Legitimate MLM Opportunities
The MLM opportunity is one of the most profitable ways to earn
cash on the net. It is a simple idea that creates a chain of
orders which in turn creates more commissions. This is a system
- a live system - which promotes sales of products directly to
the consumers through Net or off the Net. In an MLM you earn
your cash not only through commissions but also through
referrals' sales, i.e. through the sales of those people whom
you introduce as MLM business members.
Hence the MLM is actually a way to promote a product or products
or services to more and more people and your earnings depend
directly on the amount of sales generated through your sales and
the sales of the members introduced to the business by you.
Are you aware however that a pyramid scheme can be disguised as
an MLM business? Pyramid schemes are illegal and banned (and
also punishable under fraud in many countries) and function
almost on the same principles that an MLM functions. How can you
differentiate between a legitimate MLM opportunity and pyramid
scheme?
1. Pyramid scheme is a scheme where people earn by the number of
people they introduce to the business. This is the only
similarity between the MLM and pyramid scheme. Each person
entering the pyramid scheme needs to sponsor a number of
associates (say 5 people each). These five people will need to
get five each as well and so on - hence the name of pyramid -
the base expands supporting the top. The pyramid uses recruits
to get their money, while MLM uses recruits to sell products
2. Pyramid schemes usually require a big upfront fee for
becoming "distributor" or business start-up kit. MLM usually has
a very small nominal fee of membership
3. Pyramid schemes have no buy-back guarantees, while MLM has
4. Pyramid scheme centers on getting members in its fold; MLM
centers on getting products sold
5. Pyramid schemes, being illegal, are not registered with the
Better Business Bureau; most MLM companies are as it is
recognized as a good business opportunity
Check out carefully when you see a offer which offer "fast
money". All 'get-rich-quick' systems have an axe to grind
somewhere. Take care you do not duped, and/or you do not become
an instrument to dupe others.