Author Box
Articles Categories
All Categories
Articles Resources

Pyramid Scheme or Not?

June 08, 2012 | Comments: 0 | Views: 158

Someone has approached you with an awesome "business opportunity" and has invited you to attend an event at a private home, hotel or something of that nature. You are told that you can make a large extra income, or even eventually quit your day job. The words "pyramid scheme" enter your mind however, you feel you should at least do your friend a favor and go check it out. Or maybe a complete stranger approached you with the same pitch. You think to yourself that this seriously sounds too good to be true and enter the event with a preconceived notion and find out that yes, this is a network marketing company event. You mentally prepare yourself on making a clean, easy escape at the end before someone tries to have you sign your life away to join their pyramid scheme.

Wait! Before you write off this "business opportunity," maybe you should take a closer look, really ask yourself some questions and give yourself some serious food for thought.

Okay so yes. Maybe their compensation plan resembles the ol' pyramid shape. That doesn't necessarily mean you are about to enter an illegal pyramid scheme. True, there are and have been plenty of illegal schemes that have taken both people's money, and faith in network marketing companies. These issues have resulted in having people question whether or not network marketing companies are legit and whether or not they truly work. Many people also question if they will ever really see a cent for their hard work. Let's get back to the compensation plan for now though. So it resembles a pyramid. Do not let that alone be your determining factor, before gathering more information. Think about it like this. Let's say you work for a corporation. You have a boss. Your boss has a boss and it just continues up the chain until you get to the top. There's only one person up at the very top. That person's performance is based on those underneath him or her. Right? And it just continues to flow down. Hopefully you catch what I am saying here. All people who work for corporations and such really make money using a pyramid when you think about it. Take a look at any organizational chart and you will understand this process. Network marketing is no different when it comes to this.

On the flip side, there ARE illegal pyramid schemes, so how do you know if the company in question is one of them? First, look for an actual product being sold. Let me start by saying this first however, all network marketing companies will ask you to recruit other distributors underneath you in what is called your downline. This doesn't mean the company is an illegal pyramid scheme. An actual product being sold to customers is what you should research. According to Pyramid Scheme - Wikipedia, "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" ( http://en.wikipedia.org/wiki/Pyramid_scheme#Concept_and_basic_models ).

Another really important consideration is whether or not you can feel passionate about the product you are being asked to sell. If you don't feel passionate about the product, how can you ask others to buy it? You may end up sabotaging your own success.

Find out how long the company has been in business, along with their track record. This research won't take you very long, and will be well worth it; especially if you are interested in the opportunity.

Talk to other distributors and ask questions! You don't have to make your decision during the event. Any legitimate company will understand the fact that you may need to go home and process the information you've learned.

There are plenty of perfectly legitimate network marketing companies out there that sell a great product and compensate their distributors very well. In fact, you will find that many more businesses are jumping on the network marketing bandwagon. A little bit of research and asking the right questions can truly help you figure out whether or not this bandwagon is right for you.

Evin Wilkins is an Independent Wellness Consultant with Nikken and assisting families all over the world to build homes and lifestyles of wellness. Discover it. Live it. http://www.nikken.com/wilkins

Source: EzineArticles
Was this Helpful ?

 
0
 
0
 
Rate this Article
 vote(s)
Feedback
Print
Re-Publish

Article Tags:

Network Marketing

,

Pyramid Scheme

,

Illegal Pyramid Scheme

,

Pyramid Scheme Wikipedia

,

Mlm

If you hate the idea of working for someone else, and you believe that you are worth more than what you are paid, then joining a good MLM company is the way to go. With the correct mindset, hard work

By: Constantinos K Costa l Home Based Business > Network Marketing l June 15, 2012 lViews: 173

Over the years people who engage themselves in home based business have looked for a formula or easy answer to what it takes to achieve success in home based business. As any good home based business

By: M Bhiji l Home Based Business > Network Marketing l June 13, 2012 lViews: 166

The network marketing industry has been around for over 60 years and everyone is looking for a few key MLM Secrets. Many people will get involved with a great company, work at it for a few months and

By: Constantinos K Costa l Home Based Business > Network Marketing l June 12, 2012 lViews: 171

Create long lasting streams of passive income to fuel success and happiness in your life. We will break down step-by-step EXACTLY how this can be done with links for further your understanding of the

By: Amber Schmitz l Home Based Business > Network Marketing l June 12, 2012 lViews: 195

You wake up early to prepare for work. You wake up the kids, get them on the bus, dress yourself and rush out the door. At the office, you work eight hours or longer for a paycheck while you also

By: Suzanne M Nielsen l Home Based Business > Network Marketing l June 11, 2012 lViews: 245

If you're reading this USANA Review, chances are that you're probably searching for more information relating to this company. In this text I will reveal some specifics about the company that you

By: Ajuma Rebecca Ataguba l Home Based Business > Network Marketing l June 11, 2012 lViews: 199

If you hate the idea of working for someone else, and you believe that you are worth more than what you are paid, then joining a good MLM company is the way to go. With the correct mindset, hard work

By: Constantinos K Costal Home Based Business > Network Marketingl June 15, 2012 lViews: 173

Over the years people who engage themselves in home based business have looked for a formula or easy answer to what it takes to achieve success in home based business. As any good home based business

By: M Bhijil Home Based Business > Network Marketingl June 13, 2012 lViews: 166

Create long lasting streams of passive income to fuel success and happiness in your life. We will break down step-by-step EXACTLY how this can be done with links for further your understanding of the

By: Amber Schmitzl Home Based Business > Network Marketingl June 12, 2012 lViews: 195

The network marketing industry has been around for over 60 years and everyone is looking for a few key MLM Secrets. Many people will get involved with a great company, work at it for a few months and

By: Constantinos K Costal Home Based Business > Network Marketingl June 12, 2012 lViews: 171

If you're reading this USANA Review, chances are that you're probably searching for more information relating to this company. In this text I will reveal some specifics about the company that you

By: Ajuma Rebecca Atagubal Home Based Business > Network Marketingl June 11, 2012 lViews: 199

Yes a lot of people know about Vemma and are talking about the company and its great marketing and compensation plan. Today in this article, I want to examine if the company can make everyone who

By: Okereke Umal Home Based Business > Network Marketingl June 11, 2012 lViews: 199

Discuss this Article

comments powered by Disqus