Network Marketing Pyramid Scheme Or Legitimate Business Opportunity?

Network marketing and pyramid schemes are often grouped together as the same thing

, and that is unfortunate. If more people understood that all network marketing opportunities are not pyramid schemes, more people would take advantage of this rewarding opportunity to start their own business.

If you like the idea of being your own boss but dont want to get suckered into a financially damaging network marketing pyramid scheme, keep reading. Its time to learn how to identify legitimate money-making opportunities from the typical pyramid scam.

The Power of Product

The product will always serve as a clue as to the legitimacy of a business opportunity. Legit businesses stand firmly on solid products that consumers want to purchase. These products have honest markets, and you probably wouldnt mind buying these products yourself. These products can only be purchased through distributors, but they are real products that are a major component of the business.

Network marketing pyramid scams often have no clear products. If there is a product involved, it is not a big part of the business. You are not rewarded much for selling the product, and in many cases you wouldnt want to purchase it yourself. If you look over a business opportunity and have to ask what product is being sold beyond the business sign-ups, you are probably dealing with a pyramid scheme that will cost you more than it earns you in the end.

How Do You Profit?

When you look over any network marketing business, identify what you would have to do in order to be financially successful. If the plan rewards you primarily for selling the product but also has some benefits to bringing other productive workers into the business, then are probably dealing with a legitimate business opportunity. The rewards rest on the distribution of a legitimate, clearly identified product that you can support.

If you look over a business opportunity and see that you would simply have to sign a lot of other people up to the business to make money, you are probably looking at a network marketing pyramid scam. If you could make potentially make money without really selling any product, then you are definitely dealing with a scam.

The best network marketing businesses will reward you for developing a team of hard working, smart individuals who sell a lot of product. Your reward should come from developing a real business that passes on a real product to consumers who seek high value. You should never be rewarded for getting others to hand over money for a business opportunity alone. The product must bring the biggest rewards.

The Philosophy of Recruiting

Network marketing pyramid scams and legitimate business opportunities all require recruiting to some extent. The difference is that a scam rewards you only for bringing others into the business. There is no solid product, and there really is no business other than recruiting to the business.

The legitimate network marketing business will not force you to recruit to earn a profit, but you will find that recruiting a good team helps you profit more. You can be successful on your own, but you will always be more successful if you have a group of people that you can trust working alongside you. Together you sell more than you would sell individually.

Dont be afraid of network marketing! Just make sure you find legitimate business opportunities and pass by the scams.

by: BrianGarvin

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