PYRAMID SCHEMES
" . . . just another one of those pyramid schemes,"
That's often the first thing out of their mouth when many
people are introduced to an mlm opportunity.
That is often their understanding based on what the
business looks like when it is presented to them on paper.
And it partially due to the fact that there HAVE been some
illegal network marketing scams in the past. Knowledge is
priceless and so is education.
It definitely pays to be knowledgeable about the difference
between an mlm company and a pyramid scheme. It will
help you know what to look for and what to avoid in an mlm
business or comp plan structure.
For example there would be 3 people at the first level, nine
people on the second level, 27 on the third level etc.
A Pyramid is a business structure that has levels. Many
offline businesses or companies have a pyramid structure
with executives, directors and employees...
A Pyramid SCHEME, however is where money would be
exchanged between people involved in the levels but no
products or services would be offered.
The key phrase is NO PRODUCTS OR SERVICES
WOULD BE OFFERED.Judging a business based on the type of model it uses
would somewhat be unfair.
If that were the case 95% of businesses in existence would
be considered a pyramid scheme!
The following will give you a better understanding of
business models and different pyramids to look out for.
Most business hierarchy's have a pyramid system where
the CEO is at the top making the most money.
Under the CEO would probably be the CFO and COO.
Under them would be the board of directors.
Then you would have your management.
Last but not least and working the hardest are the people
on the bottom of the pile.
Usually they are the ones you see at the cash registers
taking your payment or the waitresses or waiters on the
floor taking your order.
Or take a prison for example....In some prisons you have
one Warden, then the Major, then maybe 3 Deputy
Wardens underneath them. Possibly five or six captains
come after that. Underneath those five or six captains are
maybe ten Lieutenants. After that on the ground level
doing all the dirty work would be about 100 to 200
correction officers.
Most businesses whether it's profit or non-profit operate in
a pyramid structure but they prefer to call it something
OTHER than a pyramid.
people on the second level, 27 on the third level etc.
A Pyramid is a business structure that has levels. Many
offline businesses or companies have a pyramid structure
with executives, directors and employees...
A Pyramid SCHEME, however is where money would be
exchanged between people involved in the levels but no
products or services would be offered.
The key phrase is NO PRODUCTS OR SERVICES
WOULD BE OFFERED.Judging a business based on the type of model it uses
would somewhat be unfair.
If that were the case 95% of businesses in existence would
be considered a pyramid scheme!
The following will give you a better understanding of
business models and different pyramids to look out for.
Most business hierarchy's have a pyramid system where
the CEO is at the top making the most money.
Under the CEO would probably be the CFO and COO.
Under them would be the board of directors.
Then you would have your management.
Last but not least and working the hardest are the people
on the bottom of the pile.
Usually they are the ones you see at the cash registers
taking your payment or the waitresses or waiters on the
floor taking your order.
Or take a prison for example....In some prisons you have
one Warden, then the Major, then maybe 3 Deputy
Wardens underneath them. Possibly five or six captains
come after that. Underneath those five or six captains are
maybe ten Lieutenants. After that on the ground level
doing all the dirty work would be about 100 to 200
correction officers.
Most businesses whether it's profit or non-profit operate in
a pyramid structure but they prefer to call it something
OTHER than a pyramid.
So What IS a Pyramid Scheme?
A Pyramid Scam involves individuals that recruit others that
in turn recruit others. This system of recruiting has to have
no end to ensure its success.
The reason it’s called a pyramid is the structure it turns into.
For example, 5 people recruit 5 people (25 people) to give
them $50 ($250). Then those 25 recruit 5 more each to give
them $50 ($6250) and the money keeps being passed
upwards to be distributed to the recruiters. No products or
services are offered or sold.
The reason it eventually turns out to be an mlm fraud is
because for everyone to be successful, there has to be a
never ending sea of people to recruit for everyone to make
money.
The difference between a Pyramid Scheme and multi level
marketing (besides the fact that MOST mlm companies offer
a product or service), are that you are not required to recruit
in order to make money.
Yes, network marketing IS legal IF you can make money by
simply marketing the product or services without having to
recruit, should you choose to do so.
HOWEVER, it does NOT mean that the mlm company is a
pyramid scam JUST BECAUSE it encourages you to recruit!
Anyone in sports knows there would be no football teams, if
there was not a constant recruiting act going on!
A Pyramid Scam involves individuals that recruit others that
in turn recruit others. This system of recruiting has to have
no end to ensure its success.
The reason it’s called a pyramid is the structure it turns into.
For example, 5 people recruit 5 people (25 people) to give
them $50 ($250). Then those 25 recruit 5 more each to give
them $50 ($6250) and the money keeps being passed
upwards to be distributed to the recruiters. No products or
services are offered or sold.
The reason it eventually turns out to be an mlm fraud is
because for everyone to be successful, there has to be a
never ending sea of people to recruit for everyone to make
money.
The difference between a Pyramid Scheme and multi level
marketing (besides the fact that MOST mlm companies offer
a product or service), are that you are not required to recruit
in order to make money.
Yes, network marketing IS legal IF you can make money by
simply marketing the product or services without having to
recruit, should you choose to do so.
HOWEVER, it does NOT mean that the mlm company is a
pyramid scam JUST BECAUSE it encourages you to recruit!
Anyone in sports knows there would be no football teams, if
there was not a constant recruiting act going on!
SOOOO, as you can see, Penny Matrix is not a scam or a Scheme, it is simply Multi Level Marketing, and you should join up now and start making money this month!
Go there, join up, and become an active subscriber and I will help you start making a lot of money.
If you have any questions, then please give me a call at:
845-728-9659
Thanks and God Bless you, our troops, and America,
Steven Nicoli
No comments:
Post a Comment