•Tom "Big Al" Schreiter  •Ken Seto  •Rod Cook - Contributing Editors

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Is NetWork Marketing A Pyramid Scheme?
Critics Claim - It’s Not Real!
By Rod Cook, the MLM WatchDog

From the MLM WatchDog – This article covers the painfully common questions we get about MLM--NetWork Marketing. An entire spectrum of truthful answers are here for novices and critics.

Q:  Friends and family try to get Me  to join MLM  deals  that look like a pyramid. Other people say they are mostly scams and all I will get is grief and trouble!  How do I tell if they are legal?  I see critics on the Internet saying,  “all NetWork Marketing is a pyramid.”

A:  True MLM or NetWork Marketing (I like the capital W for work in NetWork) is not a sick pyramid scheme!  A pure pyramid scheme is based on money changing hands.  No products/services are being sold to end customers.  All a pyramid does is allow a system for money changing hands.  It gets hard to discern when worthless products or services are included in the pyramid scheme.  How do you tell?  Could you go out and sell the products/services to people who don’t belong to the scheme?  Would they be willing to buy them?  Great quick test!

Illegal pyramids are based on stealing money from the last people in.  Someone has to lose money for you to make money.  If recruiting new people stops, the entire system collapses.  In a true MLM the last person in can still make money by selling products and services.  When the MLM WatchDog looks at any NetWork Marketing company, I ask myself first!  If no new people were brought into the company starting tomorrow, would the company still be in business next year?

Just about all critics of NetWork Marketing on the Internet are in three categories:

(1)   They have never been in a legal NetWork Marketing company and do not have the least idea of how one actually works.

(2) They tried NetWork Marketing had a failure and are bitter about the industry.

(3) They are general “nutcases” that would rag on about any business (I wish they could have owned a franchise).

NetWork Marketing is a massive legally recognized growing industry.  Real estate, mortgage brokers, Internet services and many other “conventional” companies are turning to NetWork Marketing.  Why? NetWork Marketing pay plans produce higher income and happier representatives.  The best companies in Network Marketing provide people with real legitimate products/services at a fair price -- people buy because they want them.  It provides a powerful growth channel for both companies and their representatives.

Get Rich Quick?  Not NetWork Marketing!  It isn't a get-rich-quick scheme.  Call it a “Get Rich Slow” scheme!  Some novices made have large amounts of money quickly.  I call those rare people “Lucky!”.

Some people make a whole lot of money through NetWork Marketing.  Notice the capitalized W in Network!   It takes time and education to learn to build large organizations that sell lots of products or services to customers.  It takes learning about people and the intimate details of what is being sold.  The fortunate thing is that most MLM companies or distributor groups have training systems to help “newbies” to “learn the ropes.”   The biggest shortcoming of the industry is that people who join don’t want to put in the time and effort to learn how to properly promote their products and companies.  They want instant gratification (read that money) and not a long term financial growth plan!

“Getting Rich Slow” is the best attitude to take.  If you work at NetWork Marketing slowly you will have a steady stream of income in a few years.  To some people having house payments covered and a new car paid for are enough.  Putting money away for retirement is something Americans are very bad about.  NetWork Marketing can provide the money for your future.  Take it easy and study hard!  Work a set number of “dedicated” hours each week.  Don’t quit!  You may have to try several companies.  Don’t quit!  The only way to fail is to quit or not work!

The beauty of  NetWork Marketing is each person can multiply their efforts, and what they learn by helping others to become successful.  NetWork Marketing is becoming a preferred way to do business around the world.  In fact many companies grow rapidly internationally because of contacts made by individual distributors rather than at the corporate level.  International expansion is expected in the MLM business, because it is so commonplace.  It’s great for those of us that like to travel!

Network marketing is about leverage.  By working and building a group of 50 you get the results of  200 hours of “people effort” versus you alone.   You can invest in leveraging  your time by increasing the of your direct effort by sponsoring other people. You then earn a small income on their efforts.  If you increase the 50 people to 100 you double your income!  Plus you have other people called your “Upline” helping you build your group!  J. Paul Getty, with one of  the world's greatest fortunes, said "I would rather make 1 percent on the efforts of 100 people than 100 percent on my own efforts." This basic idea is at the core  of  NetWork Marketing.

You don’t have to hound family and friends.  With the Internet providing leads and training companies you can do well on your own.  You still need to make a “warm market” list!  A few years ago I went to a national meeting of a company.  Two cousins were shocked when they saw each other!  The first one had been in for two years before the other one joined.  The second one was getting a national award for organization growth!  The first one looked ill throughout the rest of the meeting!

NetWork Marketing is a good business for serious people.  Good companies have produced proven and duplicable systems for you to grow to success with.  Most are simple, you don’t have to be a rocket scientist to make money.  Like Franchising, a simple duplicable system is a major power of NetWork Marketing companies.  Many provide training that would cost “boodles” if you were taking it in a commercial school or even public courses.  A good product/service that excites you means that you never have to sell them.  The word sharing by excitement has a true meaning.

The real beauty is the ease to be in business!  There aren’t big cash requirements to start like in a franchise, no geographical limitations like a franchise, usually only minimum quotas are required.  The great beauty of the industry is no special education or skills needed!  The little guy (or gal) with a high school education (or less) can go to the top.   Network marketing offers many tax advantages that a part time job doesn’t.  Working from your home provides a low-overhead business.  You learn to meet people and make new friends that are part of your business. If you like to travel the NetWork Marketing business is for you.  You will have your people all over the U.S., Canada, Mexico and the world.

I have helped handicapped and elderly succeed by teaching them and their folks to sponsor others and then duplicate themselves. As this continued it created compound growth leading to hundreds or even thousands of people coming into our business. You too can leverage your time by helping others be successful and earn a serious “leveraged income.”

I can tell you from the heart, that NetWork Marketing is the last hope for the little guy!  I have owned sixteen businesses, three different franchise operations, and participated in a 40 other ventures.  Most required money in the six-figure range to get started.  Most demanded killer amounts of time.  The return on investment in terms of time and money is best in NetWork Marketing.  It is the last stop for the aging, disabled and poverty stricken.  That is why I fight to protect the MLM Industry and the people in it by tracking down pyramid schemes, scams, and exposing bad guys.

If you want to use this article you are welcome as long as you include a live link to Americas MLM Consultants at http://www.MLMconsultant.com/index.htm

Good MLM link! The MLM WatchDog News, Stopping Pyramid Schemes and Scams is http://www.MLMwatchdog.com/index.html