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Network Marketing Business Opportunity: It Is A Pyramid Scheme?

Network Marketing Business Opportunity: It is a Pyramid Scheme?

While the label “pyramid scheme” has sometimes been attached to the network marketing business opportunity, it could not be further from the truth. A thorough analysis uncovers that Corporate America is much more inline with pyramid scheme tactics, while network marketing promotes equal opportunities for people on all levels of the company.

Some people have labeled the network marketing business opportunity as a pyramid scheme, but is this a correct assessment? In short, the answer is “NO.” You can gain a better understanding of what a pyramid scheme truly is and how network marketing differs through an analysis of the definitions and business models.

While network marketing involves the promotion of an actual product or service, pyramid schemes typically involve the exchange of money only for the purposes of enrolling recruits into the group. This is actually a fraudulent method of doing business, and pyramid schemes are illegal in several countries, including the U.K. and the U.S.

The way the pyramid scheme functions, the top dog in the pyramid and a few of the first members of the organization earn large amounts of money, which are actually the enrollment fees from the recruits. The larger the pyramid and the more people buying into the group, the larger the earnings of the top members, and the less (if any) income the new recruits are able to earn. The newer recruits earn so little, because it has been spread out among the members higher on the pyramid. Furthermore, because there is not a product or service, there are no retail commissions to earn. Some new recruits who do not recruit new members may even find themselves losing money in the scheme.

It is easy to see that a legitimate network marketing business opportunity is not a pyramid scheme in light of this analysis. Also known as multi-level marketing (MLM), the network marketing business model only works if there is a product or service to sell. It isn’t just about making money on enrollment fees, but rather earning money from personal retail commissions and recruits’ retail commissions.

Corporate America—The Real Pyramid Scheme?

While most network marketing business opportunities offer the same opportunity to all distributors and recruits, regardless of where they fall in the ranking, Corporate America provides a different kind of business model that isn’t as friendly to the “little guy.”

Most corporations have one top executive at a time, whereas network marketing allows unlimited top level earners who can earn the top commission rates simultaneously. Another example is how it is essential to the corporate business model that the lower level remains, or else the pyramid would fall apart. With network marketing, the top distributors train and encourage their recruits to improve and move up levels for the recruits’ benefit as well as their own.

Simply put, the network marketing business opportunity model provides for unlimited potential for each and every distributor, regardless of their current level. Each distributor has his or her own personal business and is free to focus on increasing sales or increasing recruits or both at the same time. True network marketing brings freedom from the pyramid model and freedom from having to work for “the man.”

Perhaps one of the most attractive aspects of the network marketing business opportunity is the camaraderie and team building evident in an MLM company. Because you can only benefit from your recruits’ successes, there is not the backstabbing and elbow poking often found on the journey to the top of the company in Corporate America. You don’t have to crush someone else to succeed. Instead, with network marketing there is a model put in place to give yourself and your recruits the best opportunity for clear-conscious success.

About the Author

Natalie Critchley encourages people to take control of their physical and financial well-being, and helps entrepreneurs every step of the way as they build the life of their dreams.

http://www.xtremebusinessopportunity.com/network-marketing-business-opportunity

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6 Steps Making $$$ on Facebook $14.52 Used – Discover how to make money for your business by being on Facebook. In 6 steps you will discover what you need to do to generate sales from the largest social network on the Internet.Facebook marketing is more than just being on Facebook. Sales professionals, business owners, marketers, and entrepreneurs alike will discover the formula for making Facebook a profitable sales channel.Small businesses, entrepreneurs, and business owners will have a clear plan for success with this book.

6 Steps Making $$$ on Facebook $14.95 Used – Discover how to make money for your business by being on Facebook. In 6 steps you will discover what you need to do to generate sales from the largest social network on the Internet.Facebook marketing is more than just being on Facebook. Sales professionals, business owners, marketers, and entrepreneurs alike will discover the formula for making Facebook a profitable sales channel.Small businesses, entrepreneurs, and business owners will have a clear plan for success with this book.

67 Mlm Network Marketing Lead Generation Tips: Mlm Insider Secrets That Will Show You How to Market, Advertise and Grow Your Network Marketing Business $28.03 New

67 Mlm Network Marketing Lead Generation Tips: Mlm Insider Secrets That Will Show You How to Market, Advertise and Grow Your Network Marketing Business $37.95 New

8 Fundamentals That Will Explode Your Network Marketing Business $23.15 New

8 Fundamentals That Will Explode Your Network Marketing Business $29.95 New

802.11 Demystified $43.95 UNDERSTAND AND PROFIT FROM 802.11The 802.11 family of standards is quickly emerging as the wireless LAN technology of choice, and knowing how these standards fit in the technical and business hierarchy has suddenly become “must know”—and very lucrative—information. In 802.11 Demystified, industry insider James LaRocca provides the technical information necessary to understand the standards and also examines them from a real world product trends and regulations viewpoint.Indispensable for decision makers such as network planners, IT executives, technology product managers, application designers, technical sales and marketing representatives, and anyone else who requires a firm grasp of 802.11 wireless LAN technology and the wireless industry, this guide:* Explains how to make informed decisions about the implementation of 802.11-based products and services* Provides an understanding of the strengths and weaknesses of 802.11 and all of its flavors (802.11a, 802.11b, 802.11g, etc.) * Details how 802.11 is deployed to reduce LAN access costs while providing more applications for the end user* Addresses 802.11′s underlying technology, including RF implementations, network topologies, mobility management, and data security* Discusses the relationship of 802.11 to Bluetooth, broadband, and 3G wireless networks* Covers bottom-line costs, competitors, prospects, compatibility, security, administration, and interoperabilityTAKE THE MYSTERY OUT OF WI-FI

A Quick Start Guide to Social Media Marketing $14.95 A Quick Start Guide to Social Media Marketing shows how using social networks as a key marketing tool can lead to improved customer satisfaction, better professional relationships and increased effectiveness. It covers: the benefits of social media marketing; how to apply advertising, PR and sales promotion; ethical behavior; how to add value for customers; how to use social networking sites to acquire, retain and satisfy customers; the implications for managing communications; the future of social network marketing. For anybody who wants to learn about high-impact, low-cost social media marketing that works, this Quick Start Guide provides an understanding of how theories and tools work in actual business scenarios.

Acn Inc. $54 Used – High Quality Content by WIKIPEDIA articles! ACN, Inc. is a Multi-level marketing company that provides telecommunications and other services and also provides independent representatives an opportunity to form a home-based business. Based in Concord, North Carolina, USA, ACN began operations in the U.S in 1993 as American Communications Network. It extended operations to Europe in 1999 and to Asia-Pacific in 2004, and now operates in 21 countries, on 3 continents. As a reflection of its i

Acn Inc. $31.48 Used – High Quality Content by WIKIPEDIA articles! ACN, Inc. is a Multi-level marketing company that provides telecommunications and other services and also provides independent representatives an opportunity to form a home-based business. Based in Concord, North Carolina, USA, ACN began operations in the U.S in 1993 as American Communications Network. It extended operations to Europe in 1999 and to Asia-Pacific in 2004, and now operates in 21 countries, on 3 continents. As a reflection of its i