The Two Things that Separate Illegal Pyramid Schemes to Legitimate MLM Opportunities

Author: Wayne Wu

Author: Wayne Wu

Thank Goodness for the internet. The internet has liberated a lot of struggling network marketers who didn't have a gnat's genital of a chance of success in their old companies. It has allowed these people to connect with great mentors and coaches, allowed them to plug into "turnkey" systems established by leading organisations. The internet has allowed thousands of network marketers to brand themselves for very little cost and reach out to the best prospects and become highly successful with alternative approaches to building a business. Unfortunately, the Internet has also created a wave of online scams that have made many victims of good, innocent, but gullible people who simply did not understand what they were involved in was illegal. Hence it's my goal with this article to help you understand what's legitimate and what's not. Differentiating between a Ponzi scheme (or a pyramid scheme) to a legitimate network marketing opportunity really isn't very hard. There are only two things you need to look out for... 1. Is there a product being sold to an end consumer? Cash flows through a network marketing organisation because there is the continual movement of product to consumers who benefit from the product and are happy to pay good money for it. Pyramid or Ponzi schemes are not sustainable because there is no movement of product to an end consumer. Cash flows through a pyramid scheme purely through the sign ups of new people into the scheme with their sign up fees. So once the recruiting stops, the income stops. The scams try to make you think they have a product, but they don't. At least not one that any logical human being would pay for. A product has to be of REAL value to the customer. If you can answer YES to this question, you can have a reasonable degree of confidence that what you're promoting is legitimate... "Would a logical human being buy what I'm selling if it DID NOT have a money making opportunity attached to it?" If the answer is NO, that's a fairly good indication that you should stop promoting whatever it is you're promoting. Memberships to "travel clubs" are NOT REAL PRODUCTS, thousands of dollars in "bidding credits" for a reverse auction site is NOT A REAL PRODUCT, hundreds of dollars to access to a customisable website is NOT A REAL PRODUCT. If there is a compensation plan attached to any of these things, it is a downright SLAM, BAM, thank you MA'AM S-C-A-M. 2. Who is behind the company? Who's running the company can give you a lot of evidence about the integrity of the company and where the company is headed. A good, legitimate company must have good people at the helm. There's an old chinese saying that has become very synonymous in the world of business - "The Fish Rots From the Head Down." If you cannot find the company owners and the people behind the operation anywhere on their corporate website, then don't go anywhere near it. It is 100% certain to be scam. See, if the law makers cannot find the company executives, they will go after the distributors and put them in jail - that's YOU, my poor friend. The clever scam artists will have no moral issues protecting themselves from the law by putting their independent reps on the line. Use Google to do a little research on each of the company executives. Put their names in quotes. If you find any history of them being behind scams, multiple bankruptcies, misdemeanours, please RUN. Run for it. Don't go anywhere near them, because they'll ruin your life. About the Author:

It's much, much easier to make money with legitimate business opportunities. Scams are not worth the risk.

Wayne teaches network marketers how to brand themselves and generate an endless flow of qualified prospects with powerful, low cost marketing. To learn how you can make money in less than one year in MLM, visit The Profitable Networker.

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