Network Marketing vs. Pyramid Schemes

puzzle-piecesAt first glance, network marketing companies may seem to operate similar to that of pyramid schemes, but there are several differences between the two and many benefits to getting involved with network marketing.

Pyramid schemes are scams and are illegal in most countries because the only people who can make a lot of money are the people at the top and the majority, if not all the money brought in, is derived from sign-up fees; not the sales of products or services. Many pyramid schemes don’t even offer a product or service, or they create one of little value to seem more legitimate.

Network marketing companies on the other hand, do offer a valuable product or service and usually at a reasonable price. You don’t have to rely solely on the efforts of others because you can make sales yourself.

Both methods involve recruiting new agents, but with network marketing the commission you earn from the down line of people you bring in is based on the sales they make, not how many people they get to sign up. This means that you can be successful with just one or a few strong sales agents under you and this is what makes the business sustainable, unlike pyramid schemes that run dry once there is no one left to recruit.

With a good network marketing company you don’t have to worry about being stuck at the “bottom” because there is always room to grow and you can easily move ahead of the person who signed you up in terms of profits, bonuses and royalties.

The key to a successful business is proper marketing. The best network marketing companies are very aware of this and have created duplicable marketing systems that teach you click-by-click how to market your product to a target audience. They don’t rely on you hassling your friends and family members who just aren’t interested.

They also don’t promise that you’ll get rich overnight and are upfront about the fact that ambition and a strong work ethic will take you further in the business. Some even screen candidates for the right qualifications, which help to make a stronger company.

Network marketing is not a ‘get rich quick’ scheme, but with the right company and the right mindset the financial possibilities are really limitless.

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This entry was posted on Friday, May 15th, 2009 at 3:41 pm and is filed under Network Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.


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