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Old 10-08-2007, 10:16 AM
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Default The difference between MLM Scams and Network Marketing Businesses

I think there seems to be some confusion between MLM / Pyramid Schemes and legit Network Marketing Businesses.

An MLM / Pyramid Scheme is a "business" where the money generated and paid to those involved is solely or primarily generated by bringing others into the "business". In this case I use the term "business" VERY loosely as it is not really a business. This example is designed to make money for the builders of the plan and the top level. Pyramids are illegal in the United States.

A company that offers a product or service for sale AND also allows additional compensation for recruiting and building a sales force is a completely different thing.

Here is the BIG difference.

As stated previously in a pyramid the only way or the primary way to make money is by recruiting other people.

A Network Marketing business offers the best of both worlds. Some people enjoy building teams and training people as well as the additional compensation offered for building teams can be considerable.

Some people do not care for building teams, training and dealing with making sure their teams are working as well. For those folks there is the option of simply marketing and generating revenue through product and service sales.

Avon, Mary Kay and even Amway are classic examples of companies where folks have the option of making a living off of product sales OR they can build teams and receive considrable more earning potential. Now you may not care for these companies but you cannot deny the fact that thousands of people have made a ton of money working with them.

In my home business I have this option and I do both for a couple reasons.

1. I get alot of satisfaction out of helping people work from home and I also have more long term earning potential. I spent many years as a trainer in the corporate world so it is in my nature to train and develop people.

2. I believe in the product my business offers AND even if my team is not having success I can still continue to grow my business and residual income.

The key is finding that company that offers a product or service that you are comfortable with and allows for ease in building and training a team if you choose that route as well.

Either way research, research, research any company. Make sure they have a solid history, they are financially stable and provide the training you WILL need to get your business going and growing.
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Old 10-08-2007, 11:23 AM
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Default Re: The difference between MLM Scams and Network Marketing Businesses

Joniki, you are such a great contributor to the forums. People can learn alot from you. I've learned alot from you
Thanks again for sharing such an important and informative post
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Old 10-08-2007, 10:56 PM
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Default Re: The difference between MLM Scams and Network Marketing Businesses

This is very important article for me.
It gives a clear line between the two.
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Old 10-09-2007, 06:54 AM
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Default Re: The difference between MLM Scams and Network Marketing Businesses

I've just seen so many times that as soon as you approach the "team building" aspect of a business people assume scam and pyramid scheme.

It's a shame because some folks are missing out on great opportunities due to the people out there promoting these bogus companies that really provide no value to a consumer.
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Old 10-09-2007, 03:20 PM
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Default Re: The difference between MLM Scams and Network Marketing Businesses

As I said in another post "Joniki is on a roll"! You are a great contributor to this forum. This post is another example of " I couldn't have said it better myself".

My business goes right along with what you are saying. We offer many opportunities within "the opportunity" itself.
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Old 10-09-2007, 10:05 PM
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Default Re: The difference between MLM Scams and Network Marketing Businesses

Joniki you seem to be very passionate about your business, as do you, Carl. I like that. I think it takes passion about what you are doing to make you successful, no matter what business you are in. Kudos to both of you
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Old 10-13-2007, 03:08 AM
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Default Re: The difference between MLM Scams and Network Marketing Businesses

Joniki,

I agree, they react badly to the idea of working as a team and I've had occasions where people actually talk down the idea of selling the product. Um, what do they think a business is...

One guy I talked to about the travel business was absolutely set on it being impossible to manage $5000 in commissions a year to get your own IATA number (its a travel agent distinction).

I didn't even bother trying to tell him that I'm going to fall just shy of getting it in my first year with my company, and I'm currently working on a group booking which will almost single handedly achieve that for me next year when the commission would be processed.

Its passion and the limiting beliefs you do or don't have that make a difference.
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Old 10-29-2007, 02:01 AM
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Default Re: The difference between MLM Scams and Network Marketing Businesses

I too found this very useful information. Our company is the same way ---there is no requirement to recruit but of course by recruiting you will increase your income ---it's just common sense. lia sophia also does something differently ---pays you company direct --no holding your % etc.... they pay you and furnish tax docs at the end of the year so all you really have to do is focus on tracking expenses.
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Old 11-25-2007, 02:21 PM
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Default Re: The difference between MLM Scams and Network Marketing Businesses

I will agree with the theme of this post- there is really nothing more empowering than to help others succeed. In fact, we have established that as our #1 priority- so much so that we help others get started by handing them initial sales (which with our comp plan is actually rewarded- which is a tremendous thing!). It is all about paying it forward!
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