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Is Network Marketing A Pyramid Scheme

Network Marketing which is referred as Multi-level marketing has been around for more than 50 years. More and more countries are using Multi-level marketing to make money. In this moment their are over 1,000 network marketing companies that offer good and services to consumers. According to DSA (direct sales association), the 2009 stats shows that the economy is getting better because of network marketing.

If you are running into someone who is telling you network marketing is a Pyramid Scheme, its not its a legal business where independent distributors are offering goods and services from big companies. There is no money that is earned from one person only. Its other people helping others to make money. As long as their are customers that use your product in your business of MLM, it is no pyramid scheme. If you bring someone into the business and you get paid for bring someone else into the business that is a pyramid scheme. Now if you bring someone in and they get a package with details on how to get started with products to try than it is not a pyramid scheme.

If you are still skeptical about an network marketing company, I want you to understand one thing, the MLM industry was legalized by the United States government back in 1979. Back in 1979, the federal government tried to stop MLM by insisting on suing Amway because it was a pyramid scheme and it did not work. There is a structure that network marketing companies have before joining them.

Network Marketing Structure

1)Compensation Plan
3)Products and services

Network marketing is about connecting with others by helping each other make money. Many people do not see it this way instead see it as a negative thing to become part.



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