In Contrast Pyramid Schemes Often Do

Business, Network Marketing.

7 differences between pyramid schemes and mlm - if you stay in network marketing( or mlm) long enough you will eventually hear someone say some version of, "oh, that' s one of those pyramid schemes. " or, perhaps you' re saying that to yourself right now regarding network marketing. In fact, you want to avoid pyramid schemes all together.

However, network marketing business programs are not the same thing as pyramid schemes. - how? There are at least seven differences between network marketing programs and pyramid schemes: 1) Pyramid schemes are illegal. What' s the difference? Network marketing business programs are legitimate and provide a viable, lucrative way for a person to earn an income - as long as that person has the skills and abilities required to build a network marketing business. There are a lot of people out there trying to build network - marketing businesses without first developing the language, prospecting and recruiting skills necessary to build a stable, successful business. 2) MLM business programs do not require large start up costs.

This is actually why network marketing gets a bad rap. - in contrast pyramid schemes often do. Most MLM companies provide their distributors with a web site from which people can order and have product shipped directly to them from the company. So, if a requirement of any program that you' re considering is to invest a lot of money to get started, be wary. 3) Nowadays MLM companies do not require their distributors to carry inventory. If you' re being asked to buy and store a lot of inventory you may be dealing with a pyramid scheme. 4) MLM companies have a market for their products. Avoid the program. 5) Network marketing companies have a strong focus on their products and getting those products in the hands of consumers. If there does not seem to be consumer demand for the company' s products, it may be a pyramid scheme.

Pyramid schemes will focus on fast profits by getting other people signed - up, with no regard to whether these people use the product or service. 6) Pyramid schemes will be designed such that a person makes more money - recruiting people into the business versus by the volume of product sold. - if a commission is offered for recruiting people into the business, you could be looking at a pyramid scheme. MLM programs are volume driven. 7) Network marketing companies do not provide compensation for recruiting new people. Take a few minutes to run any program that you' re considering through the above 7 points. So, there is no reason to settle for any type of pyramid scheme. There are many legitimate MLM programs available today.

Once you' ve decided upon which program you' re going to join, consider getting the training you need to develop your language, prospecting and recruiting skills.