Sometimes, when I’m talking with people about network marketing, they say, ‘Oh yeah! I know… it’s like a pyramid, isn’t it?’ …Wrong!
Here are 16 important differences…
Pyramid scheme
Network (or Multi-Level) Marketing
Product not market related
Market has been investigated and (mainly consumable) products are produced for the market
Encourages large outlay
Has a nominal joining fee, and stock is purchased only when required
Requires fixed monthly payments to assure turnover & profits
Payments only made when purchasing stock; for annual subs, or once-off starter kit
Not everyone has the same opportunity of profit sharing
Everyone has the same opportunity to develop business and generate profits
Earnings are based primarily on signing people (money for signatures)
Rewards are offered for retailing and networking activities, not signatures
Governed by a fixed matrix structure of recruits at each level
No restriction on the number of people at each level, or in the whole network
Promotional material sold at profit-making prices
Promotional material sold at nominal prices
Promises money for no work through pyramid-shaped sponsor lines
Fairest system of “he who does the work earns the money”
Provides inadequate training (if any at all)
Free & comprehensive training provided on products and all business aspects
On closer inspection, there’s no obvious product
Confidence from real products supported by money-back guarantee
Cannot out–earn the person above you
Can out-earn anyone above you
Is illegal in most countries
Legal business endorsed by SA Revenue Services
Does not adhere to a code of conduct, or submit to an Ombudsman
Affiliated to, and governed by, the Direct Selling Association (DSA)
Usually not in existence for longer than a year or two
Can have a long history. (GNLD has been in business successfully for over 51 years)
Does not operate simultaneously in more than one global market
Can span many consumer markets globally. (GNLD operates in 55 countries)
If you know any more differences, please share them in the comment box below. Thanks a lot.
