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Wednesday, 8 August 2012

Is network marketing a pyramid scheme?

Is network marketing a pyramid scheme? How do you spot a network marketing scam?

First of all, network marketing is not a pyramid scheme. It is a well respected and widely used business model across the world. In a Donald Trump network marketing article, Trump has even referred to liking the model of network marketing and multi level marketing.

I use network marketing over the internet as part of the very lucrative $1K A Day Internet Network Marketing System (very cool).

* Network Marketing Pyramid Scheme? - A pyramid scheme seems to involve people "investing" into something intangible and just giving someone this money and no value is being exchanged. There is a big chain of passing up this money where by the people at the bottom lose out and one or two people at the top cash in. This is an illegal pyramid scheme.

But network marketing is completely different. With network marketing you are selling products of value to customers. The business model is also such that you also benefit when members in your team make sales, but there is no pyramid structure where only 1 or 2 top people make all the money.

* Value Being Exchanged? - The internet network marketing scams and multi level marketing scams are where there is no product of value being exchanged. Or when a product is being purchased, the buyer is not someone who has any interest in using the product. An example is if someone buys a tennis racket (random example!) from a network marketer just for the business opportunity and the tennis racket will never be used and will just sit at the bottom of a dark closet.

* Team Work - I like network marketing over the internet because it is a way to team up with other marketers. With traditional internet marketing a marketer will sell an ebook "training" product that will supposedly teach the customer how to make money online. But whether the individual succeeds or fails (usually) with the product is not the concern of the product vendor. But with network marketing it is in your best interest to train and help your team members because the more sales they make the more sales you make. It is not something where someone buys a product from your affiliate link and they are on there way to fail with it. It is about helping one another so everyone benefits.

I hope this article has been of use. Network marketing is not a pyramid scheme or a scam, it is a legitimate business model and can be very lucrative..

1 comment:

  1. Interesting, i have never tried network marketing before!