Network Marketing vs. Pyramid Schemes
Personal note: Usually when people ask me about information about my
business offer, they assume that it is a pyramid scheme. I can assure you
that what I offer you is a unique business opportunity so that you can
achieve your financial dreams. In this lesson, I hope that I have taken
away all your doubt about this business offer. Now on to the lesson.
Because the doubling principle applies to both Network Marketing
compensation plans and pyramid schemes alike, it is important to know the
difference.
Illegal pyramid schemes promote income based only on numbers of people
recruited who must pay for, or buy something of questionable value in
order to recruit others to do the same. No one would normally buy the
product without the business opportunity. In other words, there is no
legitimate product or service available to be used, consumed or retailed
to the public. There is generally not even a wholesale/retail profit
margin available and sometimes not even a company!
A pyramid scheme is a scam masquerading as a legitimate MLM opportunity.
This is not a business, but simply a promotion scheme that appeals to
greed alone, and will quickly disappear, leaving the last people to join
with empty pockets.
In Network Marketing after a product or service has been sold, continued
attention must be devoted to serving the consumer's needs.
It requires time and effort to train and manage others to do this. This is
rationale for a Network Marketing compensation structure.
Bonuses are "earned" by "upline distributors" for training and managing,
as well as recruiting other distributors. Since there are no educational,
professional or business requirements for individuals to get started in
this industry, someone must generally provide them with guidance and
support in order for them to be successful. By compensating upline
distributors other than a distributor's immediate sponsor, the new
distributor has a much better chance of success because there are several
other people (their upline sponsors) who have an interest in their future.
WHAT TO LOOK FOR:
FINANCIAL INDEPENDENCE
One of the new facts of financial independence is that your future depends
on you, and what you do for yourself. Security and the opportunity to
determine your own destiny have become elusive quests in the business
world of today.
How you can make some important changes and not become another
statistic? Let's begin by evaluating the three time-tested ways people
earn money.
1. TRADE TIME AND TALENTS FOR PAY.
While this is available to all of us, it is a proven fact that you will
never really get ahead working for someone else. At least it's extremely
unlikely. Most employers pay their employees no more than 25% of what they
bill. Statistically speaking, as long as you work for someone else, you'll
never make more that 25% of your worth!
2. PUT YOUR MONEY TO WORK.
This would include interest, dividends on money you've set aside or
appreciation on investments you've made. But, there is a catch. Where does
this money come from?
3. PUTTING OTHERS TO WORK WITH YOU.
Traditionally, that has always meant owning a business of your own and
having employees. However, for most of us this is not only difficult, but
can be the most demanding and the riskiest venture we could pursue. In
addition to coming up with capital to begin the business, you must be
concerned about manufacturing, marketing, accounting and distribution, as
well as managing all these factors with few mistakes. Even with total
dedication, hard work, knowledge and ability, it is difficult to
successfully compete in today's market.
THE ALTERNATIVE
When people become independent distributors of a Network Marketing
company, this means they work independently and develop
their own organization, but in actuality, the Network Marketing company
becomes their partner. The company develops and packages the product, also
handles data processing and shipping, as well as creates promotional
material and training programs to support their distributors.
The uniqueness of Network Marketing is that you determine what results
will be - you create and control your own destiny.
IS NETWORK MARKETING FOR YOU?
If you are looking for a way to join the entrepreneurial revolution or
simply seeking a part-time income, Network Marketing is your answer.
People from all walks of life are finding success in this industry.
Corporate executives, office and factory workers, housewives, as well as
professionals from every field of endeavor, are participating in Network
Marketing.
Will you succeed? If you can simply share with others your enthusiasm
for a product or service, and are willing to help them do the same, then
you can succeed with a sound and well-managed Network Marketing company.
It's important to realize that you already possess the most vital
ingredient for success in Network Marketing. That is the network of people
you already know. Sociology studies tell us that the average person 21
years old is acquainted with over 800 people. These are the same people
you would normally share things with that you are excited about. These
people in turn will do the same thing with others they know. Networking is
the most natural business there is; which is why so many people,
regardless of their background, can be successful in this industry.
In summary, given the right components, Network Marketing is THE PERFECT
BUSINESS! Powerful and profitable enough to interest the elite and already
successful businessperson of today, yet simple enough for anyone to grasp
and use as their own personal tool for financial independence.
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