The Pyramid Issue - ( Part I )

What defines a true pyramid scheme?

The U.S. Securities and Exchange Commission website defines a pyramid scheme as a business where: “participants attempt to make money solely by recruiting new participants into the program. The hallmark of these schemes is the promise of sky-high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same.” This business model is not only unsustainable, it is also illegal in many countries.

The very first thing to consider when evaluating any business opportunity is the company’s reputation. Do some front-end research to determine what the overall nature of the company is. Are there success stories being posted on web-sites that are not affiliated with the company itself? Are their online review sites that have something to say about the company? Ripoffs are pretty difficult to cover up, especially if the company is web-based.

Before I check into a company, any company that is, I personally like to conduct a background check with the "Better Business Bureau" (BBB) online. The BBB shows the complaints that have been filed about any company one wishes to search.

What to keep in mind.

The allure of network marketing opportunities are the success stories, (some of which are true) but realistically, most people will be fortunate if they earn an insignificant, or only part-time equivalent income. Stats have it that 95% of people who join a Network Marketing company quit within 45 days. Why? One reason; They are sold to the idea that this is a “get rich quick” type business when in reality, to be successful in this business or any other, takes learning, work, at least some failure, and endurance. Second; People don’t get educated about the business and quit too soon for lack of endurance or they ran out of money. (see “A Few Things You Need To Know Before Joining Any MLM or Network Marketing Opportunity” on this blog). To be continued ...

To Your Success!