The only way to make good money in ‘The Company is to continue to move from job to job or perhaps get promoted to
a position with more responsibility, while having less individual time. This is definitely not how I need to invest the rest of my
lifetime if I can avoid it. The desire to be self-supporting sparked a research project for myself, looking at different sites, signing up
for various money making programs as well as wasting a few hundred bucks in the process.
I knew that going into this journey, there are a lot of people creating money online but I will be swimming with Sharks of the Great White species.
Not only tend to be there a ton of scams today because of the world economy, and an amount of other factors, everyone appears to be bouncing on the bandwagon of
internet marketing, affiliate marketing as well as multi-level marketing or MLM. The issue for most (myself included) is the fact that MLM has a negative side,
pyramid schemes are similar in just how members are paid. Funny thing is simply about ALL companies look such as a Pyramid and the CEO is the guy making
more cash than everyone else. So, I wanted to find out what a ‘Pyramid Scheme’ is as well as how to avoid them.
The definition of a pyramid scheme according to Wiki, is: A pyramid scheme is a non-sustainable business model that involves promising participants
payment or perhaps services, basically for enrolling others into the scheme, very than supplying any real investment or sale of products or perhaps services
to the public.
Pyramid Schemes – History
According to theMLMtruth.com, “Ponzi as well as pyramid schemes do have similarities. Both are fraudulent arrangements for the receipt and redistribution of
money with early participants winning and those who enter later on losing. In each case it is essential to continue the game with new infusions of cash, for
if the play ends as well as there is an accounting, there must be a deficit and cries of pain. But where Ponzi guaranteed a definite return on one s
investment-albeit a huge one-the possibilities in a pyramid were almost unlimited as brand new members feed those who joined before.
Furthermore, the machinery of the pyramid is always explained as well as is, in fact, one of its alluring features, while Ponzi plans invariably refer
obscurely to exotic investments that are really irrelevant and usually nonexistent. In a couple cases the pyramid seems almost acceptable socially, as
in the cases of chain letters or distributorship plans, but there has not been any question about the vice of Ponzi schemes.”
Pyramid Schemes – Just how to distinguish Scams from a Profitable and legitimate Business Model?
The network advertising or perhaps multi-level marketing (abbreviated MLM) business has become associated with pyramid schemes as “A couple schemes may purport to
sell a product, however they frequently simply use the product to hide their pyramid structure.” and the fact whilst some people call MLMs in general
“pyramid selling others use the term to denote illegal pyramid schemes masquerading as a great MLM.
Pyramid Schemes – Due Diligence
The United States Federal Trade Commission (FTC) warns “Not all multilevel advertising plans are legitimate. A couple are pyramid schemes. It’s ideal not to
get involved in plans where the money you make is based primarily on the amount of distributors you recruit as well as your sales to them, instead of on your own
sales to people outside the plan who intend to use the products.” and states that research is your best tool and gives eight steps to follow:
Find – and study – the company s track record.
. Learn regarding the product
. Ask questions
. Understand any kind of restrictions
. Talk to other distributors
. Think about utilizing a friend or adviser as a neutral sounding board or for a gut check.
. Take the time.
. Think about whether this program suits your talents and goals
Some believe MLMs in general are nothing over legalized pyramid schemes.
Pyramid Schemes – Just how to Discover a Legitimate Online Business
As I mentioned at the beginning of this blog post “Pyramid Schemes”, I was looking online for a way to make money online and I had certain criteria in mind.
I wanted to discover a system or system that I could plug into that would definitely provide just regarding everything I required without re-creating the wheel.
In addition, I knew a great deal of scams existed so whenever I found Empower Network, I admit I was very skeptical and did a great deal of research.
Legit Pyramid type compensation business have existed legally for an extended time. Great examples of American Multi-Level Advertising (MLM) type companies:
. Mary Kay Cosmetics
. Pampered Chef
. Herbalife International
. Advocare International
I put a microscope on Empower Network and found it to be not just legitimate and not a great MLM in the sense that they never ask anyone to
recruit friends or perhaps family or perhaps have to conduct any kind of form of home presentations.
So what makes Empower Network not just legal however legitimate as well as profitable?
1. EN Sells real and useful marketing training products that can be applied to ANY business.
2. Any member can conceivably make more cash than the owners or any of the best current affiliates. In a pyramid scheme, this would be impossible.
3. EN discloses average earnings of members in real time.
4. EN maintains legal counsel with attorneys that specialize in Network Marketing to ensure that they not only follow the law however are great stewards
of the Network Marketing Industry.
5. Before you buy anything, Empower Network describes exactly what it is you may be purchasing (Blog platform & several training packages),
you have the option (definitely not required) to become an affiliate and be engaged in the chance to market and resell.
In conclusion, I have demonstrated the differences of Pyramid, Ponzi Schemes and Multilevel Marketing (MLM). Some pyramid and Ponzi schemes will
certainly not only rip you off but could place you on the wrong side of the law as a member or distributor. There are plenty of legal ways to make money in a Network
Advertising as well as Affiliate Marketing. It is very possible for ‘average’ folks to make many money, enjoying a legitimate business full or perhaps part time whilst
having a lifetime.
Alan Warmke works full time as an account executive in the computer industry. Alan resides in Round Rock, TX.
He enjoys spending his off hours blogging and making money online while helping others do the same.