How can you tell the difference between a legit MLM opportunity and one of those network marketing scams or pyramid schemes everybody has warned you about?
What's the difference that makes all of the difference? Is there an easy way to comb the wheat from the chaff, chew the protein and spit out the bones, and shield you and your pocketbook from being taken for a ride? Let's dig a little deeper into the topic at hand and find.
Network Marketing Cons Outlined
MLM compensation plans, also known as "network" or "matrix" marketing, are a method of selling goods or services thru a network of independent contractor, distributors or direct sellers. Amway is one of the biggest, most well-known network marketing corporations. They have millions of active distributors worldwide and produce yearly sales in the billions.
Traditionally, Amway has fallen victim to the "network marketing cons" label a number of times. But in each case, including a 1979 FTC investigation in the US, a 1997 Belgian court action and a 2008 court judgement in Britain, each fake claim was discharged.
Briefly the FTC found Amway not guilty of being an illegal pyramid operation or merely another one of those network marketing cons because "distributors are not paid to recruit people and have got to sell products to get bonus checks, and the company was committed to buying back its distributors ' excess inventory.
Network Marketing Tricks Revealed
In a legit network marketing opportunity, commissions are earned only on sales of the organization's products or services. Commissions can be paid on both wholesale and retail sales. But no money might be earned from inducting other people as a distributor. Put simply, you can't make a cent from sign up fees. If a company pays out an indicator up fee, possibilities are it will fall into that feared network marketing stings class as it then becomes an illegal pyramid or ponzi scheme.
Protecting Yourself Against Network Marketing Tricks
Each year there are many hundreds of new network marketing corporations launched around the world. Like most tiny businesses, many of them won't survive a complete year in business. Others will drop by the end of year 2 and very few will still be around by the end of year 5.
The most effective way to safeguard yourself against falling prey to one of those network marketing stings is to get together with a proven company that has stood the test of time and legal examination. As an example, Nexera.com hosts a once a year list of the top 25 MLM corporations that fall into this factors :
* The company supply a multi-level compensatory plan. * The company must be in business for no less than 10 years. * The company must have a Google Page Rank of 1. * The company must have an Alexa Rank. * The company must show up in Google Trends.
Of course, a lot of this criteria has nothing at all to do with the legal status of any actual company or its marketing model, but if you team yourself up with a stable company which has been around more than ten years and has a well-known online presence, you greatly minimize the danger of falling in yet another one of those "network marketing scams".
What's the difference that makes all of the difference? Is there an easy way to comb the wheat from the chaff, chew the protein and spit out the bones, and shield you and your pocketbook from being taken for a ride? Let's dig a little deeper into the topic at hand and find.
Network Marketing Cons Outlined
MLM compensation plans, also known as "network" or "matrix" marketing, are a method of selling goods or services thru a network of independent contractor, distributors or direct sellers. Amway is one of the biggest, most well-known network marketing corporations. They have millions of active distributors worldwide and produce yearly sales in the billions.
Traditionally, Amway has fallen victim to the "network marketing cons" label a number of times. But in each case, including a 1979 FTC investigation in the US, a 1997 Belgian court action and a 2008 court judgement in Britain, each fake claim was discharged.
Briefly the FTC found Amway not guilty of being an illegal pyramid operation or merely another one of those network marketing cons because "distributors are not paid to recruit people and have got to sell products to get bonus checks, and the company was committed to buying back its distributors ' excess inventory.
Network Marketing Tricks Revealed
In a legit network marketing opportunity, commissions are earned only on sales of the organization's products or services. Commissions can be paid on both wholesale and retail sales. But no money might be earned from inducting other people as a distributor. Put simply, you can't make a cent from sign up fees. If a company pays out an indicator up fee, possibilities are it will fall into that feared network marketing stings class as it then becomes an illegal pyramid or ponzi scheme.
Protecting Yourself Against Network Marketing Tricks
Each year there are many hundreds of new network marketing corporations launched around the world. Like most tiny businesses, many of them won't survive a complete year in business. Others will drop by the end of year 2 and very few will still be around by the end of year 5.
The most effective way to safeguard yourself against falling prey to one of those network marketing stings is to get together with a proven company that has stood the test of time and legal examination. As an example, Nexera.com hosts a once a year list of the top 25 MLM corporations that fall into this factors :
* The company supply a multi-level compensatory plan. * The company must be in business for no less than 10 years. * The company must have a Google Page Rank of 1. * The company must have an Alexa Rank. * The company must show up in Google Trends.
Of course, a lot of this criteria has nothing at all to do with the legal status of any actual company or its marketing model, but if you team yourself up with a stable company which has been around more than ten years and has a well-known online presence, you greatly minimize the danger of falling in yet another one of those "network marketing scams".
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