What is the difference between network marketing and a pyramid scheme




















A pyramid scheme is a type of illegal business while network marketing is nothing more than a method to generate sales. If it is true that pyramid schemes generally use network marketing as a method to generate money, network marketing isn't illegal or immoral on its own. A general definition could be " a non-sustainable business model that lures its victims with promising rewards ".

A person creates a virtual product or service. He then promises other people within his network a lot of money if they get into the scheme. To become a member, those people will need to pay a fee. This fee can come as a membership, entrance access, product price, etc. Once those people are part of the scheme, it is their turn to encourage others to be part of the scheme , using their personal network.

Each of the new comers will pay an entrance fee. Part of this money will go to the referrer and the rest will go up the chain to the referrer's referrer etc.

After enrolling an average of 6 people, a member covers his initial investment and starts to actually make benefits. We call this system a "pyramid scheme" because the shape of its members' base reminds the one of a pyramid: each level is larger than the previous one.

The first reason is that Pyramid Schemes do not create any value : the money earned by the members of the scheme comes from the members of lower levels. There is no creation of value and therefore the system only transfers the money from one individual to another. The second - and main - reason is that a Pyramid Scheme is a non-sustainable business.

In other words, the scheme is meant to fail. Once a member, this person will need to enroll at least 6 other people to recover the initial investment and continue enrolling others to generate a benefit. This is because you have to pay a joining fee for being a member.

The good thing is that you will not be required to pay a monthly joining fee for the Atomy Resource. This is good because this will save you from having a hard time in paying for your monthly membership fees or joining fee. Second, you have to understand the bonus system. In this bonus system, there will be a certain period where you are going to have an extra amount of money.

This amount of money can be used by you in signing up or buying products. For example, you are going to have an extra bonus every month for one year. Third, you have to consider the review system. In the review system, the people from Atomy Resource will help you choose the right products that you need. This is something great, because the process will help you learn a lot of things. For example, if you want to use the colon cleansing system, then you have to read the reviews for this system first.

This review system will help you determine the right product for you. Fourth, you have to know about the terms and conditions. When it comes to the bonus system, you have to make sure that you are going to read all the terms and conditions.

These conditions will tell you what you need to do in order to get the bonus money. There are some conditions that will not allow you to have this bonus. You have to make sure that you are going to read these conditions so that you will not be disqualified. Fifth, you have to remember about the review system. The review system is the only way that you can determine which products will fit your needs.

This is very important because there are a lot of products in the market today. As you might recognized by now, I am in such a Network Marketing company that meets the above requirements. Passive income exists here for more than 25 years. Contact me , and I will help you achieve it too.

This blog is the re-edited and re-published version of the one on my former website that does not work any more. Rumours and words of mouth many times lack and distort facts Stories transmitted by oral tradition have tremendous power. Time to flip this veil! How can one decide if the business opportunity she would like to join is not an illegal Ponzi scam?

What are the characteristics of pyramid scams? The main difference is written in brief below, because people often confuse MLM business with the rogue pyramid scheme: Pyramids can not work in the long run , because after X number of steps it simply runs out of potential people who can be involved. If there are no more contributors, the system crashes, and masses of the lower level who pay, are the losers! There is no product or service in a pyramid scheme.

There are only contributors and their money shall be distributed to the users only. In pyramid scheme the one who is positioned at the top, or first enter, gets the most money.



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