(many thanks to cobrasoft at sxc.hu for his free photo, and apologies for cropping it to fit)
Differences between pyramid schemes and network marketing…
When you talk with people about your new network marketing business, have you heard: “Oh! Yes! I know…it’s one of those pyramid things, isn’t it?”
Network marketing is most definitely not a pyramid.
Here are some very important differences…
Pyramid scheme Network (or Multi-Level) Marketing
Business not market related
Potential market has been thoroughly researched
There’s no obvious product
Confidence from real products supported by money-back guarantee
Encourages large outlay
Nominal joining fee and no stock purchase requirement
Requires monthly payments to assure turnover & profits
Once off joining fee, then annual subscription renewal
Not everyone has the same opportunity for profit sharing
Each distributor has an equal opportunity to prosper
Earnings are based primarily on signing people
Rewards are offered for retailing and networking activities
Governed by a fixed matrix structure at each level
No restriction on the number of people at each level
Promotional material sold at profit-making prices
Promotional material sold at nominal prices
Promises money for no work through pyramid-shaped sponsor lines
No work…no money
Provides inadequate training (if any at all)
Free training provided on products and business
Cannot out–earn the person above you
Can out-earn anyone above you
Illegal in most countries
Genuine, legal business
Does not adhere to a code of conduct
Affiliated to, and governed by, the Direct Selling Association
Usually not in existence for longer than a year or two
GNLD has been successful for well over 50 years
Doesn’t operate simultaneously in more than one global market
GNLD operates in 53+ countries
There are probably a lot more differences I haven’t thought of. If you know any more, please let us know. Thanks.