April 2014
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Unlike pyramid schemes, multi-level marketing companies are legitimate businesses where members at any level can earn income through the sale of products and services, without needing to recruit new members. In a pyramid scheme, the primary way to make money is by recruiting others to join, whereas in MLM, recruitment is optional and members can earn through product sales alone. Some top investors and celebrities have endorsed multi-level marketing companies as legitimate direct selling businesses.
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April 2014
- 1. April 2014 | 61 412 595 195 The difference between A Pyramid and Multi-Level Marketing Other identifying characteristics: Vague descriptions about the company from which your questions can only be answered by signing up and paying the fee; No product or service being offered or a product that sells at a highly inflated price; A majority or all of the possible income to be made comes from the sign-up fee from new enrollees; and Repeated assurances that the company is completely legal. Volume 1 Session 2 As a mentor of MLM marketers I am often asked by new coachees how should they deal with the Its a pyramid statement from potential business owners. I have to admit on the surface, it's hard to tell the difference between a legitimate MLM and a pyramid scheme. That's because they're both built on the business model of "multiple levels" of distributors and recruits. Many people automatically associate a negative connotation with words like multi-level marketing and down line. Its assumed that those words denote a pyramid scheme and that the opportunity attached to those words is a scam. However, nothing could be further from the truth. If you know what to look for you will be able to detect a true pyramid scheme from a legitimate Multi Level opportunity. How tell if it is a Pyramid A pyramid scheme According to the United State Securities and Exchange Commission, the hallmark of pyramid schemes is the promise of higher than normal returns within a short period of time for doing nothing other than handing over your money and getting others to do the same. Organisations behind a pyramid scheme can go to great lengths to make the program look like a legitimate multi-level marketing program. But unfortunately that is where the similarity ends. They simply use money coming in from new recruits to pay off early stage investors. Contents Special Interest Articles Pyramids versus Multi Level Marketing About the writer - Ian is a committed sales people development specialist with over 40 years of practical hands on experience in coaching and developing sales people and Network marketers. He has tertiary qualifications in TQM, Occupational Work Health and Safety and Psychology, specialising in performance coaching.
- 2. Unlike a pyramid scheme, any member on any level can make money without ever having to sign-up a new member. Multi-Level Marketing - Multi-level marketing companies follow a similar concept to a pyramid scheme, which is a reason for most of the confusion, except for some significant differences. Members at any level of a multi-level marketing model can make income through the companys products and/or services without signing up any new members. Members of any level in a multi-level can earn more than the people who signed them up. Multi-level marketing companies are legal although structured almost exactly like a pyramid scheme a l l y , m u l t i - l e v e l m a r k e t i n g c o m p a n i Below are the celebrities, spokesmen and women, famous supporters and endorsers of the Direct Selling Network Marketing MLM Industry. They are very successful individuals who do not understand why some people have pyramid objections. Investors such as; Warren Buffett (Pampered Chef), Billionaires like Carl Icahn, George Soros and William Stiritz who invested hundreds of millions (Herbalife), and Vincent Tan (Epic, Ecosway). Former President of the United States Bill Clinton who has thanked the Direct Selling industry in a speech, Dr. Memhet Oz (USANA, Vemma), Donald Trump (ACN) and Madeleine Albright (Amway), who have been keynote speakers at conventions and many more. Just about any product or service can be purchased through direct selling somewhere in the world. Many people think of cosmetics, wellness products and home d辿cor as products that are often sold through direct sales, but add to that countless other product categories including kitchen products, jewelry, clothing, organic gardening supplies, spa products, scrapbooking supplies, rubber stamps and much, much more. President Clinton making remarks for the Direct Selling Association delivered on September 23, 1996 from the White House. Legitimate direct selling companies seek to make money with you as you build your business (and theirs) by selling real products and services. The Direct Selling Industry: est. $167 Billion in annual worldwide sales and est. 80+ million people are involved.