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Is MLM a pyramid scheme

Posted by Internet Guru
July 23, 2009

No, mlm, or multi level marketing is not a pyramid scheme. Pyramid schemes are illegal, MLM is not. Every year millions of people lose millions of dollars by getting caught up in pyramid schemes. A pyramid scheme is basically people paying other people money in the hopes of getting a return.

For example. A pyramid scheme would go something like this. You pay a fee of $1000 to get a position at the bottom of the pyramid. Half of it goes to the person above you and the other half goes to the person at the very top of the pyramid. Once all the slots are filled the person at the top will walk away with a hefty profit. Once he has been paid off, his name is removed and a new name is placed at the top of the pyramid. Then process starts all over. Very few people every make money in a pyramid scheme. Mainly just the ones at the very top.

Now lets talk about what MLM is. Multi-level marketing has quickly become a very popular way for companies to move product. Instead of selling in stores they sell their products via independent reps. As a rep you receive

a commission for each product you sell. Many MLM companies sell products that are paid on a monthly basis which could mean a nice residual income for you each and every month.

With MLM you also have the opportunity to build your own salesforce by recruiting others to sell the products as well. You will then start to earn a percentage of the sales from everyone in your salesforce or downline as it is commonly known as. With MLM you can build a long term successful business.

To learn about the hottest MLM home based business opportunity of 2009, please join us on our next free webinar by registering at http://www.AcnDominators.com.

Article Source:http://www.articlesbase.com/home-business-articles/is-mlm-a-pyramid-scheme-1060464.html

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