There are several names for Network Marketing; Multi-level Marketing, MLM, and of course the nasty “Pyramid Scheme”. Is it really an honest and ethical way to build wealth? If you’ve been working hard trying to make your online business profitable – and it’s not, or you are just starting to look for a way to work from home to make additional income, replace your existing income or build wealth, should you consider Network Marketing as a way to do this?
Let’s take a look at what Wikipedia has to say about Pyramid Schemes…
A pyramid scheme is an unsustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public. These types of schemes have existed for at least a century, some with variations to hide their true nature, and because of this, many people mistakenly believe that all multilevel marketing plans are also pyramid schemes – Wikipedia
So what exactly is Multi-level Marketing?
Multi-level marketing (MLM or Network Marketing) is a marketing strategy in which the sales force is compensated not only for sales of products they personally generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant’s “downline”, and can provide multiple levels of compensation.
Direct marketing is about business organizations seeking a relationship with their customers without going through an agent/consultant or retail outlet. Direct selling often, but not always, uses multi-level marketing (salesperson is paid for selling and for sales made by people he recruits or sponsors) rather than single-level marketing (salesperson is paid only for the sales he makes himself)
Direct selling and network marketing refer to the distribution system, while the term “multi-level marketing” describes the compensation plan. – Wikipedia
Every business is structured on on a pyramid. Does that mean every business is a pyramid scheme?
Maybe this will help you to be more open minded to the possibility of building a network marketing business. Is it for everyone? No. Are all multi-level marketing companies created equal? Definitely not. But if you have a burning desire to have your own business and be able to work from home then network marketing is certainly a viable option. There are many reputable companies to choose from.
I hope I’ve helped you to understand that Network Marketing is not a pyramid scheme, but an ethical highly lucrative business model that requires very little investment with big potential. And the best part is you can work from home!