It really makes sense to learn the difference. To help you understand what network marketing is, we should probably start with what it isn’t.
First, network marketing is not at all like any pyramid scheme. Pyramid shcemes are scams similar to chain letters where people just “invest” money based on the promise that other people will put in money that will magically filtrate back to them and somehow, they will get rich. A pyramid scheme is strictly a money game and has no basis in real business. Normally, there is 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. This business model has been around for many years and is being used by many businesses, large and small.
Real network marketing is based on providing people with real, legitimate products or services they actually need and want at a fair price.
Some people do actually make a lot of money through network marketing. But it important to recognize that their financial benefit is always the result of their own dedicated efforts (actual work) in building an organization that sells real products and services to real customers.
Pyramid schemes are illegal. They are based on taking advantage of people. For a person to actually make money in a pyramid scheme, someone else has to lose money. Let that sink in.
If the only way for you to win is for someone else to lose,
you are probably looking at a pyramid scheme.
In network marketing, when someone buys your product or service, they should be receiving REAL value. As for income, each person can multiply his or her efforts, skills and talents by helping others be successful.
Network marketing has proven itself as part of the new economy and a preferred way to do business here and around the world.
Network marketing is actually a serious business for serious people. Success in 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 building a team of other people interested in working together.
You can earn 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 simple concept is the cornerstone of many network marketing success stories.
By helping the people you personally sponsor to learn the system and follow your example, you can begin to duplicate yourself. As this process continues, you can 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.
There are many reasons to love network marketing. With network marketing, there are no major capital requirements, no or few 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.
Hopefully, you now have a better idea of what to look for when you get approached with the next “network marketing pyramid scheme” your friends are talking about.
Check out some of the ads on this site to learn more. Maybe you will find a good fit for you.
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