Pyramid Scheme-99.7% of network marketers DON’T make money.  If you want to avoid being one of them, READ ON…

A legal pyramid scheme?  Sounds oxymoronic, right?  Well, the key word is MORON…because that is what a lot of network marketing companies are banking on.  They bank on their distributors being morons.  And that’s really a shame because there are some really great network marketing companies that offer accessible opportunities for the average person to own his/her own business. If you research a company and it is part of the Direct Selling Association, you assume it is a legal company because IT IS.  Many network marketing companies meet minimum legal requirements to call themselves a direct selling company when in fact they are pyramid schemes.  Let’s take a look at the definition of a pyramid scheme.

Wikipedia.com defines a pyramid scheme as “a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, often without any product or service being delivered”.  So, by offering at least one product or service that any consumer would buy if there was no compensation plan attached, a company can call itself a direct selling company and hide under a veil of legitimacy.  So how do you lift the veil and uncover the scheme?

The answer is surprisingly simple.  STUDY THE COMPENSATION PLAN…BEFORE you join the company.  If the majority of the compensation you receive is coming from new recruiting instead of the sales of products and services, the company is a legal pyramid scheme.  And if you join a legal pyramid scheme, you will likely be part of the 99.7% of network marketers that DON’T make money.

Once you have selected a network marketing company that is right for you, you need a system that will generate quality leads and train your down line. You need a system that teaches people lead generation through the principles of attraction marketing and how to follow up with and enroll prospects.  A comprehensive lead system will get you on your way to great success with your network marketing company.

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