This question of whether MLM and network marketing is a ponzi scheme pyramid or a legitimate business model is an area that can be filled with heated debate. There are many people who are involved with MLM and other forms of network marketing and most of them will give you a very emotionally charged argument that this is a legitimate form of business.
There are businesses who have legitimate products and services and they use network marketing to distribute them. These are products and services that people buy because they find value in them. Some of these businesses have been around for a long time and have been very successful. Of network marketing companies these are the minority.
Most network marketing companies have products and services that most people would not buy if it didn’t have an opportunity attached to it. The cost of the product or services are often too high, of poor value or in some cases there is no product at all. Programs like these pop up all the time and they typically don’t last long. A year or two at the most.
So where do we draw the line between a legitimate business and a ponzi scheme pyramid? Some would say that it is a matter of whether the product is a good value that people would buy even without a business opportunity attached to it. Some will say as long as there is a product it is legitimate. Then there are many who say none of that matters and it they are all ponzi scheme pyramids.
It really just comes down to a matter of opinion. People have their own opinions on how to judge the industry and that’s probably not going to change. What is probably more important is the fact that most people who get involved with these programs never make much money with them and most lose money. There is a small percentage who make a lot of money but more than 95% of people fail when they get involved regardless of how stable the companies are, how they are structured or how good their products are.
So does this mean the industry is a scam? Not necessarily, some people do well with it. But these are professionals with specialized skills and many years of experience. What may be considered a scam is how these programs promote themselves as a way for average people to make easy money. In reality network marketing is very difficult for most people. There are much easier ways to make money but when an opportunity doesn’t depend on selling the opportunity in order to make money, you don’t hear about them much the way you do with network marketing.
Regardless of whether you believe MLM and other forms of network marketing is a ponzi scheme pyramid or a legitimate business model, the fact is most people don’t make much or any money with any of them.
Learn how I make money without network marketing MLM or any sales. With automated forex trading I make the kind of money on autopilot that most network marketers only dream about.
This question of whether MLM and network marketing is a ponzi scheme pyramid or a legitimate business model is an area that can be filled with heated debate. There are many people who are involved with MLM and other forms of network marketing and most of them will give you a very emotionally charged argument that this is a legitimate form of business.
By: M Wilson
Posts Tagged ‘Many People’
Is MLM and Network Marketing a Legitimate Business Or Just a Ponzi Scheme Pyramid?
December 5th, 2009Affiliate Marketing And Home Business
December 1st, 2009The solution could be starting a home business. Many people start of with affiliate marketing programs from major search engines. If yours is a sales website, your traffic could translate into increased sales. Retail sites such as Amazon and EBay have affiliate marketing programs. If you can generate traffic and increase sales then you make money. When it is posted on sites such as yahoo publisher or Google ad sense, there will be ads placed. Whenever a visitor clicks on an ad you make money. You can gradually commit more time as your home business grows.
Though affiliate marketing programs and selling services you will find that having your home business is easier than you think. By taking advanantage of the affiliate marketing programs that are currently available, you can make money and improve your own marketing skills. Right now, get marketing and get clicking.
Benefits of Network Marketing
November 12th, 2009Many people realize that network marketing is a powerful business tool to use today. There are so many opportunities and so many different types of industries that just being a sole person in the business world that will have you quickly lost. Before you know it you, might become over-whelmed and feel lost.
There are many benefits of network marketing. One of the major benefits is that you will not be running a company all by yourself. It is very difficult to run and operate a company while trying to also find customers and clients. If you go into network marketing, it is like you have mini-partners in your business. You are no longer alone.
Each time that you network with someone, it becomes a positive circle. For example, you meet and network with John Smith. John Smith has five really cool friends in your niche market. John lets his five friends know about your products and services. Then each of these friends lets another friend know. In essence, even though he does not work for you or have an invested interest in your company, John Smith has become a mini-partner in your business.
Network marketing enables you to find terrific deals and tons of information in your niche area. Let’s look further at the example with John Smith. More than likely, John Smith is going to have something that you can market as well. If nothing else, he will have lots of information that he has learned about your particular niche. Sharing your ideas and talking with one another will help you expand and mold your current business.
It is cost effective to network market. For one, it is virtually free advertising. Remember all of those friends that John Smith told about your company products and services? He was giving advertisement for your company without you spending a single dime!
Remember all of those networked friends that John talked to who are now talking to their friends? That is even more advertising without spending any money.
Network marketing allows you to reach more potential customers and clients for your niche market products and services. Just like when you met John and he talked to his friends who talked to their friends, it becomes a positive circle. Without any additional effort, you are already connecting with more potential customers and clients for your market.
Another aspect of network marketing is that it saves time. If you had to go and individually talk to each of John’s friends in order to tell them about your company, that would begin to take up a lot of time that you could be using for other business tasks.
Because you networked with John, he is spending the time while visiting with his friends to let them know about your company. As a natural progression, those friends are spending their time talking to additional people that they know. While all these network people are busy talking to one another and to new people, you are spending your valuable time completing other business tasks.
As you can see, network marketing is an incredibly powerful business tool for your company. It would be insane not to network with others if you are trying to run a business or promote a product by yourself.
By: Zach Thompson