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A Brief Look At The Differences Between Pyramid Marketing And Multilevel Marketing

By Gail Ramberg

One of the biggest obstacles for the new network marketer is how to answer this questions. The first reaction of many prospects is “isn’t this a pyramid and aren’t those illegal?” It’s important to know the difference between a legitimate business and a scam. Here is a short description for you.

In MLM network marketing there is always some type of product being sold. The range of products is huge and there are over 1,000 different network marketing companies out there. The one thing that’s different is that the specific products are only available through the MLM company. You cannot find it retail, or anywhere else because it’s only available to members of the network. Therefore, if you want to buy it you will have to join under an established member of the network, and become a member yourself. This is how the people involved make their money – the recruiting member receives a commission from the products purchased by the new member.

Once a person is a member, he is now obligated to follow a few rules, which usually include buying a certain amount of the product per month. Your main job with the MLM is to introduce the products to new people who will hopefully like the products and want to sign up with you to buy them.

On the other hand, a pyramid scheme is just that – a scheme. And, one in which the only people who end up making money are the ones who started it up in the first place. An example of this type of “get rich quick” business is the “envelope” letter, which you may have received as an email, or in the regular mail, at some point in the past. In this “letter” someone who usually goes by a first name only, informs you confidentially, that he has already made thousands of dollars by following the directions of a simple protocol. And the best news is, you can too, if you just do what he did!

Next, you must start the ball rolling – and, in order to do this, you must send a disclosed amount of money to the person whose name and address is in the Number One position on a list that comes with the letter as an attachment. Once you do this, you can remove that person’s name from the Number One position, and move everyone else on the list up one notch. Your name then goes into the empty “last position” spot on the list. Then you get to make a couple hundred copies of the letter and list you received and send them to as many people as you can think of – who are expected to follow suit, of course. Once this is done, you are supposed to just kick back and wait for those thousands to come pouring in – which of course, they never do.

So, there you have one of the main differences between MLM network marketing and a pyramid. MLM network marketing is basically about selling legitimate products and earning monthly commissions from people under you in the organization. Pyramid schemes are basically about convincing people to give you money. One is a legitimate way to build your own business. The other is fundamentally a fraud.

Gail Ramberg has been creating TheNetworkMarketingBlog to show you: how to develop an MLM business, how to identify the legitimate info on the web from the bad stuff and why to avoid pyramid marketing. She’ll also teach you to separate a real business opportunity from a fake.

Article kindly provided by UberArticles.com

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Article Citation
MLA Style Citation:
Ramberg, Gail "A Brief Look At The Differences Between Pyramid Marketing And Multilevel Marketing." A Brief Look At The Differences Between Pyramid Marketing And Multilevel Marketing. 7 Aug. 2010. uberarticles.com. 30 Sep 2014 <http://uberarticles.com/business/mlm/a-brief-look-at-the-differences-between-pyramid-marketing-and-multilevel-marketing/>.

APA Style Citation:
Ramberg, G (2010, August 7). A Brief Look At The Differences Between Pyramid Marketing And Multilevel Marketing. Retrieved September 30, 2014, from http://uberarticles.com/business/mlm/a-brief-look-at-the-differences-between-pyramid-marketing-and-multilevel-marketing/

Chicago Style Citation:
Ramberg, Gail "A Brief Look At The Differences Between Pyramid Marketing And Multilevel Marketing" uberarticles.com. http://uberarticles.com/business/mlm/a-brief-look-at-the-differences-between-pyramid-marketing-and-multilevel-marketing/


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