MLM VS. PYRAMID SCHEME

Pyramid Scheme: A pyramid scheme can be defined as a fraudulent money-making scheme that is based on a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme without a legitimate product or service being delivered. Eventually the number of new recruits fails to sustain the payment structure and the scheme collapses with most people losing the money they paid in.

MLM: The concept behind MLM is a distribution model that allows a company to sell their products directly to the consumer. Choosing to use a word of mouth approach (networking) instead of advertising through traditional streams (e.g. media). Therefore instead of paying the media for advertising, MLM companies are structured to reward distributors through commission in return for selling their products and finding new customers.

MLM isn't a pyramid scheme. Pyramids are programs similar to chain letters where people just invest money based on the promise that other people will put in money that will filtrate back to them and somehow, they'll get rich. A pyramid is strictly a money game and has no basis in real commerce. Normally, there's no product involved at all, just money changing hands. Modern-day pyramids may have a product, but it's clearly there just to disguise the money game

There are superficial similarities between MLM and Pyramid Selling. But there are substantial and significant differences. Some are quite self-evident; others are subtle — sometimes amounting to no more than a slight perceptual shift.

The real difference is motive and attitude.

Even in a legal, ethical MLM organization there can be people whose motives and attitudes relate more to Pyramid Selling than to true MLM.

These people don't last, because the system's in-built ethical safeguards limit the damage they can do. But they can cause a lot of disenchantment that reflects on the organization as a whole.

True MLM is based on the Golden Rule of doing unto others as you'd have them do unto you. The real success stories are always of people who have risen to the top by unselfishly helping others to achieve their goals and dreams.

MLM is a brilliant concept that has helped thousands around the world achieves financial independence and happier, healthier lifestyles.

Any business that will make you any amount of money requires a certain amount of concentration and dedication. A decision that could change your life for the better. Don't just sit there -- do something! Cherie Ang is the owner and webmaster of http://www.sgprofitsite.com, the site for Simple Work From Home Opportunity and an experienced Internet Marketer. Claim your Free Internet Business Training course, available at =>
http://newsletter.sgprofitsite.com