Network Marketing & Pyramid Schemes

There's a huge difference between network marketing and pyramid schemes. Learn the truth here.

To make a long story short, here's the difference between a legitimate network marketing business and companies, and pyramid scams.

Legitimate network marketing business's invite people first to see the business plan, then upon the choice of the invited new person, become sponsored into the business by the person who invited him or her. At time of signup and throughout the life of membership, there can be no signup or monthly product purchase quota required to be and continue to be a member. Additionally, sponsorship means the following is always available. An education of books, audios, videos, weekly, monthly, quarterly training events and seminars, and constant support by the sponsor to help the newly sponsored person become profitable in their new business. If the network marketing business your investigating does not have all of these, walk away, forget it, and go find the one that does.

Robert Kiyosaki quote from his Business School book. "It's not the money, its not the products . . . the most valuable thing in a good networking marketing company is the education, training, support, and mentoring system." With this, people grow large permanent passive income network marketing business's.

The illegal pyramid scams are this. They recruit people and try to impose upon the new members to purchase a large amount of product at the time of signup, and or with a monthly quota. This is illegal in the USA, but many country governments around the world, including the Philippines, do not understand this difference, do not have laws against this, and thus they let operate in their country what is absolutely illegal in the United States after the US Supreme Court handed down the court ruling in 1979 after many complaints from people being ripped off by the illegal pyramid scams who were hiding behind the name of network marketing. Usually in these illegal pyramid scams there is no form of education, training, support, events or seminars. At the end of the day, the new unsuspecting person who just signed up, purchased P50,000 or 100,000 or more is left with products they don't know how to market and sell, and the person who recruited them has taken one third of their money, put it into their pocket, paid the company the other two thirds, and is gone. If anyone or any company is trying to do this to you, get their name and number, tell them thanks for the information, tell them, I'll be in touch, and report them to the Philippine governmental authorities. Its time we put an end to these illegal pyramids schemes and the stealing of Filipinos hard earned money in our country.

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Below is one more question and answer to what a legitimate networking marketing company is, and the illegal pyramid scams.

Q: Some friends continue to try to recruit me into network marketing deals that seem like some type of money game or pyramid. Other friends tell me they're illegal and I'll get into trouble. How do I know what's legal and legitimate?

A: To help you understand what network marketing is, I must first explain what it isn't. First, network marketing isn't a pyramid scheme. Pyramids are programs similar to chain letters where people just invest money based on the promise that other people will put in money that will filtrate back to them and somehow, they'll get rich. A pyramid is strictly a money game and has no basis in real commerce. Normally, there's no product involved at all, just money changing hands. Modern-day pyramids may have a product, but it's clearly there just to disguise the money game.

Network marketing is a legitimate business. First, it's based on providing people with real, legitimate products they need and want at a fair price. While some people do make a lot of money through network marketing, their financial benefit is always the result of their own dedicated efforts in building an organization that sells real products and services.

Pyramids are illegal and are based on taking advantage of people. For a person to actually make money in a pyramid scheme, someone else has to lose money. But in network marketing, each person can multiply his or her efforts, skills and talents by helping others be successful. Network marketing has proved itself as part of the new economy and a preferred way to do business here and around the world.

Network marketing isn't about taking advantage of your friends and relatives. Only a few years ago, network marketing meant retailing to, and sponsoring people from, your "warm list" of prospects. Although sharing the products or services and the opportunity with people you know is still the basic foundation of the business, today we see more people using sophisticated marketing techniques such as the Internet, conference calling and other long-distance sponsoring techniques to extend their network across the country.

Network marketing isn't a get-rich-quick scheme. Of course some people do make large amounts of money very quickly. Many would say those people are lucky. But success in networking isn't based on luck. (Unfortunately, money won't sprout wings and fly into your bank account no matter what someone has promised you.) Success in network marketing is based on following some very basic yet dynamic principles.

Now let's discuss what network marketing is. Network marketing is a serious business for serious people. It's a proven system where the design, creation and expense the corporate team has gone through becomes a road map for your own success. Just follow the simple, proven and duplicable system that the good companies provide.

The real key is this: Network marketing is all about leverage. You can leverage your time and increase the number of hours of work effort on which you can be paid by sponsoring other people and earning a small income on their efforts. J. Paul Getty, who created one of the world's greatest fortunes, said "I would rather make 1 percent on the efforts of 100 people than 100 percent on my own efforts." This very basic concept is the cornerstone of network marketing.

For example, most successful people building a network marketing business do so in an organized method. They work a few dedicated hours each week, with each hour of effort serving as a building block for their long-term business growth. Then they sponsor other people and teach those people how to sell the company product and sponsor others who duplicate the process.

By helping the people you personally sponsor to sponsor others, you duplicate yourself. As this process continues, you create compound growth that can lead to hundreds or even thousands of people coming into your business. You leverage your time by helping others be successful and earn an income from all their efforts.

With network marketing, there are no big capital requirements, no geographical limitations, no minimum quotas required and no special education or skills needed. Network marketing is a low-overhead, homebased business that can actually offer many of the tax advantages associated with owning your own business. Network marketing is a people-to-people business that can significantly expand your circle of friends. It's a business that enables you to travel and have fun as well as enjoy the lifestyle that extra income can provide.

The truth shall set you free. Amen.

Good day, and good business building for your financial freedom.