subject: Pyramids, Scams, And Other Network Marketing Myths [print this page] Network marketing, or multi-level marketing (MLM) is a relatively new phenomenon in the business world. It's not like a typical sales job where a person goes to work, and sells stuff out of the office or from door-to-door. Network marketing is actually where a person sells a company's product, while recruiting other people to sell the same product. The first person is paid from what they sell and also for the sales that the person they recruited makes. Without proper research, it's really easy to become misinformed about what exactly networking marketing is. There are several myths in circulation about it and about the network marketers who make it possible.
First of all, network marketing is not a get-rich-quick gig. It's actually ideal for someone who is patient and can wait a little while to start making the money they want to make. Sure, there is money to be made in network marketing but it won't get you rich quick. Just like with any other profession, it takes time and patience.
Another common myth is that network marketing is some type of scheme. People will often say that network marketing is a Pyramid Scheme, even though a Pyramid Scheme is illegal and network marketing is not. The true definition of a Pyramid Scheme is where an investor pays someone a lot of money for nothing, then the investor waits to reap the benefits of what he or she paid out.
However, the only people actually making money in a Pyramid Scheme are the tiny number of people at the top of the pyramid. All of the people at the bottom of the pyramid who thought they were investing their money into something worthwhile end up losing their money. People will also refer to network marketing as some sort of Ponzi Scheme. A Ponzi Scheme however, is when investors pay a collection agent who uses the investors' money to pay the schemers. Network marketing isn't like either of these things. Network marketing is completely legal.
The last network marketing myth is that with just a little bit of time each week or month, you can turn your network marketing into tons and tons of money. This is incredibly untrue. Network marketing takes a lot of time. You can't have your family members and friends buy your product over and over again. You have to find new clients, and that isn't easy.
Pyramids, Scams, And Other Network Marketing Myths
