Is MLM A Pyramid Scheme?

Is MLM A Pyramid Scheme?

This question was the first question that came up when I joined my MLM, I showed it to a few people and the first thing they asked is “Are you sure this isn’t a pyramid scheme?”

Well to be honest I never heard of a pyramid scheme back then, so I didn’t know what one was, and later found out that this problem is a huge plague expesially for MLM, and MLM has been used as a pyramid scheme!

Butt!! If you know what to look out for you can sniff them out in a heart beat. So don’t be taken for a fool….. Read on ;-)

What Is A Pyramid Scheme??

Pyramid Scheme, Ponzi schemes, investment frauds, chain letters, they’re all pretty much pyramid schemes.

They all have the same components just dressed up to look different, like putt’n perfum on a pig, it may smell better……. but it’s still a pig!

So lets break it down, and don’t try this because it is illeagal and just plain crude! I’m only devuldging this information so people know exactly what to look for, because there’s alot of claims sometimes unfair sometimes very fair, but if you don’t know what your looking for you won’t be able to tell the difference.

So what is a Pyramid scheme? Well first there a lot of different ones so I’m going to stay with the one that pertains to MLM.

O.K. I’m going to run the scheme for you here we go – Pyramyd scheme scene 1 action

The Pyramid MLM company-this company most likely sells a product that doesn’t have a value ouside of recruting other people.

This product could take the form of reports of some kind, or mailing lists as an example. In this kind of pyramid scheme, you would be required to recruit new members into the MLM in order to make a profit and keep the MLM alive.

Joining the MLM is the only reason anyone would buy the products sold by this pyramid scheme.

So you see if the MLM does’nt have a REAL product of some kind that you could make money just selling the product, then look out.

You should’nt have to recruit new people to make any money at all. You should have a tangeble product that you can sell and profit from.

Like wieght loss products, coins, juices, even time shares cruises and vacations! But you have to make sure the product is REAL, and profitable.

Also you can look at how long the company and product has been around, if they’ve been around for 5,10, 15 years or more chances are they’re not a pyramid scheme for it is illleagle and surely would have been shut down!

Now that does’nt mean join them blindly, still do your homework. Also I can telll you that you have to be carefull of some of the info you find out there, just use your common sense and your nose to sniff out the B.S.

Scam Warning!

No matter what you look up it’s a scam. Go ahead and try it out look up anything on google and I can 99% tell you somewhere it will be talking about a scam!

So I want to tell you why, well the word SCAM or SCHEME are just killer key words and they grab your attention for one.

Also no matter who or what you are your never ever going to please everone so just about everyone or everything has unhappy people barkin they’ve been scammed.

I can promise you at least for most MLM companys that this person probably thought they where going to get rich quick and when they did’nt ….. they cry scam!

So just look out for these people. MLM is NOT a get rich quick thing, and if that’s what your looking for than it’s not with MLM.

What A Real MLM Looks Like

So I told you what a scam MLM company looks like so lets see what a legit MLM looks like.

Legal MLM involves being recruited in order to sell a product or service that actually has some real, tangible value.

As a recruit, you can make a profit from the sales of the product or service, so you don’t necessarily have to recruit more salespeople below you.

So even though you may be encouraged to recruit other salespeople or distributers whose sales would give you more profit, you could stick to just selling the product directly to the consumer if you choose.

Do you see the difference between the two? A legal MLM usually has a killer product most of the time best in catagory.

They’ve been around for years, and have both salespeople and happy customers that have been around for years.

And you don’t have to build a team, if you want to just directly sale the product, you can, and you’ll be paid for it.

The Better Business Bureau Myth

The Better Business Bureau myth, heres the thing about the BBB, they don’t recomend or rate people or companys they are a paid membership.

So any company that is willing to pay can be listed on the BBB, and if you read about them lately they’ve gott’n in a little trouble themselves.

So what I’m saying is just because a company is or is’nt on the BBB does’nt mean they’re legitimate or not. It’s simple enough to look them up do your own home work on the company your interested in.

Well that’s it, I believe I’ve made it pretty clear what a Pyramyd MLM looks like and what a REAL MLM looks like.

So the next time someone says "I heard those things were a pyramid scheme" You'll have the answer!!

I hope you found Value

Thomas Ray

If you have any questions,You can find me on face book @www.facebook.com/thomasrayfp


P.S. If you’ve been a victim of a pyramid scheme leave a comment and tell us your story!