Pyramid Scheme vs Multi Level Marketing
By jaypul
@jaypul (185)
United States
12 responses
@constaanta (571)
• Germany
16 Sep 06
What you characterize as "pyramid scheme" we call over here in Germany "snowball system". The difference to an honest MLM system is, that in pyramid systems most of your income depends from bringing people into the system. Honest MLM systems are marketing strategies based on sales of products.
Best way to find out, if it is an honest MLM:
1) Check their marketing plan, how long it is existing. If more than 1 year you can start to build up trust in their seriosity, but would be better 5 years and even exist some 25 years.
2) To bring YOU into the system should not be a benefit for the person who is doing it. This first payment should only cover the cost of contacting you. So your first payment should not be more than 100 to 200 Dollar and what you get for this, shouldn't be just nice words but also products for your own use.
3) Any honest MLM system is selling products, which the clients want to consume and buy again: Nutritional products, cleaning products, monthly needed services like fone/internet/insurance. It can't be a good MLM, if you have to buy and later sell a product, which you will use only once and for all or if it is so expensive, that you will use it many years until you need it again.
4) The manufacturer of the products should be a finacially strong one. Would be good if the producer is listed at New York Stock Exchange or similar places. Because payment of your income is not really safe, if it has to come from just one person like was discribed by the Iclandic contributor above.
@SwayingThunder (444)
• United States
7 Jan 07
Wow you did an amazing job of giving advice! I have been scammed so many times before till I learned the very things you just said. I'm happily working with a company now that has been around for 5 years and for some odd reason just now been discovered. It's doing wonderfully and so am I. But you have to be careful and as you say check on them. And don't be afraid to ask alot of questions. If they are legit they will respond and quickly. If you send an e-mail and you don't hear back from them...stay away!!
@magikrose (5429)
• United States
24 Oct 06
In my opnion they are the same because no matter how you look at it you need people under you in order to make money from the program.
@feelinggood (217)
• Canada
2 Feb 07
If they can't make it work, it's their own fault. They didn't work it, and persist with their own business.
Action = Results.
I am living proof that it can work.
@EconKnowMix (858)
• Philippines
17 Dec 06
both are made to scam a lot of people. the only people could benefit on this scheme are the ones who initated this scam.
if you are making money out of it then you are just lucky but to the majority it is always a losing business.
@TDonald (1421)
• United States
17 Oct 06
In a pyramid scheme you buy your position in the structure and then try to get others to do the same.
In MLM you distribute products and services directly to the consumer. You are also allowed to find other people who want a business. You are rewarded with a percentage of that persons sales. No sales - no money.
@alfie7 (7)
• Kenya
24 Oct 06
There is a very distinct difference between a pyramid and mlm. pyramids do not have a product it simply involves the movement of money from one person to another whereas network marketing is money exchanged for a product or services. The best network marketing company i have come across was officially launched last month. Check it out. Take a free tour on this link.
http://alfie.ProWealthResults.com
1 person likes this
@feelinggood (217)
• Canada
2 Feb 07
This is exactly the right definition.
...however, I can't bring your site up.
@pandino75 (377)
• Italy
16 Sep 06
i think that finally these are the same thing, i don't like these system because isn't a real job and if i want to buy somethings i go to shop or internet, i hate the door-to-door vendor.
@jal1948 (1359)
• India
13 Feb 07
what difference whether it is pyramid od multy level for both you approach your near and dear ones who trust you and give them the cork and bull story given to you and thereby break relation ships and trust,to the extent that people start avoiding you, youll see it happening, is it worth the price to pay,
@abigel_dark (132)
• Romania
13 Feb 07
I work right noe for a company wich is based on mlm. I am stisfied with the reslts, I managed to earn 600 usd dollars in the first month of activity. The business is at the begining in our country in 3 months I managed to earn now 5000 usd dollars/month! Mlm marketing is based on many years of marketing research I don't know how could somebody lose money in this business if its made properly! I had no bad experiences by diong this business! I say don't be afraid, but keep away from scams and be good informed about the whole thing.
@parassiniprashob (479)
• India
26 Dec 06
you can refer the internet for directselling companies which are legally operating in india before you start a network marketing believe that its for ever if you are inthe right place , otherwise it willbe only a get rich scheme, so choose the best , i advise you to start the amway
@parassiniprashob (479)
• India
2 Feb 07
the difference is , if you gets money for joining a person , is illegal pyramid scheme, in network marketing, the principle is each people doing little little, the leagal network marketing companies are, amway, modicare, tupperware, oriflame, avon, foreever living etc. please be ware of illegal pyramid scheme , if you will work with any of these legal companies your success will be for ever
