Oh My God It's A Pyramid Scheme!
In my 20 years in the network marketing industry I have heard this war cry from many a mis-informed person.
The truth is quite simple: Pyramid Schemes are ILLEGAL (since the mid 70's)
So, why do so many people think that these two business systems are the same?
Again, the truth is quite simple. Many industries have their share of cowboys (people that see a way to make a quick buck at someone else expense whilst providing a supposed service) just look at the building trade, the financial services industries and the car trade.
The system of network marketing has also suffered this fate over the years. There have been many cowboys that saw a way to abuse the business model to line their own pockets. They didn't care that in the process the whole industry would suffer as a result.
It is these cowboys that have helped perpetuate the myth of get rich quick schemes and only a few at the top make it etc etc. The REAL network marketing industry offers the most level playing field of ANY business model.
Don't believe me?
Fine. Can't say that I blame you, you don't have the knowledge I do!
Let me ask you these questions then:
1) In your traditional company who earns the most?
2) In your traditional company who gets the promotions?
3) In your traditional company who decides how much you earn?
4) In your traditional company who really benefits from your extra efforts and overtime?
If your answer is not YOU in all cases then maybe you should take a look at an industry that:
1) Offers you the opportunity to earn MORE than the perosn above you
2) Offers you the opportunity to help others become as successful or even more successful than you
3) Offers you the opportunity to decide your own hours
4) Offers you the opportunity to gain rewards directly related to your efforts
Of course, that industry is network marketing... you just haven't looked at it properly!
Now, don't get me wrong, I'm not saying that everyone should be in network marketing, far from it! Building a business in network marketing takes a certain type of character.You'll know if you are that character if the thought of running your own business excites you and not paralyses you!
All Opportunities are NOT equal!
The business model for network marketing is now proven, accepted and beyond dispute. What isn't so clear cut are the actual companies using the business model!
Here's my checklist:
1) Find a product range you would use
2) Make sure that the products are fairly priced
3) Ensure the products need little or no training on how great they are
4) Ensure that there is already a demand for the product range in other retailing methods (shops etc)
If you are happy with those then get going!
Notice I have not harped on about the company or the pay plan. Why? Well to be honest every company out there reckons they are the best and pay the most!
My advice would be focus on the products first - if this does not sell then the rest doesn't matter - then check out the company (do you like what they stand for, do they stand for anything?, what experience do the management have? do they owe any money? how long have they been going? - start-ups ARE OK too - What is the market growth potential) then look at the pay plan (as long as you are rewarded well for retailing - with proven routes for retailing provided - and you can build a team of like minded people) the plan will basically take care of itself if the first two are correct!
So, what is the 'job' of a network marketer?
1) Retail Product (including using it!)
2) Build and Maintain a Customer Base
3) Find and Sponsor others to do the same
4) Train, inpsire and help their team
It really is that simple.
So, what gives me the right to spout all this stuff?
For starters, 20 years of success and failures! I have ALWAYS used the 4 simple steps above with each company I have joined (and there have been a few!) The results have varied wildly!
Why?
Simple, it takes a while to figure out that PRODUCT comes first, COMPANY comes second and PAY PLAN comes third.
Most people approaching someone to join their network marketing business will go straight in for a 'Join this and retire in 5 years' type 'pitch' - BIG mistake and the main reason for the high failure rate in the industry - FALSE expectations.
You can earn a fortune BUT not quickly, not without HARD work and LOTS of effort COMBINED with PRODUCTS, COMPANY and PAY PLAN - do not let anyone tell you otherwise. You need to bear in mind that to most people an extra £200 a month is a fortune at the moment so why waste their time talking HUGE FORTUNES blah bla blah????
I hope that this short article is of use to you - if you agree, disagree or would like to chat just contact me!
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About the Author: Kevin Bruns
Member Since: 11/19/2008
Company: Wikaniko
Industry: MLM
Primary Web Site: http://www.youcangoeco.com


Great Points
You have to have a product that everyone is useing and will continue to use or it just won't work if you have to go and resall everybody you have in in your downline every month it is not going to work.
Re: Great Points
Although non-consumable products can work I agree that, for sustainability and longevity, products should be consumable and (ideally) not require a distributor to resell them every month - although there is nothing wrong in having a customer base that requires you to 'keep in touch'. I don't know if is just a terminology error but did you mean to say selling to your downline? Surely distributors only sell to customers and not downline?
Kevin.
Thanks Kevin for a great lesson.
How To Identify A Scam:
An Attorney General would ask these two questions:
1 - Would a logical thinking person pay this much money for the product or service if there was not a business opportunity involved?
2 - Does the income stop when the recruiting stops?
If the answer to the first question is "No" and/or the answer to the second question is "Yes",
then it is a scam.
I appreciate you,
Daniela Riess
Thanks!
Great points made in both the article and the comments--liked your Attorney General questions Daniela Riess :).
In addition to providing a good outline and structure for how a new network marketer may answer the whole "it's a pyramid scheme" question in the article itself, I appreciated the information about what thejob of the network marketer and the "why"..nicely put. I get so put off by people spouting at me how rich I'm going to get in 30 days. Starting wth the product first I definetly agree with--it is difficult to be passionate ( actually pretty impossible) about something if you don't believe in it. Network Marketing isn't for everyone and it is a legitimate business for people who are hard workers and look long term. Have a great day!