In today's time, people have great enthusiasm and drive to be successful. Especially that there have been so many opportunities available around that promise them to change their lives in the best way possible. And with the help of the new technology, being successful has been made easier and in a more convenient way of achieving it. However, there are businesses that operate under a pyramid scheme and call themselves as multi-level marketing companies. The sad thing is that, in most cases, it is very hard to distinguish the difference between these two; between an illegal and a legitimate opportunity. Joining an MLM can surely help people start up a successful business, but taking time to be sure that it is indeed the right business and not a pyramid scheme is very important.
Basics
When it is a pyramid scheme, you make money by collecting a fee from the members below you in the hierarchy of the company, without selling an actual product. This then requires an amount of consumers for every downline or tier below you. For instance, an individual at the top collects from two people beneath him, these two people also need to find two people for each of them, and so on. When it reaches the 13th level, it becomes impossible to earn money as more people would be required to participate. But in multi-level marketing, the profit comes from selling a particular item to the people outside the company or by finding other distributors.
Basics
When it is a pyramid scheme, you make money by collecting a fee from the members below you in the hierarchy of the company, without selling an actual product. This then requires an amount of consumers for every downline or tier below you. For instance, an individual at the top collects from two people beneath him, these two people also need to find two people for each of them, and so on. When it reaches the 13th level, it becomes impossible to earn money as more people would be required to participate. But in multi-level marketing, the profit comes from selling a particular item to the people outside the company or by finding other distributors.
Start-up Cost
A legitimate MLM requires very little expenses to enter the business. On the other hand, a pyramid scheme usually requires hundreds of dollars in fees for training and other materials- things which are surely an additional expense. A company that employs an MLM approach will not pressure you to join and would quickly and willingly offer you the information about the company's business model. In a pyramid scheme, a recruiter often evades questions and even make use of pressure tactics, like creating a scenario of urgency just to take advantage of the offer now.
The Scheme
A pyramid scheme usually claims that you can make huge profits with just a minimal or even no work. But a legitimate multi-level company will not offer fast riches, but instead it would detail the amount of work that you have to engage in for you to become successful. In addition, it is always easy to find information about a legitimate MLM, but information about a pyramid scheme is scant or difficult to find. Moreover, you can choose to leave an MLM company by resigning and the company often purchases excess merchandise at 90% of its cost. But this is never the case in pyramid schemes as they will not buy back the merchandise, instead, they try to pressure you to stay and purchase an additional training.
Having some businesses who pretend to be legitimate, it is important that we get to know what the business is all about prior to entering into it. If not, we would end up getting fooled and wasting our money, effort, and time. There are so many honest MLM companies out there, look for them and be one of them. You deserve to be successful with the help of the right people.
A pyramid scheme usually claims that you can make huge profits with just a minimal or even no work. But a legitimate multi-level company will not offer fast riches, but instead it would detail the amount of work that you have to engage in for you to become successful. In addition, it is always easy to find information about a legitimate MLM, but information about a pyramid scheme is scant or difficult to find. Moreover, you can choose to leave an MLM company by resigning and the company often purchases excess merchandise at 90% of its cost. But this is never the case in pyramid schemes as they will not buy back the merchandise, instead, they try to pressure you to stay and purchase an additional training.
Having some businesses who pretend to be legitimate, it is important that we get to know what the business is all about prior to entering into it. If not, we would end up getting fooled and wasting our money, effort, and time. There are so many honest MLM companies out there, look for them and be one of them. You deserve to be successful with the help of the right people.
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