Difference Between Pyramid Schemes And Network Marketing

So the first objection I usually get when introducing people to my business is it’s a Pyramid Scheme! Now let me stop you right there! First of all, they’re illegal so no it is far from it! Secondly, your day job is more like a Pyramid Scheme!

Now that brings me onto the first comparison. Your day job is most likely a Pyramid Scheme: Hard Working Employee (you), Supervisor, Middle Managers, Vice Presidents, Presidents, CEO. Now with Network Marketing that is not the case! You can potentially go on to earn more than your current upline and then their upline IF you put the hard work and time into it! This is where people get confused because it takes a lot of time and hard work to get to the top. Because of this a lot of people leave the business calling SCAM but in reality, they didn’t do what was needed to make the money they desired!

Onto the second comparison, a Pyramid Scheme you purely charge people to join and there is no actual product to sell! However on the other hand in Network Marketing there is an actual product whether that be beauty products, travel, clothing, the list goes on. Due to there being an actual product which you usually earn commission on whatever you sell (another opportunity to make money) this means it is not a Pyramid Scheme!

Another BIG difference between Pyramid Schemes and Netawork Marketing is how transparent the rep is about earnings! If it is a Network Marketing opportunity the Rep will be pretty transparent that you aren’t going to get rich overnight and hard work and dedication will be needed! On the other hand, a Pyramid Scheme Rep will promise big payouts with very little effort from you! A little tip: the Rep that is talking to you will often tell you a lot about the opportunity they have, someone that is aggressive, pushy, impatient will most likely have a Pyramid Scheme on offer and the ones that are patient, informative, have stats and figure to back up their points and no pressure to make a decision will have a legit Network Marketing opportunity!

Another difference is the ways you can earn! In Network Marketing there are usually many different ways to earn. One way is the actual product where you earn commissions and also from introducing new Reps to the opportunity! However, in Pyramid Schemes, there is so much pressure to earn just from getting people to join because there isn't an actual product or the one they do have is unable to make a decent amount of commission from.

An amazing difference is the training they have available! A little story time my first experience with what I thought was Network Marketing was horrible, with no training, no support and basically thrown into the deep end to figure it out myself *eye-roll*. Therefore make sure you ask what training is available, is there a test you have to take before joining? What is their training methods? A Network Marketing company will be proud of their extensive training opportunities and be willing to tell you everything you need to know to make an informed decision on if joining is right for you! On the other hand Pyramid Schemes often have little to no training! RED FLAG!

Make sure you do your research and you will be sure to end up in a Network Marketing Company that values their Reps and their Reps success! Also, one last tip if you google the company and there are a few bad stories don’t let that put you off, ask the Rep about it. More often than not it’s from someone who didn’t succeed due to not putting enough effort into succeeding!