I have seen a lot of ads for these businesses. You can easily tell which ones they are with a little research. The most popular seems to be the one where new members pay a “membership” fee directly to their sponsor to access training material. Sounds good right? Only at first.
I started searching for info on MLMs vs Pyramid Schemes. These are just some of the differences I have found between the two.
In a MLM, the goal is to sell goods or services to consumers.
In a Pyramid Scheme, the goal is to recruit new members.
In a MLM, profits are generated by the sales of goods or services to consumers.
In a Pyramid Scheme, profits are generated by recruiting new members.
Start Up Cost…
In an MLM, there is little or no cost to get started.
In a Pyramid Scheme, members pay recurring “membership” fees to access “educational,” “advertising,” or “training” materials that can be found for free somewhere else.
After learning what I have, the question is are businesses like these “technically” legal or are they just flying under the radar of the Federal Trade Commission.
My recommendation is to look where the profits come from. Legit money is made from sales of a product to consumers. If you are involved in a company that does NOT offer its products WITHOUT enrolling, you may be in a pyramid scheme.
Like I said before, I am a newbee to the internet marketing industry. I used to have the mindset that ALL MLMs are bad until I started really learning the industry. A big thanks to you, Joachim! 😉
You can’t go anywhere on the web without seeing an ad for the latest and greatest home business. You can purchase every kind of marketing means from email addresses to ads on Facebook. Not to mention all the deals for post cards, business cards, flyers, and other promotional items. With so much to “buy” how is anyone making money? They aren’t!
Naturally, after all this time and effort, people assume that there must be something wrong with the business. Don’t get me wrong. There are a lot of so called “businesses” that have simply found a loophole in the laws so “technically” they are legal. There are good ones out there! You just have to learn HOW to work them to be successful.
I have been very fortunate to find a business that is unique and great, however, for the most part, the people that have chosen to join me are not strangers. I have made the time to talk to them. I have let them know who I am not just what my business is. I am connecting with people.
The real success lies in branding yourself. Make yourself stand out! How are you different? Embrace who you are! Let people know you. Build trust. Become the hunted NOT the hunter.
We are all normal people trying to live. We all have hopes, dreams, families, and interests. Be yourself. There are so many businesses great businesses but YOU are truly unique! A one of a kind!
My next post will be an indepth look at those “technically” legal businesses I mentioned. They seem to be really popular right now. Scary!