Learn to tell the difference between Network Marketing and Pyramid Schemes

Written by Jeff Yeomans Tuesday, 28 June 2011 10:57

A genuine network marketing business involves sharing and selling products to people each month. It is one of the only ways for anyone, regardless of education level, to obtain a 5 or 6 figure monthly income.

A genuine network marketing business involves sharing and selling products to people each month. It is one of the only ways for anyone, regardless of education level, to obtain a 5 or 6 figure monthly income.

The problem is that there are illegal marketing schemes out there, especially online. These schemes involve you being persuaded to give money, usually a large amount of money, to your sponsor for little or no product.

A sure sign that you are being offered an illegal marketing scheme is that you cannot use your credit card to make the purchase. You either have to use cash, check or money order made out to your sponsor rather than the company. When you ask to use a credit card and you cannot; beware.

One tip for telling if a real network marketing opportunity is real would be to determine how often you have to purchase product.

There is no MLM opportunity if there is no monthly product purchase requirement.

To begin any research on the network marketing industry you should start with a search engine like Google. Conduct your researching before you sign.

Many people suggest that you place the word scam in front of the product or business name before you conduct your search to see if anyone considers it a scam.

Before transferring any money to a MLM company, remember to take your time and understand the business. This will help you take full advantage of the network marketing opportunity.

Research the person who is trying to recruit you into the business by reading their blog and talking to them on the phone about the business.

Find some network marketing training and participate in that training before joining any business. Industry training can help you make the right choices and shorter your learning curve. Failure to get network marketing training can result in your losing money and wasting time.