How to Tell a Legit Opportunity From a Pyramid Scheme

How can you tell whether you’re looking at a great business opportunity or a pyramid scheme? At first glance, telling the two apart may be difficult. Pyramid schemes often resemble multilevel marketing (MLM) opportunities, but major differences exist. First, multilevel marketing is legal while pyramid schemes are not. Multilevel marketing is also capable of generating long-term profits. Pyramid schemes crumble eventually, leaving some people with huge losses or, at the very least, wasted time. Discover some tips for telling the difference between the two. Look at the Products or Services The foundational difference between MLM and pyramid schemes is that legitimate MLM companies make money from selling products or services. You may be able to bring in extra revenue by recruiting people, but you and your company are making most of your profits from selling something with real value to customers, not from signing up new recruits. If you think about well-known direct sales companies such as Amway, one of the ...

Read More →

Is Multi Level Marketing A Good Business?

I can still remember being in my freshman year at Boston College when someone called upon me to share in the money making opportunity of a lifetime called the ‘money tree’.     It sounded like a great idea because you could really help people help other people make money.   Essentially, the person recruiting you asked you to give them $50, and then your job was to recruit 10 people who gave you $50.   You get to be in the club once you give your recruiter the $50.  It went something like that, but what I remember most is that it seemed like a good idea that all I had to do was give $50, and then simply recruit a few others to make $500.   The hard part of actually having to recruit people to give you the $50 is where the rubber meets the road in these types of schemes. Multi level marketing has been around for a long time.   Amway ...

Read More →