Is the Network Marketing Pyramid Legal?

No one wants to be taken in by an apparent scam

. That is why some may have serious reservations about signing on with a network marketing pyramid venture. They do not want to get suckered into what may be little more than a pyramid scheme. For those not familiar with what the term pyramid scheme refers to, this would be a top down profit generating venture where only those at the top actually make any money. Such scams are definitely worth avoiding since there is no way you can get a return on your investment.

But it is also wise to avoid ignoring all the network marketing opportunities that come your way. Why is this so? Basically, legitimate network marketing pyramid ventures are not pyramid schemes. A scheme is exactly that - it is something illegitimate posing as an actual business opportunity. Network marketing, by its very nature, is a simple concept that helps provide an effective method of earning a residual income. It does not seek to steal people's money.

At the core of a network marketing business is the notion that you bring in people under you to both promote and sell a product or service while simultaneously collecting commissions from those that may be under you in the down line. Again, this is a very simple concept although it has been abused by some.

Does that mean that all network marketing concepts are completely legitimate? No, there are more than a few proverbial bad apples out there. There are also scores of excellent companies that provide effective wealth generating plans.

How can you tell the difference between a service that is legitimate and one that is considered a complete network marketing pyramid fraud? Basically, you need to examine the attributes that the network marketing business brings to the table.

The product or service that the network marketing company provides must be a legitimate one. That means it must have actual value and there must be a demand for it. Less than desirable or valuable products or services are not the hallmark of a legitimate MLM venture.

The costs and fees associated with signing up to the service must be reasonable. When you are required to pay outrageous amounts of money to sign up with the company, they can frequently be considered a serious red flag.

Are training materials provided and if so, do the materials have any legitimate value? You definitely do not want to sign on with a program that leaves you hanging and avoids presenting a method of training those in the network. After all, the goal here is for all the members to be successful. A decent training and support system will enhance the odds of this immensely.

What is the commission structure? Is it fair? Can you reasonably make huge profits (or even any profit) from the venture? Those network marketing ventures that pay off excellent commissions are usually the very best ones to work with - bar none!

You do need to exercise a little judgment when exploring options with a network marketing pyramid offer. You want to stick with the good offers and avoid the rip-offs. It is as simple as that.

Is the Network Marketing Pyramid Legal?

By: Brian Garvin & Jeff West

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