Pyramid Schemes vs. MLM Programs

One reason why it is so hard to get people to believe in MLM programs is the belief that they are pyramid schemes. Well there is a difference between the two. Yes, you should be wary of pyramid schemes because in most cases they are indeed a scam.

The confusion comes from the fact that MLM Programs (or Network Marketing as it is commonly called today) and Pyramid Schemes look exactly a like in structure. That’s because some greedy crooks are out there using the MLM structure to trick people into buying a false product or service. The people who sign up in these pyramid schemes rarely see any  return on their investment.

Let me define what a pyramid scheme is so that you can see the differences between the two. A pyramid scheme is a business that someone tries to sell you something to sign up but what that product or service is real vague. They try to hype you up over all the money you can make instead of explaining what the product/service is and why people will need or want it.

If all the business pitch is HYPE  HYPE HYPE and RICHES RICHES RICHES, then you probably are looking at a pyramid scheme. Also these businesses are not usually a part of the BBB (Better Business Bureau). In other words its a scam.

Pyramid Schemes has created a very bad perception for real MLM businesses. Most people just assume they are the same and will not give you the time of day because they think it is automatically a scam because it has the same pyramid structure.

MLM (Multi-Level-Marketing) is when a real and legitimate online or  offline company decides to do its marketing through  MLM.They do this because when you use the traditional advertising methods, they pay a lot of money  to hit a wide range of audiences at one time but this is not very cost effective.

MLM is nothing more than word of mouth advertising. They only pay when you refer someone to their company. Kinda like cost per click on Google. This is method of advertisement is the new trend for online business.Many big wig businesses people like Donald Trump have stated that they believe that MLM is the next big thing in business.

MLM  companies have useful and desirable products/services and they are accredited through the BBB. They would rather pay their members than waste precious money through TV ads and other methods  of advertisements.

The good news is that you and I can make good money through these MLM programs but you first have to know how to generate targeted leads to your business. I posted another article in this blog about how you can generate free targeted traffic. Go check it out after you get done one with this one.

The spider web system is a free referral tool you can use to build your MLM business. It is a series of video tutorials that walk you step by step through 22 streams o f income generating MLM Programs out on the net. Once again its free so go sign up and use it to build your business. Just click the banner below.

I hope you have a better understanding of what the difference between a pyramid scheme and a real MLM business is. Remember if they can not tell you why and how their MLM business is useful and valuable to people then you probably want to stay away from it.

-Paul