subject: What Is The Key Difference Between Pyramid Marketing And Mlm Marketing [print this page] Do you know the difference between pyramid marketing and MLM network marketing? It can be a bit confusing for people new to the network marketing world. This is one of the biggest questions the new prospect has for the person they're talking to.
In MLM network marketing there is always some type of product being sold. The range of products is huge and there are over 1,000 different network marketing companies out there. The one thing that's different is that the specific products are only available through the MLM company. You cannot find it retail, or anywhere else because it's only available to members of the network. Therefore, if you want to buy it you will have to join under an established member of the network, and become a member yourself. This is how the people involved make their money - the recruiting member receives a commission from the products purchased by the new member.
Once you join, you now have to follow the rules, which usually include committing yourself to buying a certain amount of that product per month. Your business/job with the company is to promote the products to other people so they want sign up with you so they can purchase the products.
If you join a pyramid scheme, on the other hand, you will quickly come to realize why the term "scheme" is used in relation to it - especially once you realize that the only people making money from it are the ones who thought it up. One example of this type of scam is a letter commonly received by others - either by email or regular mail. The letter is sent by a person who usually only discloses that his name is "David" - or some other common name - and it's written in a buddy-buddy tone, in order to gain your confidence. The body of the letter informs you that you can make thousands per month the easy way - simply by following a well-known protocol, just like the "now rich" David has done.
The directions will tell you to send a certain amount of money - usually $10 or $20 - to the person whose name and address are in the number one position on the pyramid list that is attached to the letter you received. Once you have sent your money to this person, you are then free to erase his name from the number one position, and move the remaining five names under his, up one position. Then you can put YOUR name in the now vacant last place position on the list. Then, you simply make a few hundred copies of the letter - with the position list you received - and mail it off to as many people as you can think of. Then - you sit back and wait for the money to start rolling it - as promised by your new friend who was kind enough to send you the letter in the first place. However, it goes without saying that you will probably be waiting a long time for that money to show up.
So, there you have one of the main differences between MLM network marketing and a pyramid. MLM network marketing is basically about selling legitimate products and earning monthly commissions from people under you in the organization. Pyramid schemes are basically about convincing people to give you money. One is a legitimate way to build your own business. The other is fundamentally a fraud.
