The Difference between MLM and illegal Pyramid Selling


How can I tell a legal Network Marketing business from an illegal Pyramid?Network Marketing — also known as MLM ('multi-level marketing'), relationship marketing and referral marketing, is the 21st c...
At first glance, MLM is very similar to the pyramid schemes which have been made illegal in most of the West. In the pyramid, a representative pays his initial stake when he is recruited and is then shown how to recruit other representatives.
Every representative recruited brings a bonus and adds to the potential residual income. But, if no customers are required, sooner or later the whole structure will collapse, because there is nowhere for the income to come from.
In pyramid schemes, the people at the top are the only ones who can make money, because there is a limited pool of potential recruits, and no other source of income. It's pretty obvious that no company can survive for long without any customers.
So there you have it. When you look at the differences, it is quite clear why pyramid schemes were made illegal in the first place; they're just a scam.
In contrast, network marketing is an excellent way of making money by recommending products and recruiting others to do the same; it is the 21st century answer to the franchise. It's hardly surprising that 10% of new millionaires made their money in MLM...
and who knows how many settled for just half a million, or less? In my opinion, the best opportunity available in the UK and Europe for residual income is this. This opportunity is expanding all the way across Europe, from the UK, across Germany and Spain and on via the Czech Republic - well, watch this space! In the US, you might want to join the IAHBE here.
Finally, let me wish you as much success as you deserve in your new venture. Source: Free Articles from ArticlesFactory.com .

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