MLM Pyramid Scheme Or A Scam?

From the desk of Randy Disert, Attraction Marketing Coach

It is vitally important for you to be able to know when something is a scam or a legitimate MLM opportunity that looks like a pyramid scheme. If you get mixed up in the wrong thing you will most likely lose money in the deal and be completely turned off to and any real opportunity that might present itself at a later time. A real MLM opportunity is a viable and real way in which you can earn a lot of money.

A MLM pyramid scheme is actually not a scheme at all but rather just a structure in which you get compensated for sales of products that are made. It can be very confusing if you are not familiar with the industry because it takes the form of a pyramid structure. We are naturally taught to believe that anything that looks like a pyramid and says you can earn a lot of money is a scam.

A great way to look at the pyramid structure is to compare it to the corporate world which takes the form of a pyramid as well. You have the CEO at the top making all the money. You then have Vice Presidents below him who make slightly less. That flow continues through manager, associates, secretaries, janitors, and interns. Each one makes less money than the individual that outranks them. This is a pyramid as well.

Now to bring that back to the MLM industry, this type of business allows anyone to make more money than the person above them. It is all dependent on the actual work that you do. If you place a lot of time and energy into it, the business will reward you greatly. If you just join to get a position you still cannot make any money.

It is also important to look at the products being sold. There must be a real product or service in place in order for it to be a legal opportunity. If there is merely just money exchanging hands and no product to sell, then it is a scam and will not last. You may encounter some things that would appear to have a something to sell; however, if that product is not able to sell without having to present the ability to make money you might be looking at a scam.

So before you get involved in any type of deal you will need to carefully evaluate it to make sure it is a legitimate MLM company and not just some illegal pyramid scheme. The last thing you need to do is get involved in something illegal.

No matter what MLM company you decide to join you must learn how to properly market your opportunity. To get your free training on a strategy that allows you to target high quality leads then enter your name and email into the form below.

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