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Is it a pyramid? What is a pyramid?
Network marketing busineses sometimes have a bad reputation and are sometimes confused with "pyramid schemes". Here is some information to help you tell the
difference between a viable network marketing business and a pyramid.
Why call it a pyramid in the first place? This metaphor is aptly used for this business model because the people at the top of the pyramid make the most money,
whereas those at the bottom lose the most money.
A quick way to determine whether a Network Marketing "Opportunity" is a legitimate venture, or one that is considered to be a Pyramid is by looking at how the
business makes its money. Ask yourself three questions:
1. Is there a legitimate product involve?
2. Do you get commissions based on product distribution or on recruitment?
3. What initial investment is expected of you and what has been the return on investment and in what period of time for current or former business owners.
If the main source of income is from recruiting new business owners and selling them the potential for income without a legitimate product or service being
delivered, chances are it is a Pyramid. These are best characterized as "get rich quick" business opportunities.
If, however, the business does have a product/service focus, and does maintain a healthy bottom line with respect to sales volume, chances are that this is, in
fact, a Network Marketing company.
Ready to find out more? Read on for our key questions to ask before investing in a network marketing business.
Looking for advertisement space? Contact us to advertise here.
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www.secondincome.ca Advertise Here Today
Contact Second Income to advertise here.
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