subject: Is Network Marketing Really Just A Pyramid Scheme? Get The Facts Here: [print this page] First, what is the definition of network marketing?
Network marketing, or multilevel marketing ( MLM ) is a system for distributing goods and services through networks of thousands of independent representatives, or distributors. The representatives earn commissions by distributing products and services and also by recruiting and sponsoring other representatives who become a part of their downline sales force.
Now, there's a difference between a legitimate network marketing company and a "pyramid scheme." Even though these "pyramids" are structured like a legitimate network marketing business opportunity, they are not legal because their people are rewarded for their recruiting efforts and the marketing and selling of products and services are overlooked. Inevitably, pyramids will collapse and everyone involved will lose their money when members eventually stop recruiting.
You may hear family or friends say that the network marketing company you are involved with is a pyramid. And they may go on to tell you how the person at the top makes all the money while representatives run around doing all the work. I find that argument humorous because it could just as easily be used to explain any traditional corporation, and maybe even the company that the misinformed person works for! Just tell them to research the salaries of any successful CEO, and compare that to the laborers in the warehouses that work for them. The money flows to the top in a corporation. Why should it be any different in MLM?
However, that is where the similarities end. How many times have you seen a traditional employee earn more than his/her boss? Or how often can the newest employee quickly jump to the top of the payroll in a matter of months? In network marketing, your success depends on who you are inside. Your talents dictate what you will earn in MLM. If you are a winner, you will win with network marketing.
How many people do you know who work at a job, dying for an opportunity get ahead, but are held back because of things like lack of formal education, lack of seniority, etc. The talents of many are being wasted in corporate America. And these unhappy people are often the ones who will scoff at your business opportunity.
The truth is that people in MLM businesses have complete control of their ultimate outcome. People with jobs do not. So my question is this: Which pyramid would you rather join?
