Beware of the “Pyramid Scheme”…

Beware of the “Pyramid Scheme” you might get rich...
 Network Marketing, Multi-Level Marketing and Direct sales are all the different names given to identify a true business structure.  Here’s the problem, we live in a world where dishonesty does exist.  Just as there are creatures in the animal world that disguise themselves as dangerous to ward off danger, there are masterminds in the human world that disguise themselves as legitimate business’s in order to make a financial gain at another’s expense. Guess what’s worse? Most people can’t tell the difference, and since most people are not aware of their own ignorance they pass up great opportunities in an attempt to shield themselves from being taken advantage of.  Would you be upset if you knew that the vase you dropped off at the local Thrift Store was worth thousands? Chances are you answered “Yes”? Do you really want ignorance to be the reason why you lost your potential lottery ticket? I didn’t think so.  So before you dismiss the legitimacy of an opportunity here is a quick question you can ask to gage it. Is the money that you make SOLEY based on enlisting another distributor, rather than the product you’re offering to the public? Ding Ding Ding you found a Pyramid! You can officially run. Don’t misunderstand what I am saying, I am not saying that recruiting instantly makes the business a Pyramid if that were the case every employer would be in hot water, I am just saying if you get a fatter check when recruiting 1 person and a skinny check for selling 1 company product that is a huge red flag.

 Read this statement made by the Federal Trade Commission retrieved from:

http://www.ftc.gov/speeches/other/dvimf16.shtm 

                        “Some people confuse pyramid and Ponzi schemes with legitimate multilevel marketing. Multilevel marketing programs are known as MLM's,(4) and unlike pyramid or Ponzi schemes, MLM's have a real product to sell. More importantly, MLM's actually sell their product to members of the general public, without requiring these consumers to pay anything extra or to join the MLM system. MLM's may pay commissions to a long string of distributors, but these commission are paid for real retail sales, not for new recruits.”
                                                  
                                                     PREPARED STATEMENT OF
                                    DEBRA A. VALENTINE, GENERAL COUNSEL FOR
                                          THE U.S. FEDERAL TRADE COMMISSION
                                                                         on
                                                     "PYRAMID SCHEMES"

Now that we have a mug shot and finger print of the poser, let’s talk about the real McCoy.  MLM’s (Multi-level Marketing), Network Marketing, and Direct Sales companies offer some of the highest compensation plans for your work effort and they don’t discriminate against anyone based on age, race, or socio-economic class.  You are given the opportunity to build your own business within a business that has a system already in place.  That is NOT a quality to take for granted although many do. Let me shed some light. Pick a business you’d like to start up…got it? Okay. How much are you going to pay your first employee? Who’s handling payroll? Are all your licenses in place? Do you need a place of business? How much is your lease? Who’s going to handle returns and refunds? Who’s going to handle the accounting? Are you going to do it all?  How much will it cost annually to run your business? Imagine all the different departments a large successful corporation has or all the departments you know of at a job you’ve had or have. It’s not impossible but it is a lot. In a Multi- level marketing company all those components are already in place. These sorts of business structures also offer the most authentic higher learning experiences surpassing the college experience  in the fields of business, economics,  marketing, and interpersonal skills to name a few. Your instructor is a living, breathing, walking example of applied knowledge instead of the salaried counterpart governed by the rules of an employee regurgitating book knowledge. Multi-level marketing companies have a culture of understanding and patience for the learning curve that comes with transitioning from an employee’s mindset to that of an owner. Starting your own business for the first time is like learning how to walk a tight rope 100 ft. in the air, starting with a multi-level marketing company is like walking on a wide beam 5ft up, with a safety net, someone holding your hand and the added bonus of higher returns earlier out.  Let me warn you though there are some very serious risks involved when you apply yourself within a multi-level marketing company and you need to be aware of them so that your aren’t too taken back when they occur.  People within your organization are going to genuinely care about your success; they are going to openly give you information that will help you become more successful, your network will grow by the hundreds rapidly, your new friends will probably make 6 figures or more, you’ll travel to some of the most exotic places, you will make money and you could even become rich so please proceed with caution.

Hear what Robert Kiyosaki renowned Author of the book “Rich Dad Poor Dad” has to say about
 Multi-level Marketing

http://youtu.be/Sz1SLOkIg0Q (Copy & Paste)