Network Marketing vs Pyramid Scheme

As Robert Kiyosaki, author of Rich Dad, Poor Dad says: Network Marketing is the business of the 21st Century! You may be aware that more and more companies are moving towards the 'word of mouth' business model as people are more likely to buy from those they like and trust!

Simple put, instead of spending thousands, even millions on advertising and marketing costs, Network Marketing companies simply redirect those costs to their customers, rewarding them for sharing with others.

Just like seeing a great movie and telling people about it, this is exactly the same, except the network marketing company rewards you as a thank you!

As well as earning money by distributing products to customers, Network Marketing companies also alow you to build a team 'network' who also go out and share the products with others. By helping and supporting your team, the possibilites are endless as that is where the residual income side of things comes in. Depending on the company, you may also get paid a % of the sales in your team as well so residual income is the money you earn when you are sleeping!

Network Marketing is a billion $ industry and is one of the fastest growing areas of the global economy. It has created more 6 and 7 figure income earners than any other industry!

Network Marketing vs Pyramid Scheme

People in Network Marketing are sometimes asked if they are involved in a pyramid scheme when they talk to others about what they do. Unfortuantely, there are many myths and misconceptions surrounding the network marketing industry and like in all industrys there are bad companys and good companys but I can assure you that pyramid schemes are illegal and have been for many decades!

A pyramid scheme is a business or company that doesn't sell any ligitimate product or service and relies soley on recruiting others.

Unfortunately, when people see the compensation model of network marketing drawn out, they see it looks like a pyramid shape so make that assumption. Ironically, the traditional business model is also a 'pyrmaid' shape and no one ever questions that one!

Checkist for Choosing a Network Marketing Company

1) Are they registered with the Direct Sales Association of your country?

2) Do they have products that are registered and approved with the TGA, FDA or other food and drug administration of your country? Are there many success stories amongst product users? Are they backed by scientific research?

3) Does the company have proven financial success and have they been operating for at least 7 years? Do the owners and management have proven success in the industry? What is the growth like?

4) Do they have a generous compensation plan with uncapped earning potential?

5) Is becoming a Distributor optional?

(In the company we have aligned with 84% just use the products only!)

6) Is it timing irrelevant when you first start with the company?

(In the company we have aligned with, the top income earner in Australia started 10 years AFTER the company first started operating. It certainly wasn't a 'ground floor' opportunity then!)

6) Most importantly, do they offer training and support to grow a successful business?

#networkmarketing #pyramidschemes