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posted on:
6/17/2012 10:24:40 AM EST
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MLM vs Pyramid
mlm, energy, free business, downline
 VISIT WEBSITE (learn more)
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Multilevel or “network” marketing plans are ways to sell goods or services through distributors. Typically, these plans promise that if you sign up as a distributor, you’ll get commissions not only from the sales you make, but also from the sales of the people you recruit to become distributors. These recruits sometimes are called your “downline. According to the Federal Trade Commission, the nation’s consumer protection agency, it takes research, some business sense and a healthy share of skepticism It’s best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products. Joining a pyramid is risky because the vast majority of participants lose money to pay for the rewards of a few people at the top. ”
Not all multilevel marketing plans are legitimate. Some are pyramid schemes. How can you tell the difference between a bona fide multilevel marketing plan and a pyramid scheme? What’s involved in doing research? Asking your sponsor and other distributors tough questions, and digging for details. Don’t consider it nosy or intrusive: you are on a mission to check out a potential opportunity that will require your money and your time.
For a great business opportunity tiny.cc/yl7jfw
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 | | Most MLMs online are actually membership sites..therefore goes without saying that they won't retail anything to those outside the membership. There is no way of differentiating between members who are distributors and those who are joining for the product. Does this make the business model a pyramid scheme? |
| | |  | | There are some illegal pyramids but not many. One big key is always whether or not there is "retail sale" that can actually be made. Thanks for sharing. Thought I'd bring this one back to life with a new comment. |
| | |  | | Great bog - and good to know about FTC rules. I wonder who does quality assurance on these companies, or do they just wait until the complaints start coming in? |
| | |  | | It's true that not all MLMs are legitimate, but an MLM is a wonderful vehicle for building a 6 or 7 figure income. It takes work though, and the majority of the population doesn't have the patience to do the work in order to see the results they desire. You have to find a company/product that you are passionate about like I have. Thanks for the blog Michael! |
| | |  | | Important advice, Michael. FTC compliance now states at least 30% of people in your "downline" need to be only customers who see value in your product / sevice without business proposition. Due diligence is necessary. |
| | |  | | interesting thanks for sharing this |
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