I have been curious about Network Marketing: Is it synonymous to Pyramiding? Is it Pyramiding?although I’ve witnessed tons of seminars and talks about such when I was in college, It never occurred to me to join into anything as it sounded “too good to be true” , another one of those scams you’ll regret after or thought (until presently) I’ll never be a seller or recruiter.
Our generation are more capable to freelancing and being their own boss; majority of those who are in my circle are entrepreneurs or proprietors and Network Marketing certainly is one of the best advice they usually give me when starting up a business when you still don’t have the capital to actually make your own business structure or ample dough to whip and supply your own product.
After meeting two new young adults, as they discussed and showed their monthly income through the past year, it made me wonder on who they’ve become, what they are now doing and how they actually switched from having a day job, stopped accepting nocturnal shifts into their own boss who earns triple to quadruple than how much they actually earn being an employee of the industry they were in.
I can’t say that I’m already hopping into the umbrella of Network Marketing but after reading through the difference between “Pyramiding” and “Network Marketing” , I’m one step knowledgeable than I was. I’m not as skeptical as I used to be.
For those of you who are questioning themselves about Network Marketing, may this post help you deplete those negative definition and give Network Marketing a Chance. Again, there’s more research to be done but knowing and learning is a step towards clarity. It’s up to you if you’ll accept the challenge of being a Network Marketer.
This blog post clarifies the differences between network marketing and a “pyramid.” as discussed by Carolyn B Johnson (@Carolyn_Johnson)
What is a Pyramid?
A pyramid is a scheme where normally, there’s no product involved at all, just money changing hands — or if there is a product, it’s clearly there just to support a money game.
Pyramids are strictly a money game and have no basis in real commerce. For example, pyramids are programs similar to chain letters where people just invest money based on the promise that other people will put in money that will filter back to each person that participate and somehow, they’ll get rich. In short, it is a get-rich-quick scheme. Just remember, if to looks too good to be true – it IS too good to be true.
There are many such programs in circulation today — so be careful when you are introduced to such a program — chances are it IS a Pyramid scheme!
What is Network Marketing?
Network marketing is a business model that is based on providing people with real, legitimate products they need and want at a fair price. In network marketing a person buys into the concept of the product(s) offered, sponsor other people and teach those people how to sell the company product and those people sponsor others who duplicate the process.
This concept is called “leverage”….. You can leverage your time and increase the number of hours of work effort on which you can be paid by sponsoring other people and earning income on their efforts, while at the same time they get paid for sponsoring and leveraging the efforts of others. This is a win-win for all involved.
J. Paul Getty, who created one of the world’s greatest fortunes, said “I would rather make 1 percent on the efforts of 100 people than 100 percent on my own efforts.” This very basic concept is the cornerstone of network marketing.
By helping the people you personally sponsor to sponsor others, you duplicate yourself. As this process continues, you create compound growth that can lead to hundreds or even thousands of people coming into your business.
Network marketing has proven itself as part of the new economy and is becoming a preferred way to do business here and around the world. It is highly endorsed by Robert Kiyosaki and Donald Trump, Bill Clinton, and others as the new business model of the future.
Network marketing isn’t about taking advantage of friends and relatives. The primary goal is to share excellent products, services, and opportunities with people you know — family, friends and loved ones to help them improve their lives and future.
Sharing the products or services and the opportunity with people you know is still the basic foundation of the business, although today we see more people using sophisticated marketing techniques such as the Internet, conference calling and other long-distance sponsoring techniques to extend their network across the country.
Don’t let questions about whether your network marketing opportunity is a pyramid cause you concern about whether your network marketing opportunity is legitimate. Remember, if you have a solid product or service that customers might need or want your network marketing company is legitimate.