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Teetering on the edge of a pyramid scheme

Many people are looking at network marketing as an alternative in this uncertain economy.

There are many companies to choose from out there, but there are basically two differences. Some market the business and some market the products. The companies that market the business are teetering on the edge of being a pyramid scheme. A pyramid scheme is when the main focus is recruiting two people who will then get an income when their two people recruit two more people, etc. To start with these companies you have to invest a large portion of money. Some involve inflated priced product and services, some don’t. The majority of your income comes from the large sign up fees when you sign people up. Stay away from these companies. Not only is it flirting with danger from the FTC (federal trade commission), it is a hard sell.

The other type of network marketing company focuses on the product. You will usually hear all about the product and how it is helping people. You will be able to read testimonies and you might even buy product before anyone even explains how the business side works. You won’t have to pay exuberant sign up fees and the difference between retail and wholesale isn’t half price or more. These are the companies to look for. These are the companies that are easy to share and your first response isn’t going to be, “it sounds like a pyramid scheme”.

Every network marketing company is going to tell you they are the best, they have the best pay plan, and they have the best founders. It’s your job to actually take off your blinders and look further. Don’t be led astray. Look at what they are excited about. The new diamonds or new recruits? Or the results people are having using the product or service that’s being offered.


Micky Bixby


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