Don’t Confuse MLM With Pyramid Schemes

Don’t Confuse MLM With Pyramid Schemes

As of Sunday, September 20, 2015 there are 138 million people searching how to earn money from home every 38 seconds. Although employment is rising and more companies are back to hiring it still stands to remain that there are people actively searching for honest ways to earn money.

Often times I have found there are a lot of negative and biased opinions out there for particular industries like Network Marketing or MLM.

For instance I direct a college preparatory program so I have worked with helping high school students go to the college of their choice for 15 years. There are several colleges that I like and there are several colleges I dislike. However, I never persuade students to go to the school that I like. It is their choice.

I was on LinkedIn reading some of my colleagues articles and one of my colleagues train youth to go in to Entrepreneurship. The article was fun, engaging until he compared Network Marketing or MLM to a Pyramid Scheme. I was disappointed because youth look to us to guide them. All be it, I know it is a true profession and nothing happens overnight but it is an honest way to earn money if a person so chooses to do so.

Don’t Confuse MLM with a Pyramid Scheme

MLM (Multi Level Marketing) is 100% totally legitimate. Eric Worre, Randy Gage and even Jim Rohn at one point in his career are highly successful and have earned a lot of money. They are living life on their own terms plus they are helping people do the same with their lives.

An example of an MLM program would be Paparazzi Accessories, Mary Kay, Total Life Changes or Herbalife. Representatives from these companies can sell direct which is also called direct sales so they earn money on the spot or through their company website. Also, you can sign up under representative/seller and that representative/seller will earn a percentage from everything you sell. Depending on the business model and compensation plan model you can also recruit people to your downline and then earn on their sales too.

The difference between MLM and a Pyramid Scheme

With MLM, there is a tangible product that is sold throughout all channels and it usually involves a good coaching/support system to help the representatives maximize their earnings.

A pyramid scheme has multiple levels as well. However, the biggest difference is that pyramid schemes do not have a tangible, legit/quality product. The people are just pushing “the idea” to make money. That’s illegal.

If you have the personality to sell products and services and have the patience and dedication to build and train a team (downline) by all means research an MLM company and begin to earn money from home. On the other hand stay clear of any business or company that is promoting the idea of making money without a products as that is a pyramid scheme for sure.