually run out of population in the world to | | | | was in the past. For those of you looking at network |
| keep sending goods up the line. So a pyramid scheme | | | | marketing for the first, or second, time after years of |
| eventually has a bottom - wherein lies the problem | | | | skepticism you need to realise the way we can |
| because the vast majority of participants are at the | | | | promote these products has changed and in response |
| bottom and have no-one below them to supply the six | | | | to an increased interest in marketing online a number |
| chocolate bars. Pyramid schemes are illegal because | | | | of companies providing online marketing training and |
| they don't work, eventually you will bottom out and | | | | services have cropped up over the last few years. |
| only the person (or people) at the top benefit. For a | | | | As a home based business, network marketing can |
| person to make money (or get chocolate bars) in a | | | | provide flexibility and most companies include full |
| pyramid scheme someone else has to GIVE GOODS | | | | training of their distributors. They key to network |
| AWAY because there is no product being sold. | | | | marketing is duplication, as long as you are willing to |
| There are some super-elaborate pyramid schemes | | | | follow exactly what the people above you in the |
| scams around with fancy investment brochures and | | | | business are doing you can, hopefully, get the same |
| flash presentations which can make it difficult to tell the | | | | results. Like a Franchise Business, network marketing |
| scam from the reality. These are also called Ponzi | | | | follows a set formula for promoting, pricing and |
| schemes after Carl Ponzi who took millions from | | | | distributing products for business owners to follow. Like |
| investors and then used money taken from later | | | | any business you should do your research first and |
| investors to pay "returns" to the early investors so | | | | reassure yourself that you are signing up for a |
| they'd keep investing. Although nowdays Bernie | | | | legitimate company and not an elaborate scheme. |
| Madoff has so outdone Ponzi at his game we should | | | | |