Network Marketing – The Truth

Occasionally prospects ask me or people in my team the question, “is network marketing a pyramid scheme?” Its a fair question because there are so many schemes and scams out there and the recent high profile global exposure of Bernard Madoff’s ponzi scheme added to the scepticism.

Network Marketing Vs. Pyramid Schemes

Understanding what a Pyramid Scheme is, will help you identify one and differenciate it from a legitimate and legal network marketing MLM business.

A Pyramid Scheme, also referred as a money game is an illegal, non-sustainable business model. It involves the exchange of money primarily for enrolling other people into the scheme where there is no product or service being delivered. It is far removed from the network marketing business model.

Network Marketing History

In the past the unethical behaviour of some network marketing MLM companies has added to the misunderstanding and scepticism towards network marketing. This is why it is important that you do your due diligence before becoming involved in a MLM or network marketing business opportunity.

These are the criteria your network marketing MLM company must meet in my opinion:

1. There is a tangible product or service which will add real value to customers and distributors.
   
2. The company owners and management team have a good track record of business success.
3. The network marketing company is well funded.
4. 3 fundamentals for a successful MLM company are being fulfilled:
   i)   Payments systems are in place to collect money from customers
   ii)  Systems for product delivery and distribution are in place
   iii) System for paying commissions the distributors are in place

A MUST SEE VIDEO

If you have never watched Brilliant Compensation then you must. This was the video that helped me understand MLM and I have watched it over and over. If you are serious about making it in watch this video.

Click the picture on the left to view the video

“Brilliant Compensation“, is an excellent video featuring Professor Charles King & top network marketing MLM trainer Tim Sales which explains MLM and Pyramid Schemes.

Sit back, relax and enjoy the presentation.

Length: 30 minutes

I hope you have a much better understanding of network marketing now and I wish you Massive Success!

Shush Arya

PS Please leave your comments related to this article on network marketing.