MLM (Multi Level Marketing) And Pyramid Scheme Scam
What is the difference between MLM and a pyramid scheme scam?
There are still many people who think that MLM is another word for pyramid scheme.
If you think that way, I have to tell you that it absolutely not true.
When you look at the structure, it is the same.
Let’s look at this example:
You’re the top person. If that makes you happy, I have something new for you: You’re ALWAYS at the top of your team… think about that!
But, you can be 2 levels from the person who started the business or you can be 2,000 levels deep…. In both cases you’re still the top of your team!
Back to the scheme.
When you ‘sponsor’ somebody (that means you find somebody who, just like yourself, thinks this is a great business and therefor also joins the business), that person goes under you in the scheme. When you sponsor another person, he/she goes next to the person you sponsored first. In the scheme here you have only 2 people who you sponsored: A en B. This can be many more people, depending how active you are.
A en B also spread the word and they find also each 2 persons: C. D, E and F
And they also find 2 persons….. and so on.
So far MLM and pyramid scheme scam are broadly the same.
The difference is in the products.
Actually, most of the time there is no product, only a flow of money. And that money is pumped to the top leaving some dollars at the levels. Therefor, the people in the top ‘earn’ the most money and it’s hard to find people who want to join. So, soon you feel really ripped of!
But, with a good MLM-business, you have a good product to sell and a good compensation-plan. With that combination you have the potential to earn more than the people above you, your sponsor or his/her sponsor or…..
But, does the structure remind you about something?
Maybe your job?
Or the government?
You see the schemes everywhere.
And be honest, can you earn more than your superior or his/her superior?
Next time when somebody shows you this type of scheme, just relax and listen to what he/she has to say and then decide to join or not. Because, it can be a big opportunity for you!
Have A Very Nice Day!